Harvey Develops Gaming Apps from Home Instead of Working as an Engineer

question 194

Multiple Choice

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.If downloads generate $45,000 in revenue during the first year,then his business _____

• A)has an accounting profit but an economic loss.
• B)has an accounting loss and an economic profit.
• C)has both accounting and economic profits.
• D)has both an accounting and an economic loss.
• E)has a normal profit.

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Definitions:

Retention Tool

Strategies or practices employed by organizations to keep valuable employees and reduce turnover.

Productivity Measurement

The evaluation of the efficiency of a worker, machine, or system in converting inputs into useful outputs.

Evaluation System

A formal process used to assess the performance, effectiveness, or value of individuals, projects, or programs.

ProMES

A performance management system that focuses on measuring and improving job performance through specific goals and feedback.