In an Hour, Andy Can Make Either 5 Pizzas or 12

question 356

Multiple Choice

In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. ________ advantage in making pizzas.

• A) Andy has an absolute
• B) Andy has a comparative
• C) Chris has a comparative
• D) None of the above answers is correct.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Minimum Required Rate Of Return

The lowest expected return on an investment deemed acceptable by an investor or manager, based on the level of risk and alternative opportunities.

Average Operating Assets

The average value of assets utilized in a business's operations, calculated over a specific period to assess performance.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and payroll, excluding the cost of goods sold.