When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
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What is Net operating income?</h3>
- Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..
- Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.
- By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.
- After all costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses.
- Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.
Hence, When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
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Answer: The deficit is lower when compared to 2010.
Explanation:
The United States Budget for 2010 titled "A New Era of Responsibility: Renewing America's Promise by President Barack Obama's budget in 2010 was $3.456 trillion for expenditure and total revenue was $2.163 which led to a budget deficit of $1.294 trillion.
In 2019, the revenue was $3.422 and expenditure was $4.407 which led to a budget deficit was $985. It can be deduced that there has been a reduction in the budget deficit when compared to 2010.
Answer:
II: Insurance marketing systems include; General Agencies, Branch offices managed by employees of the company, and Personal; Producing General Agents (PPGA's).
Explanation:
Every insurance company has branch offices that operate on different regional levels that are managed and operated by employees.
General agencies are responsible for receiving insurance applications and negotiating and negotiating contracts on behalf of the insurance company.
Producing general agents (PPGA's) is a type of insurance agent that usually provides services to more than one insurance company and whose main duty is to sell as many policies as they can.
