The Table Below Shows Units of Wheat and Cloth Produced

question 15

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries.
Table 20.1

-According to Table 20.1, the opportunity cost of producing wheat in India equals:

• A) half a unit of cloth.
• B) one-third of a unit of cloth.
• C) 2 units of cloth.
• D) 4 units of cloth.
• E) one-fourth of a unit of cloth.

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Definitions:

Net Income

A company's remaining earnings after deducting all expenses and taxes from its revenue.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold.

Balance Sheet

The balance sheet is a financial statement that shows a company’s financial position by detailing its assets, liabilities, and shareholders' equity at a specific point in time.

LIFO

Last-In, First-Out, an inventory valuation method where the goods purchased last are the first to be sold.