Billy Runs an Accounting Firm

question 238

Multiple Choice

Billy runs an accounting firm.He has three full-time employees who are paid an annual salary of $135,000 each.For 4 weeks during the tax preparation season,Billy hires additional staff on a temporary basis to meet the surge in demand for his firm's service.Billy must also pay a premium for professional liability insurance for the whole firm every month.For Billy's firm,________.

• A) the full-time employees and the liability insurance are fixed inputs
• B) all employees, full-time and temporary, are variable inputs
• C) the liability insurance is a variable input
• D) all inputs are variable

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Definitions:

Passive People

Individuals who tend to accept or allow what happens or what others do, often without active response or resistance.

Screening Out

The process of filtering information to ignore or minimize less relevant or distracting messages.

Compromiser

An individual who deals with conflict by finding a middle ground between differing points of view, aiming to partially satisfy all parties involved.

Competitor

An entity that competes against others for the same market share or audience in a particular industry or sector.