If Sam Can Chop Up More Carrots Per Minute Than

question 74

Multiple Choice

If Sam can chop up more carrots per minute than Joe can, then

• A)Joe has an absolute advantage in carrot chopping
• B)Joe must have a comparative advantage in carrot chopping
• C)Sam has an absolute advantage in carrot chopping
• D)Sam must have a comparative advantage in carrot chopping
• E)we can conclude nothing about absolute advantage

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard (expected) cost.

Standard Quantity Of Hours

The standard quantity of hours refers to the pre-determined amount of labor hours estimated to be necessary to produce a single unit of output.

Standard Cost Per Mip

The predetermined cost of manufacturing one unit of product, where Mip is typically a measure of output.

Direct Labour Efficiency Variance

A measure used in cost accounting to determine the difference between the labor time expected to produce goods and the actual labor time used.