If a Particular Job Takes 20 Hours of Labor and $800

question 56

Multiple Choice

If a particular job takes 20 hours of labor and $800 of materials, the price charged for the job is:

• A) $1,380.
• B) $1,444.
• C) $1,530.
• D) $1,594.
• E) none of the other answers are correct.

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Definitions:

Working Capital

A measure of a firm's ability to fulfill short-term financial obligations, underscored by its liquid assets minus its due debts.

Salvage Value

The appraised remaining value of an asset at the point of its life end.

Pretax Return

The earnings of a company before taxes have been deducted.

Working Capital

The gap between what a business owns in current assets and owes in current liabilities, showing the available liquidity to cover daily operational costs.