Chris Was the Business Manager for a Real Estate Firm

question 39

Multiple Choice

Chris was the business manager for a real estate firm earning an annual salary of $40,000.Then Chris decided to become a consultant.Chris hired an administrative assistant at $15,000 per year and rents office space (utilities included) for $3,000 per month.Chris earned $100,000 in total revenue the first year as a consultant.
In order for Chris to earn normal profit,accounting profit would have to be _______.

• A)$51,000
• B)$40,000
• C)0
• D)$9,000

Learn about variance analysis, including how to calculate and interpret different variances.

Appreciate the role of standards and variances in efficient production and cost control.

Understand the concepts of standard costs and how they are used in budgeting and variance analysis.

Distinguish between different types of variances, including direct labor time variance, direct labor rate variance, and direct materials quantity variance.

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Definitions:

Mean Difference

The average of differences between pairs of observations in a dataset.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Paired T-test

A statistical test used to compare the means of two related groups to determine if there is a significant difference between them.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of a Type I error.