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

question 66

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.

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Definitions:

Telecommuting

A work arrangement in which employees do not commute to a central place of work but instead work remotely, often from home, using telecommunications technology.

Flexible Work Arrangement

Employment terms that allow employees to vary their working hours, locations, or schedules to accommodate personal needs and improve work-life balance.

When They Work

Situations or conditions under which specific strategies, processes, or efforts yield successful outcomes.

Flexible Work Arrangements

Work structures that allow employees to have varying schedules and locations, enhancing work-life balance.