Owner-Supplied Labor Is a Cost That Is Usually

question 3

Multiple Choice

Owner-supplied labor is a cost that is usually:

• A) included in both accounting costs and economic costs.
• B) included in accounting costs but not in economic costs.
• C) included in economic costs but not in accounting costs.
• D) not included in either accounting costs or economic costs.
• E) ignored because it is impossible to place a value on it.

Comprehend the importance of turnover in evaluating divisional performance.

Understand how sales, gross margin, and net operating income influence an organization's financial performance.

Recognize the distinction between profit centers, investment centers, and cost centers.

Evaluate the use and implications of various performance measures including ROI, residual income, and turnover.

---

Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and internal conflicts.

Displacement

In psychology, a defense mechanism where an individual redirects emotional impulses from a real object to a safer substitute target.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby avoiding facing uncomfortable emotions.