To Complete His Business Bookkeeping Work Each Month,a Business Owner

question 5

Multiple Choice

To complete his business bookkeeping work each month,a business owner spends about 20 hours and in the process,has to give up $900 in income.If he hired a bookkeeper to do the work,the job would be completed in 15 hours and would cost him $600.Should the owner hire the bookkeeper or continue to do the work himself?

• A) He should hire the bookkeeper because the bookkeeper has an absolute advantage in completing the books.
• B) He should do the bookkeeping himself because he has an absolute advantage in completing the books.
• C) He should hire the bookkeeper only if the bookkeeper agrees to give him a discount on the service price.
• D) He should hire the bookkeeper only if the bookkeeper is willing to complete the work in 12 hours.

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Definitions:

Segment Customer Base

The strategy of dividing a business's total customer population into smaller groups based on shared characteristics to tailor products or marketing.

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The use of interconnected computer networks to communicate, access information, and carry out other tasks through the internet.

Order Management Process

A systematic approach to managing and fulfilling sales orders, encompassing order receipt, processing, fulfillment, and after-sales service.