Table 71
​ -Refer to Table 7

question 98

Multiple Choice

Table 7.1
​
$$\begin{array} { l r } \text { Total Revenue } & \$ 100,000 \\\hline \text { Assistant's sal ary } & \$ 20,000 \\\text { Material \& equipment } & \$ 15,000 \\\text { Forgone salary } & \$ 30,000 \\\text { Forgone interest } & \$ 1,000 \\\text { Forgone building rental } & \$ 10,000\end{array}$$
-Refer to Table 7.1,which shows revenue and cost information for Sally's small business.Sally owns a small business that she operates in a building she owns.Given the information in the table below,Sally's economic profit is equal to _____

• A)$80,000.
• B)$50,000.
• C)$65,000.
• D)$35,000.
• E)$24,000.

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Definitions:

Management Accounting Systems

Systems used by businesses to provide managerial staff with financial data and analysis for decision-making.

Organisation's Strategy

The comprehensive plan and actions set by a business to achieve long-term goals and competitive advantage.

Business Environment

The combination of internal and external factors that influence a company's operating situation, including economic, legal, political, and technological aspects.

Outsourcing

The practice of hiring third parties to perform services or produce goods that traditionally were performed in-house by the company's own employees and staff.