​Exhibit 2-10 Refer Exhibit 2-10

question 41

Multiple Choice

​Exhibit 2-10 Refer Exhibit 2-10. Person A has the comparative advantage in the production of _____________ and person B has the comparative advantage in the production of __________________.

• A)X; Y
• B)Y; X
• C)neither good X nor good Y; neither good X nor good Y
• D)both good X and good Y; neither good X nor good Y
• E)​neither good X nor good Y; both good X and good Y

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or purchased items are recorded as sold first, affecting cost of goods sold and inventory value.

FIFO Inventory Method

An accounting method for valuing inventory that assumes the first items purchased are the first to be sold.

Cost Of Goods Sold

The total cost directly associated with producing goods that have been sold, including materials and labor.

Days' Sales

Often part of larger financial metrics, this term by itself is unclear without additional context such as Days' Sales Outstanding (DSO).