Table 19-5 Madison and Austin Own Cafe Ole

question 357

Multiple Choice

Table 19-5
$\begin{array}{|l|l|l|}\hline & \text { Empanadas } & \text { Tacos } \\\hline \text { Madison } & 30 & 50 \\\hline \text { Austin } & 24 & 32 \\\hline\end{array}$ Madison and Austin own Cafe Ole'. Table 19-5 lists the number of empanadas and tacos Madison and Austin can each make in one hour.
-Refer to Table 19-5.Select the statement that accurately interprets the data in the table.

• A) Madison has a greater opportunity cost than Austin for making tacos.
• B) Madison's opportunity cost for making tacos is less than Austin's.
• C) Austin has a greater opportunity cost than Madison for making empanadas.
• D) Austin's opportunity cost for making tacos and making empanadas are both greater than Madison's.

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Definitions:

Investigation

The systematic examination or inquiry into something to establish facts and reach new conclusions.

Materials Price Variance

It measures the difference between the actual cost of materials used in production and the expected (standard) cost.

Price Standard

A predetermined cost that management believes should be paid for an item, often used in budgeting and variance analysis.

Pounds

A unit of mass in the imperial system, symbolized as lb.