Refer to the Information Provided in Table 20 -Refer to Table 20

question 165

Multiple Choice

Refer to the information provided in Table 20.2 below to answer the question(s) that follow.
Table 20.2 $$\begin{array} { c c c c } \hline & \text { China } &\quad\quad\quad\quad\quad\quad { \text { Thailand } } \\\text { Tractors } & \text { Motorcycles } & \text { Tractors } & \text { Motorcycles } \\\hline 0 & 300 & 0 & 300 \\5 & 250 & 5 & 225 \\10 & 200 & 10 & 150 \\15 & 150 & 15 & 75 \\20 & 100 & 20 & 0 \\25 & 50 & - & - \\30 & 0 & - & - \\\hline\end{array}$$
-Refer to Table 20.2. In Thailand, the opportunity cost of

• A) a motorcycle is 1/15 of a tractor.
• B) a motorcycle is 15 tractors.
• C) a motorcycle is 1/30 of a tractor.
• D) a tractor is 20 motorcycles.

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Definitions:

Production Budget

is a financial plan that estimates the cost of production based on projected product volumes, including costs of materials, labor, and overhead.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using inventory valuation methods such as FIFO, LIFO, or weighted average.

Budgeted Sales

Projected amounts of sales for a future period, used for planning and performance evaluation purposes.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and overhead.