If the Building Is Sold for $50,000 and There Are

question 10

Multiple Choice

If the building is sold for $50,000 and there are no liquidation expenses what amount should Harry receive in the final settlement?

• A) $ 5,000.
• B) $ 9,000.
• C) $18,000.
• D) $28,000.
• E) $55,000.

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum the consumer believes it is worth.

Absorption Costing

A pricing methodology that sums up all production-related costs, from raw materials and labor to both flexible and fixed overheads, in calculating the expense of a product.

Cost-plus Pricing

A pricing approach that sets the selling price by adding a predetermined markup to the cost per unit of a product.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated as net profit divided by the cost of the investment.