Use the Table Below to Answer the Following Questions

question 62

Multiple Choice

Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y.
-Refer to Table 2.1.1.The opportunity cost of increasing the production of X from 8 to 12 units is

• A)4 units of X.
• B)4 units of Y.
• C)8 units of Y.
• D)12 units of Y.
• E)16 units of Y.

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Definitions:

Product Warranty Payable

A liability account that represents the amount a company expects to pay to repair or replace products under warranty.

Matching Concept

A fundamental accounting principle that requires expenses to be recorded in the same period as the revenues they help generate.

Product Warranty Expense

The cost associated with repairing or replacing products under warranty, recognized by companies to cover future warranty claims.

Warranty Repairs

Services offered for free by a manufacturer or seller to correct defects or malfunctions within a certain period after purchase.