Until Recently,Rosemarie Worked as an Accountant,earning $30,000 Annually

question 165

Multiple Choice

Until recently,Rosemarie worked as an accountant,earning $30,000 annually.Then she inherited a piece of commercial real estate that had been renting for $12,000 annually.Rosemarie decided to leave her job and operate a Peruvian restaurant in the space she inherited.At the end of the first year,her books showed total revenues of $260,000 and total costs of $230,000 for food,utilities,cooks,and other supplies.Her economic profit at the end of one year is:

• A)$230,000.
• B)$30,000.
• C)$0.
• D)-$12,000.

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Definitions:

Universal Rules

Guidelines or principles that are intended to apply universally, without cultural, geographical, or situational exceptions.

Procedural Values

The principles or standards that guide how decisions are made or actions are carried out within an organization or society, emphasizing the importance of the process used.

Social Weighting

The process of assigning importance or value to individuals or groups within a social context, often influencing decision-making and interactions.

Rationalization Strategy

A method for improving efficiency and productivity through the standardization of processes and the adoption of best practices.