Table 2-19 Table 2-19 Shows the Output Per Month of Month

question 261

Multiple Choice

Table 2-19
Table 2-19 shows the output per month of two people, Wilma and Betty. They can either devote their time to making marble statues or making marble benches.
-Refer to Table 2-19. What is Wilma's opportunity cost of making a statue?

• A) 1/3 of a bench
• B) 3 benches
• C) 6/7 of a statue
• D) 1/2 of a bench

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Definitions:

Bill Of Activities

A detailed list of all the actions or activities that are required to complete a project or produce a product.

Activity Driver

An activity driver is a factor that influences the performance or cost of activities within a business, helping to accurately allocate costs based on actual consumption or usage.

Activity-based Costing System

An accounting approach that allocates costs to products based on the activities needed for their production, providing more accurate cost information.

Machine Setups

Refers to the configuration and preparation of machines before production runs, which can affect efficiency and downtime.