Tom and Jerry Have One Day to Work, but Two

question 140

Multiple Choice

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. The opportunity cost of building one table is _____ for Tom and _____ for Jerry. Therefore, Tom should specialize in _____.

• A) 4 chairs; 2 chairs; chairs
• B) 16 chairs; 14 chairs; chairs
• C) 4 chairs; 2 chairs; tables
• D) 16 chairs; 14 chairs; tables

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Definitions:

Onscreen Journal

A digital ledger or log used in accounting software to record financial transactions, accessible through a computer or mobile device interface.

Onscreen Forms

Digital or electronic forms displayed on a computer or device screen, facilitating data entry, submission, or information requests.

Adjusting Entries

Entries in journals completed at the finishing point of an accounting interval to apportion profits and outlays to the session they rightfully took place.

Updating QBO Lists

The process of revising or adding new information to lists within QuickBooks Online, such as customer or vendor lists.