Question

Brooks agency set up a petty cash fund for 270

a) $270
b) $120
c) $150
d) $420

Answer 1

The firm's accounting profit can be calculated by subtracting the total expenses from the sales revenue.

Step-by-step explanation:

The accounting profit of a firm can be calculated by subtracting the total expenses from the sales revenue. In this case, the firm's sales revenue was $1 million. The total expenses include $600,000 on labor, $150,000 on capital, and $200,000 on materials. So, the accounting profit would be $1 million - ($600,000 + $150,000 + $200,000) = $50,000.