Susan Travels Among Client Sites as a Routine Part of Her

question 23

Multiple Choice

Susan travels among client sites as a routine part of her employment.Travel to her first customer site and from the last customer site to her home are not compensated.Under which of the following circumstances will she not be compensated for her travel?

• A) Travel from the client site to a personal dinner engagement at the end of the workday
• B) Travel between client sites and the firm's office
• C) Travel from her home to the client site at the beginning of the workday
• D) Travel to alternate sites for the firm's meetings with multiple clients

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Definitions:

Economic Profits

The margin between an organization's complete earnings and its aggregate expenditures, covering both visible and hidden costs.

Implicit Costs

Implicit costs are the opportunity costs of using resources owned by the business for production instead of lending, selling, or renting them out.

Accounting Profits

The net income for a company determined by subtracting total expenses from total revenues, according to generally accepted accounting principles (GAAP).

Short Run

A period of time during which at least one factor of production is fixed, usually considered in economic models and analyses.