Using All Available Resources,if a Farmer Can Produce Either 85

question 180

Multiple Choice

Using all available resources,if a farmer can produce either 85 cantaloupes or 70 watermelons,what is the opportunity cost of 1 cantaloupe to the farmer?

• A)0.82 watermelons
• B)1.21 watermelons
• C)1.50 watermelons
• D)2.00 watermelons

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Definitions:

Cost Recovery Method

An accounting method where revenues are not recognized until all costs have been recovered.

Real Estate Sales

Transactions involving the transfer of ownership rights in property or land from one party to another, typically facilitated by agents or brokers.

Contra-Asset Account

A contra-asset account is an account used in a ledger to reduce the value of a related account. It has a credit balance and is used to adjust the value of an asset account to its net value.

Consignment-In

A transaction arrangement where goods are placed in the care of another party to sell, but ownership and title remain with the supplier until sale.