Matthew Just Graduated from Culinary School

question 254

Multiple Choice

Matthew just graduated from culinary school. He can earn $40,000 a year working for the same local bakery he has worked at since before starting culinary school, or accept a job offer he received after graduation from a high-end restaurant paying $70,000 a year. The higher salary is a result of

• A)a compensating differential.
• B)efficient union bargaining.
• C)having more human capital.
• D)pure luck.

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Definitions:

Collection Schedule

A plan or timetable for collecting receivables from customers, detailing the timing of payments to be received.

Uncollectible

Refers to accounts receivable or debts that are deemed unlikely to be collected and may be written off as bad debts.

Budgeted Sales

Forecasted sales figures used for planning purposes, reflecting the expected amount of revenue a company aims to generate in a specific period.

Direct Labour-Hours

The total hours worked directly on the production of goods, used to allocate labor costs accurately to products.