Hunter Is an Ambitious, Competitive Person Who Has Always Tried

question 322

Multiple Choice

Hunter is an ambitious, competitive person who has always tried to be the best at everything he does. Consider the following job options facing Hunter and choose the option that will likely afford him the highest wage.

• A)elementary school teacher who works 9 months of the year
• B)manager in a large firm who earns an annual salary with no potential for bonuses or commissions
• C)salesperson who earns a small base salary plus a percentage of the sales he makes
• D)local television news anchor who works during the day

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Definitions:

Fixed Budget

A budget that remains constant, regardless of changes in the volume of activity, sales, or other factors.

Direct Materials Quantity Variance

The difference between the actual amount of materials used in production and the expected amount.

Pounds

A unit of weight commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and profit.