-The Above Table Shows Production Points on Sweet-Tooth Land's Production

question 179

Multiple Choice

-The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?

• A) 30 cans of cola per chocolate bar
• B) 10 cans of cola per chocolate bar
• C) 3 cans of cola per chocolate bar
• D) 1/3 can of cola per chocolate bar

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Definitions:

Percentage-of-Completion

An accounting method used to recognize revenue and expenses of long-term projects proportionally to the project's completion level.

Revenue Recognition

The accounting principle that dictates the conditions under which revenue is recognized or recorded, primarily focusing on the timing and amount.

Percentage-of-Completion

An accounting method recognizing revenues and expenses of long-term contracts as a percentage of work completed.

Transfer Pricing

The price charged when two parts of the same multinational corporation, often the parent company and a subsidiary in another country, engage in trade with one another.