Scenario 12-8 Ellie Has Been Working for an Engineering Firm and Earning

question 95

Multiple Choice

Scenario 12-8
Ellie has been working for an engineering firm and earning an annual salary of $80,000.She decides to open her own engineering business.Her annual expenses will include $15,000 for office rent,$3,000 for equipment rental,$1,000 for supplies,$1,200 for utilities,and a $35,000 salary for a secretary/bookkeeper.Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500.
-Refer to Scenario 12-8.Ellie's annual accounting costs will equal

• A) $55,200.
• B) $75,200.
• C) $80,500.
• D) $165,700.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person holding two or more contradictory beliefs, values, or ideas.

Dissonance

A psychological or emotional state of tension resulting from conflicting attitudes, beliefs, or behaviors.

Festinger

Leon Festinger, an American social psychologist known for his theory of cognitive dissonance, which describes the discomfort experienced when holding two or more conflicting cognitions.

Sherif's Robbers Cave

An experiment on conflict and cooperation by Muzafer Sherif, demonstrating how group identity can be used to foster unity or create conflict.