-Refer to the Graph in the Exhibit

question 27

Multiple Choice

$$\begin{array} { | c | c | c | c | } \hline { \text { Poland } } & & { \text { Canada } } \\\hline \begin{array} { c } \text { tonnes of } \\\text { wheat per day }\end{array} & \text { t-shirts per day } & \begin{array} { c } \text { tonnes of } \\\text { wheat per day }\end{array} & \text { t-shirts per day } \\\hline 20 & 0 & 100 & 0 \\\hline 18 & 80 & 90 & 100 \\\hline 16 & 160 & 80 & 200 \\\hline 14 & 240 & 70 & 300 \\\hline 12 & 320 & 60 & 400 \\\hline 10 & 400 & 50 & 500 \\\hline 8 & 480 & 40 & 600 \\\hline 6 & 560 & 30 & 700 \\\hline 4 & 640 & 20 & 800 \\\hline 2 & 720 & 10 & 900 \\\hline 0 & 800 & 0 & 1000 \\\hline\end{array}$$
-Refer to the graph in the exhibit.What is the opportunity cost of 1 tonne of wheat in Canada?  

• A) 1/10 of a t-shirt 
• B) 1/3 of a t-shirt 
• C) 1/2 of a t-shirt 
• D) 10 t-shirts

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Definitions:

Indirect Materials

Materials used in the support of the production process that are not easily traced to specific products, essential for maintaining production equipment.

Favorable Variance

A financial term indicating that actual costs were less or actual revenues were more than what was budgeted or forecasted.

Variable Cost

Variable costs vary directly with the level of production output, including expenses like raw materials and direct labor.

Flexible Budget

A dynamic budget that recalibrates based on fluctuations in operational volume or activity.