Dilbert's Incorporated Produced 5,000,000 Units of Accounting Software in 2004

question 8

Multiple Choice

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

• A) fell by 4%.
• B) fell by 20%.
• C) rose by 12%.
• D) rose by 20%.

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Definitions:

Balance Sheet

A financial summary indicating a company's assets, outstanding liabilities, and the total equity of its shareholders at a determined point in time.

Understated

Describes financial statements or figures that are reported as less than their actual values.

Purchase Price

The amount paid or to be paid by the buyer to acquire a good, service, or asset.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from total revenue.