Table 2-13 Table 2-13 Shows the Output Per Day of Day

question 5

Multiple Choice

Table 2-13
Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-Refer to Table 2-13. Which of the following statements is true?

• A) Horace has an absolute advantage in both tasks.
• B) Tammi has an absolute advantage in both tasks.
• C) Horace has an absolute advantage in dog grooming and Tammi in cat bathing.
• D) Horace has an absolute advantage in cat bathing and Tammi in dog grooming.

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Definitions:

Process Operation

The stages or steps taken in a manufacturing or service delivery process, often involving the transformation of materials or information.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of a full finished good for inventory valuation.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.

Direct Labor

The wages and other costs for workers who are directly involved in the production of goods or the delivery of services.