The Following Is Cost Information for the Creamy Crisp Donut

question 260

Multiple Choice

The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Creamy Crisp Donut Company

• A)has lower explicit costs, than implicit costs.
• B)is earning a normal profit but not an economic profit.
• C)is earning an economic profit.
• D)is suffering an economic loss, when implicit costs are considered.

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Definitions:

Auditing

The process of examining and verifying a company's financial records to ensure accuracy and compliance with laws and regulations.

SUMIF Function

A function in spreadsheet software that sums the values in a range that meet specified criteria.

Criteria

The standards or conditions that are used to judge or make a decision about something.

Range

In computing, it often refers to a selection of cells in spreadsheets or a series of values in programming.