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____ [38]
3 years ago
8

A disadvantage of static budgets is that they a.do not allow for possible changes in activity levels b.show the expected results

of a responsibility center for several levels of activity c.are dependent on the previous year's actual results d.cannot be used by service companies
Business
1 answer:
Galina-37 [17]3 years ago
4 0

Answer:

Static budgets do not allow for possible changes in activity levels (A).

Explanation:

Budgets play a vital role in helping firms track their finances, know their expenses, and also identify methods to maximize profit. A static budget is a budget that is constant even though other factors like revenue and sales volume change.

The static budget is based on the firm's expected output level and revenue at the beginning of the accounting period that it is designed to cover. For example, if $5 million is made as revenue by a company for the last year, the company may create a static budget built on that particular revenue figure.

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The ratio of the percentage change in the quantity supplied of a good/service/e-good/e-service to a given percentage change in i
KiRa [710]

The answer is true. The percentage change in quantity supplied as a result of a specific percentage change in the commodity's own price is known as price elasticity of supply.

It is determined by dividing the percentage change in the quantity delivered by the percentage change in the commodity's price. These factors impact the price elasticity of supply: Number of producers: simplicity of entrance. Spare capacity: If there is a change in demand, it is simple to expand production. Switching is simple when production of the good may be changed, making the supply more elastic. The availability of non-essential items like soft drinks.

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4 0
1 year ago
g Select one: a. Capital budgeting analysis for expansion and replacement projects is essentially the same because the types of
timofeeve [1]

Answer:

The correct statement option is b.

Explanation:

The replacement decision involves an analysis of two independent projects where cash flows include the initial investment, additional depreciation and the terminal value.

The replacement decision is the process of identifying, evaluating and taking decisions on two or more independent alternatives. During this process company evaluate various alternatives of investment in different projects and select one of the best alternative based on its cost, rate of return, time required and risk associated with it etc.

6 0
3 years ago
1. A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of th
Delicious77 [7]

Answer:

A. $10,500

Explanation:

FV of IDNA:  

Book value                                                     $ 15,000

Revalued plant assets                                    ($25,000)

license agreements                                           $30,000

Intangible assets                                             $50,000

                                                                           $ 70,000

Non-controlling interest valued at the date of acquisition, following the alternative method allowed by IFRS = 15% * 70,000 =  $10,500.

4 0
3 years ago
The primary objective of growth mutual funds is capital appreciation with a high level of current income.
GenaCL600 [577]

The primary objective of growth mutual funds is capital appreciation with a high level of current income.

This statement is False.

A mutual fund is an investment vehicle that is professionally managed and collects money from a number of investors to buy securities.

The phrase is frequently used in the US, Canada, and India, while other countries with comparable arrangements include the UK's SICAV in Europe.

The primary investments of mutual funds are frequently categorized as money market funds, bond or fixed income funds, stock or equity funds, or hybrid funds.

Alternatively, funds can be characterized as actively managed funds, which aim to outperform stock market indices but typically charge higher fees, or index funds, which are passively managed funds that follow the performance of an index, such as a stock market index or bond market index.

Unit investment, closed-end funds, and open-end funds are the three main types of mutual funds.

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8 0
1 year ago
People enjoy outdoor holiday lighting displays and would be willing to pay to see these displays but can't be made to pay. Becau
Katarina [22]

Answer: (2) Demand-side market failure

Explanation:

 The demand side market failure is one of the type of market effect that basically occur due to the production of the negative response and the effect by the various types of marketing techniques like surveys and the focus groups.

The market failure demand side is one of the type of economical situation in which the customers are willing to pay for the specific products and the services in the market which is not fully capture.

According to the given question, the demand- side market failure is one of the example that best illustrating the given situation. Therefore, Option (2) is correct answer.      

8 0
3 years ago
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