A College Student Is Developing a Spreadsheet Model of a Budget

question 10

Multiple Choice

A college student is developing a spreadsheet model of a budget. To calculate the monthly surplus (or deficit) , the student subtracts living expenses, entertainment costs, and savings from income. Entering which of the following formulas into cell B5 will perform the proper calculation?

• A) =Monthly Income − Expenses
• B) =B1 − B2 − B3 − B4
• C) =B2 + B3 + B4 − B1
• D) =B1 + (B2 − B3 − B4)
• E) =B1 − (B2 − B3 − B4)

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Definitions:

Labor Cost

The total amount of financial compensation, benefits, and taxes companies must pay for their employees' work.

Raising Prices

The act of increasing the cost at which goods or services are sold to consumers or other businesses.

Strategies

Plans of action designed to achieve a long-term or overall aim.

Reference Price

The price point, set by a seller or recognized by a buyer, which serves as a standard for comparison when evaluating potential purchases.