Answer:
The correct answer is letter "B": are essential to the reallocation of resources from less desired to more desired goods.
Explanation:
Economic profit is the difference between the company's profits from revenue and the overall opportunity cost. The difference between accounting profit and economic profit is significant. Only total revenue minus the explicit cost of producing goods or services is considered to calculate the accounting profit.
The economic profit is called a loss if after subtracting the opportunity costs from revenue the figure is negative. <em>Both profit or losses determine how resources will be allocated in a company prioritizing the more desired goods or those who are needed for the firm's operations.</em>
Answer:
a. Advertising costs relative to the number of customers for a particular restaurant. [Fixed]
b. Rental costs relative to the number of restaurants. [Variable]
c. Cooks salaries at a particular location relative to the number of customers. [Fixed]
d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers. [Variable]
e. Manager's compensation relative to the number of customers. [Mixed]
f. Servers' salaries relative to the number of restaurants. [Variable]
Explanation:
Answer: the correct answer is B. Tax depreciation for the period exceeds book depreciation.
