Question

How is the concept of "notional rent" relevant in expense analysis?

a.

It represents the actual rental cost paid by the company for its office buildings.

b.

It signifies the potential rental income that the company could earn from its owned buildings.

c.

It refers to the expenses incurred for heating, lighting, and cleaning of office buildings.

d.

It represents the costs associated with computer usage in the company.

Answer: (b).It signifies the potential rental income that the company could earn from its owned buildings. Explanation:The concept of "notional rent" in expense analysis refers to the potential rental income that the company could earn from its owned buildings.

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Q. How is the concept of "notional rent" relevant in expense analysis?

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