Jason Is Trying to Decide Which One of Two Job

question 26

Multiple Choice

Jason is trying to decide which one of two job offers he will accept. Several items are presented below: Which of the above items would be considered relevant costs?
$\begin{array}{|l|r|r|}\hline \text { (1) Base salary } & \$ 40,000 & \$ 40,000 \\\hline\text { (2) Overtime compensation } & \text { Comp. time } & \text { Hourly rate } \\\hline\text { (3) Moving allowance } & \$ 2,000 & \$ 2,000 \\\hline \text { (4) Signing bonus } & \$ 1,000 & \$ 0 \\\hline\text { (5) Job search costs } & \$ 500 & \$ 500\\\hline\end{array}$

• A)(1), (3), (5)
• B)(2), (4)
• C)(5)
• D)None of the above.

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Definitions:

Gross Margin Percentage

A financial metric that indicates the proportion of money left over from revenues after deducting the cost of goods sold, expressed as a percentage of total revenue.

Earnings Per Share

A measurement of a company's profitability, calculated by dividing net income by the number of outstanding shares of its common stock.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the current market price of a share by its earnings per share (EPS).

Dividend Payout Ratio

The ratio of the total dividends declared by a company to its net income, showing what portion of earnings is paid out as dividends.