The following two items are from Marcia White's "Dining Out" expense category:
1. January monthly variance = $25 (favorable);
2. February cumulative variance = -$10 (unfavorable).
If Marcia budgeted $85 a month for this activity, we know that she
A)
spent $60 in January and $95 in February.
B)
spent $60 in January and $120 in February.
C)
can bring the activity back within budget by spending $85 in March.
D)
has not budgeted properly.
B
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Which of the following statements is FALSE?
A. Shareholders typically must pay taxes on the dividends they receive. They must also pay capital gains taxes when they sell their shares. B. Unlike with capital structure, taxes are not an important market imperfection that influence a firm's decision to pay dividends or repurchase shares. C. Because long-term investors can defer the capital gains tax until they sell, there is still a tax advantage for share repurchases over dividends. D. If dividends are taxed at a higher rate than capital gains, which has been true until the most recent change to the tax code, shareholders will prefer share repurchases to dividends.
The service sector has lower productivity improvements than the manufacturing sector because:
A) the service sector uses less skilled labor than manufacturing. B) the quality of output is lower in services than manufacturing. C) services usually are labor-intensive. D) service sector productivity is hard to measure. E) the service sector is often easy to mechanize and automate.