A Spreadsheet Modeler Is Creating a Spreadsheet to Calculate Each

question 52

Multiple Choice

A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for a time period. After completing the model, the analyst feels there is an error. Interpret the auditing information shown below to determine which of the following statements is TRUE.

• A) There is no error in the model.
• B) The model is incorrect because it is using the wrong information for the employee hours.
• C) The model is incorrect because it is using the wrong wage information.
• D) The model is incorrect, but it is impossible to determine why.
• E) The model is incorrect because it is using the wrong information for the employee hours and the model is incorrect because it is using the wrong wage information are both true.

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Definitions:

Profit Maximization

A fundamental goal of businesses, which involves adjusting inputs and outputs to achieve the highest possible profit.

Market Price

The price of a commodity when sold in a competitive marketplace, determined by the supply and demand for the commodity.

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the business.

Short-Run

A period in which at least one factor of production is considered fixed, affecting the ability of businesses to change production levels.