Exhibit 15-4 Coffee and Tea Output (Pounds Per Hour)

question 21

Multiple Choice

Exhibit 15-4 Coffee and tea output (pounds per hour)

As shown in Exhibit 15-4, compared to Brazil, China has a comparative advantage in the production of:

• A) coffee.
• B) tea.
• C) both coffee and tea.
• D) neither coffee nor tea.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected, multiplied by the standard cost per unit.

Food And Supplies

Items necessary for operating a business, such as a restaurant or hotel, including both edible products and necessary materials.

Spending Variance

The difference between the actual amount spent and the budgeted or expected amount in a given period, often related to costs or expenditures.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, indicating how much more or less was spent on materials than anticipated.