Kelly Is an Architect and She Is Trying to Decide

question 19

Multiple Choice

Kelly is an architect and she is trying to decide whether to hire Mike, a draftsman, to assist with her work. Kelly could hire Mike at $20 per hour but it would take him three times as long to complete a task as it takes Kelly. Kelly is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?

• A) Kelly should not hire Mike because it would be faster for her to do the work herself.
• B) Kelly should do the drafting work herself because she has the lower opportunity cost.
• C) Mike should be hired at the $20 per hour wage rate.
• D) Mike should be hired, but only if he is paid more than $30 per hour.

Analyze transactions to determine their effect on the accounting equation.

Understand the concept of purchasing assets and its impact on the accounting equation.

Distinguish between different methods of asset acquisition (cash vs. credit).

Recognize the effect of business transactions on total assets.

---

Definitions:

Aptitude

A natural ability or talent for learning or proficiency in a specific area.

Performance-Based

An approach or assessment that evaluates individuals based on their ability to perform tasks, achieve results, or meet specific standards.

Tacit Knowledge

Knowledge gained from personal experience and context, often hard to articulate or transfer to others.

Formal

Refers to something done in accordance with rules of convention or etiquette; suitable for or constituting an official or important situation or occasion.