If Compared to Akerji, Bunyan Can Produce Palm Oil by Giving

question 104

Multiple Choice

If compared to Akerji, Bunyan can produce palm oil by giving up less of an alternative good
Then, Bunyan has

• A) a higher foreign-trade multiplier than Akerji.
• B) a lower foreign-trade multiplier than Akerji.
• C) an absolute advantage in palm oil production.
• D) a comparative advantage in palm oil production.

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead involved in converting raw materials into finished products.

Weighted-Average Method

A cost accounting method that assigns an average cost to each unit of inventory by weighting the costs of similar items.

Work in Process Inventory

The cost of partially finished goods that are still in the production process at the end of an accounting period.

Units Completed

is a measure of the number of finished units produced within a given period, reflecting the productivity or output level.