Table 3-2 -According to Table 3-2:
A)Lee Has an Absolute Advantage in unit

question 77

Multiple Choice

Table 3-2
$\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\\\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \\\hline \text { Lee } & 6 & 10 & 15 & 4 \\\hline \text { John } & 3 & 20 & 15 & 4\\\hline\end{array}$
-According to Table 3-2:

• A)Lee has an absolute advantage in neither goods, and John has a comparative advantage in butter
• B)Lee has an absolute advantage in rice, and John has a comparative advantage in butter
• C)Lee has an absolute advantage in rice, and John has a comparative advantage in neither goods
• D)Lee has an absolute advantage in neither goods, and John has a comparative advantage in rice

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Definitions:

Work in Process

Inventory items that are partially completed in manufacturing or production but not yet ready for sale.

Units Transferred Out

The term used in cost accounting to refer to products or goods that have been completed and moved out of the work-in-process accounts into finished goods inventory.

Total Cost

The aggregate amount of expenses incurred by a company to produce goods or services, including fixed, variable, and semi-variable costs.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, incorporating all units available for sale.