Answer: Option B
Explanation: In simple words, flexible budget variance refers to the difference between the results that were predicted by the flexible budget model and the actual results.
Flexible budgets are not rigid and are made on some assumptions the difference arises due to variance in the level of variable expenses that were incorrectly predicted by the model.
Hence the correct option is B.
Answer:
The correct answer is introductory.
Explanation:
In short, it is the stage where the conception, definition and experimental period of the product is fixed, studies say that more than 70% fail to launch to the market. It is characterized by:
- Low sales volume
- Great technical, commercial and communication investment.
- Great effort to fine-tune the manufacturing means.
- Difficulties to introduce the product in the market.
- Low saturation of your potential market.
- Few bidders.
- Special dedication of the sales team.
In summary, this phase is characterized by a negative profitability due to the great resources that are necessary to manufacture, launch and refine the product, compared to the sales volume achieved.
Answer:
B. Less than 10%
Explanation:
An addition increase by 10 % in the physical capital stock (which is a factor of production consisting of man made goods like machineries and so on) will lead to a less than 10% increase in the Gross domestic product. This is due to the law of diminishing marginal utility which talks about the consumption increases marginal utility from each additional unit declines. Thus, the more the physical capital stock increases, the GDP will increase at a decreasing rate.
