Scenario: Mike and John Work as Waiters in a Restaurant

question 30

Multiple Choice

Scenario: Mike and John work as waiters in a restaurant. Mike can efficiently wait on ten customers per hour, while John can efficiently wait on seven customers per hour. The restaurant also has a bar. If both of them work as bartenders, Mike is able to serve nine customers per hour and John is able to serve ten customers per hour.
-Refer to the scenario above.Which of the following statements is true in this case?

• A) Mike has a comparative advantage in waiting tables.
• B) John has a comparative advantage in waiting tables.
• C) John has an absolute advantage in waiting tables.
• D) Mike has an absolute advantage in bartending.

Analyze the impact of manufacturing variances on production costs and efficiency.

Calculate the standard amount of materials allowed for the actual output.

Analyze labor efficiency variances to assess labor productivity.

Evaluate labor rate variances to understand impacts on labor costs.

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Definitions:

Audit Report

A document prepared by an auditor which expresses an opinion on whether financial statements are presented fairly, in all material aspects, in accordance with the applicable financial reporting framework.

Financial Reporting

The method of generating reports that reveal a company's financial condition to its managers, investors, and governmental agencies.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.