Table 1 Shows the Units of Output a Worker Can

question 25

Multiple Choice

Table 1 shows the units of output a worker can produce per month in Australia and Korea. ?
$\begin{array}{|l|l|l|}\hline & \text { Food } & \text { Electronics } \\\hline \text { Australia } & 20 & 5 \\\hline \text { Korea } & 8 & 2 \\\hline\end{array}$
Refer to table 1. The opportunity cost of 1 unit of food in Australia is

• A) 1/5 of a unit of electronics.
• B) 5 units of electronics.
• C) 4 units of electronics.
• D) 1/4 of a unit of electronics.

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Definitions:

Activity Cost Pools

A technique in managerial accounting where costs are aggregated based upon the activities that generate those costs, to assign costs more accurately.

Machine-Hours

A measure of production activity that quantifies the amount of time machinery is used to manufacture products during a specific period.

Batches

Quantities or groups of goods produced or processed at the same time in manufacturing.

Product Margins

The difference between the selling price of a product and the cost of goods sold, representing the profit per unit sold.