(Table) According to the Data in the Table, Who Has

question 40

Multiple Choice

(Table) According to the data in the table, who has an absolute advantage in the production of shirts? $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Hours to Produce a } \\\text { Shirt }\end{array} & \begin{array} { l } \text { Hours to Produce } \\\text { a Cake }\end{array} \\\hline \text { Tom } & 5 & 3 \\\hline \text { Joe } & 6 & 4 \\\hline\end{array}$$

• A) Tom, because he can produce more shirts in a week than Joe can
• B) Joe, because he can produce more shirts in a week than Tom can
• C) Tom, because he cannot produce as many shirts as Joe can
• D) Joe, because he cannot produce as many shirts as Tom can

---

Definitions:

Finished Goods Inventory

The stock of final products that are ready to be sold but have not yet been sold to customers.

Cost Of Goods Manufactured

The total production cost of goods completed during a specific period, whether they are sold or not.

Cost Of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Total Quality Management

A management approach focused on improving the quality of an organization's outputs, including goods and services, through continual feedback and improvements.