Vipsana's Gyros House Sells Gyros

question 90

Multiple Choice

Vipsana's Gyros House sells gyros.The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00.Vipsana pays her employees $60 per day.She also incurs a fixed cost of $120 per day.Calculate Vipsana's total cost per day when she produces 50 gyros using two workers?

• A)$100
• B)$124.40
• C)$220
• D)$340

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Definitions:

Partnerships

Partnerships indicate a legal form of business operation between two or more individuals who share management and profits.

Corporations

Legal entities that are separate from their owners, offering limited liability to shareholders, and having the ability to own property, sue, or be sued.

Cost Principle

An accounting principle that states assets should be recorded at their cost at the time of purchase, not at their current value.

Accounting Records

Documents and records that a business maintains to keep track of its financial transactions, assets, and liabilities.