DC Construction Has Two Divisions: Remodeling and New Home Construction

question 154

Multiple Choice

DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $62,000 annually and one salaried estimator who is paid $36,000 annually. The corporate office has two office administrative assistants who are paid salaries of $40,000 and $32,000 annually. The president's salary is $138,000. How much of these salaries are common fixed expenses?

• A)$138,000
• B)$210,000
• C)$72,000
• D)$258,000

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Definitions:

Total Assets Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate revenue.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the financial performance over a given period.

Cash Flow

A rephrased definition for KT-16: The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Operating Cash Flow

The amount of cash generated by a company's regular business operations over a specific period.