Two Accountants Have the Same Amount of Education and Experience

question 179

Multiple Choice

Two accountants have the same amount of education and experience.If they work at the same type of job for the same profit-maximizing firm,which charges its clients a uniform hourly fee,then _____

• A)they should both earn the same amount of money.
• B)the one whose job is less risky should be paid more.
• C)the one whose job is riskier should be paid less.
• D)the one who has a higher marginal product should be paid more.
• E)the one who has a higher marginal product should be paid less.

---

Definitions:

Activity-based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into creating them, aiming for more accurate costing.

Indirect Labor Costs

Costs related to labor that cannot be directly tied to the production of specific goods or services, such as maintenance personnel or supervisors.

Activity-based Costing

An accounting method that assigns costs to products based on the activities involved in manufacturing or providing a service.

Indirect Costs

Expenses related to the general operation of a business that cannot be directly attributed to a specific project or activity.