Stephenson Company Is Trying to Decide Which One of Two

question 136

Multiple Choice

Stephenson Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another?
$$\begin{array} { | l | r | r | } \hline & \text { Contract X } & \text { Contract Z } \\\hline \text { Contract Revenue } & \$ 200,000 & \$ 260,000 \\\hline \text { Materials } & 10,000 & 10,000 \\\hline \text { Labor } & 88,000 & 120,000 \\\hline \text { Depreciation on Equipment } & 8,000 & 10,000 \\\hline \text { Cost Incurred for Consulting Advice } & 1,500 & 1,500 \\\hline \text { Allocated Portion of Overhead } & 5,000 & 3,000 \\\hline\end{array}$$

• A)Contract revenue and labor costs
• B)Materials, consulting advice and allocated overhead
• C)Cost of consulting advice and allocated overhead
• D)Contract revenue, labor costs and depreciation on equipment

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Definitions:

Interpersonal Relationships

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A personality disorder characterized by persistent antisocial behavior, impaired empathy, and bold, disinhibited, and egotistical traits.

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A personality trait associated with manipulativeness, deception, and exploitation to achieve personal goals.

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a personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.