Available Options:
a) The budget helps motivate employees to achieve sales growth and cost-reduction goals.
b) The budget provides managers with a benchmark against which to compare actual results for performance evaluation.
c) The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
d) All of the above.
Answer:
Option D. All of the above.
Explanation:
The reason is that when budgets are set every personnel in the organization is given a task along with the restriction on the use of excessive resources of the company by generating a standard number of output, which is benefitial to the company and the managers as well.
Furthermore, standard costs are used in budgeting to estimate the costs of the operations of the company which means that the standard cost would be used for actual units to compare the actual results to make meaningful conclusions.
At the end, the main benefit of the budgeting is that it highlights the potential issues in the operating systems of the organization which must be corrected to avoid the same advers outcome in the future.
So all of the statements are correct.
Answer: $22,000
Explanation:
The total revenue to be recognized by Italian Fine Dinning Inc. is the standalone selling price for the franchise services which is $88,000.
As this contract is for a four year period, Italian Fine Dinning Inc will have to recognize the above revenue over a period of 4 years.
Revenue in December 2020 will therefore:
= 88,000 / 4
= $22,000
Interesting thing you’re doing lol
A company in its first stage of its operations is often called a startup. Where products and services are produced and your first customers are usually family or friends. It is in this stage where a company builds a strong foundation about customers, how to market the business and strict protection of cash flow.
Answer: a. Foreign direct investment
b. Foreign portfolio investment
Explanation:
a. Opening a retail store in a foreign country is a foreign direct investment. This simply means a scenario whereby one establishes a business in another country that is different from ones own country. For example an American establishing a business in Japan is a foreign direct investment.
b. Buying corporate stock in a retail chain in a foreign country is a foreign portfolio investment. This is a situation when one buys shares, bonds etc in another country.
