Omoyosi Corporation Would Like to Determine the Relative Profitability of a Number

question 41

Multiple Choice

Omoyosi Corporation would like to determine the relative profitability of a number of jobs. For illustration purposes, the company has provided the following data for job V66L: What is the profitability index for job V66L?

• A)0.30
• B)$111 per hour
• C)$370 per hour
• D)$259 per hour

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Definitions:

Correcting Entry

An accounting entry made to correct an error found in the previously issued financial statements or records.

Service Revenue

Income earned by a company for providing intangible products or services to customers.

Accounts Receivable

The sum that clients or customers owe to a business for products or services that have been delivered, but not yet compensated for.

Current Liabilities

Financial obligations or debts a company must pay within a year or within its normal operating cycle.