Refer to Scenario 7

question 78

Multiple Choice

Refer to Scenario 7.3 below to answer the question(s) that follow.
SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000.
-Refer to Scenario 7.3. Your annual economic profit is

• A) -$10,000.
• B) $40,000.
• C) $50,000.
• D) $100,000.

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Definitions:

Mean Absolute Deviation

A measure of dispersion in a dataset, calculated as the average distance between each data point and the mean of the data.

Sum of Squares

A measure of the total variability within a data set, calculated by summing the squares of differences from the mean.

Daily Indexes

These are metrics or values that are recalculated every day to reflect the current state or performance of a particular dataset or market.

Mean Absolute Deviation

The average of the absolute differences between each data point in a set and the overall mean, reflecting dispersion.