In One Week,Mohammed Can Knit 5 Sweaters or Bake 240

question 6

Multiple Choice

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Mohammed's opportunity cost of knitting one sweater is:

• A)480 cookies.
• B)240 cookies.
• C)48 sweaters.
• D)1/48 of a cookie.
• E)48 cookies.

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Definitions:

Standard Cost Sheet

A document that outlines the expected costs associated with the production of a product, including materials, labor, and overhead.

Labor Price Variance

The difference between the actual cost of direct labor and the standard cost of labor that was expected during a period.

Labor Quantity Variances

The difference between the actual hours worked and the standard hours expected for the actual production level, valued at the standard labor rate.

Variance Report

A document that compares actual financial performance to budgeted or planned financial performance, identifying differences.