Stan Owns a Software Design Business

question 123

Multiple Choice

Stan owns a software design business.He obtained a bank loan to buy computer equipment for his business.He pays $1,000 per month for interest on the loan.He has 10 employees, each of whom is paid $4,000 per month.Because his business has been successful, next month he will increase employee wages to $5,000.If the revenue from his business remains at its current level, Stan is considering an addition to his office.Which of the following statements regarding Stan's business is false?

• A)The payments Stan makes to his employees are variable costs and explicit costs.
• B)The monthly payment Stan makes for his bank loan is an implicit cost.
• C)The monthly payment Stan makes for his bank loan is a fixed cost.
• D)The time and effort Stan spends on his software design business is an implicit cost.

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Definitions:

Diaphragm

A large, dome-shaped muscle located below the lungs that plays a critical role in the respiratory process by helping to inhale and exhale air.

Z Pattern

A movement or visual pattern that follows a zigzag trajectory, often used in eye movement studies or design.

Whisper Test

A simple hearing test in which an examiner whispers a series of words or letters from a set distance to evaluate an individual's hearing ability.

Pinna

The visible part of the ear that is outside the head, which functions to collect and direct sound waves into the ear canal.