The Following Table Shows the Units of Output a Worker

question 78

Multiple Choice

The following table shows the units of output a worker can produce per month in country A and country B.
The opportunity cost of 1 unit of electronics in country A is

• A)4 units of food.
• B)3 units of food.
• C)2 units of food.
• D)all of these.

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Definitions:

Manufacturing Overhead

Manufacturing overhead encompasses all the indirect costs associated with producing goods, such as utilities, depreciation, and salaries of support staff, that cannot be directly traced to specific products.

Direct Labor

The compensation given to workers directly engaged in creating goods or services.

Direct Materials

Rephrase: The raw materials or components directly incorporated into a finished product, impacting the product's production process.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly tied to production.