Helga Owns Viking, Inc

question 184

Multiple Choice

Helga owns Viking, Inc., started with her $100,000 inheritance.Helga's accountant informs her that her firm earned a profit of $100,000 last year, and that if she chooses to invest the money she can expect a 10% return.If Helga did not run Viking, she would not work.What were Helga's economic profits last year?

• A)Zero 
• B)$100,000 
• C)$90,000 
• D)$95,000

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Definitions:

Activity-Based Costing

Activity-based costing is an accounting method that assigns costs to products or services based on the activities that go into producing them, thereby giving more accurate insights into the costs and profitability of each.

Facility Sustaining Costs

Expenses incurred to maintain the operational capacity of a physical facility or infrastructure, excluding costs related to direct production activities.

Cleaning

The process of removing contaminants, dirt, and impurities from objects and environments, often for maintaining health and hygiene.

Custodial Work

The cleaning, maintenance, and upkeep tasks performed to manage and maintain buildings and facilities.