Table 92 -Refer to Table 9

question 85

Multiple Choice

Table 9.2
$$\begin{array} { | l c | } \hline \text { Cost of machine } & \$ 300,000 \\\hline \text { Arnual autput from mechine } & \$ 35,000 \\\hline \text { Arnual interett rate on loans } & 9 \% \\\hline\end{array}$$
-Refer to Table 9.2. If a firm purchases the machine by taking out a one-year loan, how much interest will the firm have to pay?

• A) $301,500
• B) $30,150
• C) $270,000
• D) $27,000
• E) $9,000

Interpret production and trade data from various tables and figures to determine efficient production combinations and trade opportunities.

Analyze the effects of resource allocation on production outputs, understanding how different allocations can lead to changes in total production.

Apply the concept of opportunity cost in the context of trade and production decisions.

Recognize the relationship between specialization and economic efficiency, and how specialization leads to increased total output.

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Definitions:

Weighted-Average Method

A cost accounting method that calculates the cost per unit of inventory by considering both the cost of existing inventory and the cost of new inventory acquired, weighted by their respective quantities.

Process Costing System

is used in manufacturing where production is continuous, and costs are assigned to processes or departments, then averaged over units produced.

Work in Process

Inventory that includes goods that are in the process of being manufactured but are not yet complete.

Materials

Raw resources or inputs used in the manufacturing or production process to create goods and services.