-Use the Above Table

question 288

Multiple Choice

-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing knives in country Alpha is ________, and the opportunity cost of producing knives in country Beta is ________.

• A)2 forks; 0.33 knife
• B)0.5 knife; 3 forks
• C)1.5 forks; 0.25 fork
• D)0.67 fork; 4 forks

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Definitions:

Operating Activities

Activities that relate to the core operations of a business, including the production, sales, and distribution of the business's goods or services.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments.

Direct Method

An accounting method used to allocate service department costs directly to producing departments without any intermediate allocation.

Operating Activities

Operating activities involve the primary, day-to-day activities that a company engages in to generate revenue, such as sales, provision of services, and production.