A Highly-Paid Research Scientist Works 12 Hours a Day, While

question 32

Essay

A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost.

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Definitions:

Adjusting Journal Entry

A record in accounting that is used to adjust incomes and expenses to match the accounting period in which they actually occurred.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Allowance For Doubtful Accounts

An account opposite to assets that predicts the amount of accounts receivable that might not be recoverable.

Allowance for Doubtful Accounts

An accounting provision made to account for customers' invoices that may not be collectible in the future.