Sally Is a Corporate Sales Representative for Computer City

question 32

Multiple Choice

Sally is a corporate sales representative for Computer City.Sally receives a monthly travel allowance from Computer City to cover her travel costs (transportation,food,lodging,entertainment,etc. ) .If Sally is not required to account to Computer City for the use of the travel advance
I.Sally will not have to show any aspect of the travel reimbursement or expenses incurred if she spends all of the reimbursement on valid travel expenses.
II.Sally will only have gross income to the extent her travel allowance exceeds her actual costs.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

VMPL

Stands for the Value of Marginal Product of Labor, which is the additional revenue a firm earns by employing one more unit of labor.

Profit

The financial gain obtained when revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Factor Demand Curve

The relationship between the price of a factor of production and the quantity of that factor that is demanded, holding all else constant.

Final Product

A good or service that is consumed by the end-user and does not require further processing or transformation.