Use the Following Scenario to Answer the Following Questions

question 127

Multiple Choice

Use the following scenario to answer the following questions:
Babak owns a sports practice facility called Boston Batting Cages in Boston,Massachusetts.During the first year of operation,Boston Batting Cages incurred many costs.In that year,Babak spent $5,000 on labor,$2,000 on maintenance,and $1,000 on electricity.Babak took out a loan to open his business,in which he would have earned $1,500,and his previous job,which he could get back at any time,paid him $50,000.
-If Boston Batting Cages received $80,000 in revenues,what were the accounting profits?

• A) $20,500
• B) $72,000
• C) $51,500
• D) $80,000
• E) $50,000

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Definitions:

Objectivity

The practice of basing decisions or conclusions on unbiased facts and evidence rather than personal feelings or opinions.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

Boundary Spanning

Activities undertaken by individuals or organizations to interact with and influence external stakeholders and environments.

Contingency

An uncertain event or condition that, if it occurs, may have a positive or negative impact on a project's objectives.