The Table Outlines the Production Possibilities of Italia and Slavia

question 118

Multiple Choice

The table outlines the production possibilities of Italia and Slavia for food and clothing.Use it to answer the following question(s) .
Table 17-1

-Refer to Table 17-1.What is the opportunity cost of producing 1 unit of food in Italia?

• A)one-half of a unit of clothing
• B)1 unit of clothing
• C)2 units of clothing
• D)5 units of clothing

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Definitions:

Periodic Inventory System

An inventory system where the count of goods and the cost of goods sold are determined at specific intervals, such as annually.

Purchases Discounts

Reductions in price given by suppliers for early payment or volume purchases.

Freight In

The cost associated with the transportation of goods from the supplier to the receiver, which is typically included in the inventory cost.

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory in real-time through the use of technology, such as barcode scanners.