1. In last months variance report, you notice that operating revenue exceeds your budget by 10%. Would you expect departmental expenses to be greater than the budget? If so, how much variance is acceptable?
2. Describe a situation where marketing could be a fixed expense and another where it would be considered semifixed
3. Using the IRR sample in the chapter, assume that the hurdle rate of a potential capital improvement is 18%. Would you make the purchase?
4. Is a high current ratio desirable? How about a high asset turnover ratio?