Scenario 13-13 Christine Is an Artist Who Creates Custom Cookie Jars. Her

question 394

Multiple Choice

Scenario 13-13
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000. The annual explicit costs of the materials used to make the cookie jars are $54,000.
-Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer. What is the annual accounting profit of her cookie jar business?

• A)$36,000
• B)$35,950
• C)$30,000
• D)$29,950

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Logrolling

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Public Choice

A field of economics that applies economic methods to the study of political and administrative decision-making.

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Inefficiencies and wasted resources resulting from the cumbersome procedures, redundant paperwork, and unnecessary red tape often associated with large administrative systems.

Budget Allocation

The process of distributing available resources or finances among various projects or departments within an organization or government.