Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 19

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year.What is the accounting profit for the firm described above?

• A)-$90,000.
• B)$0.
• C)$90,000.
• D)$200,000.

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Definitions:

Mores

Norms that carry a strong sense of social importance and necessity.

Values

Beliefs or standards of conduct that are important to a group or individual, guiding decisions and behaviors.

Cultural Transmission

The process by which a society's culture, including knowledge, norms, values, and beliefs, is passed down from generation to generation through communication and imitation.

Material Culture

Material Culture involves the physical objects, resources, and spaces that people use to define their culture, including buildings, artifacts, tools, and artwork, which reflect the values and norms of a society.