Table 3-1 Assume That Andia and Zardia Can Switch Between Producing Wheat

question 270

Multiple Choice

Table 3-1
Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.

-Refer to Table 3-1.Assume that Andia and Zardia each has 60 minutes available.If each person spends all his time producing the good in which he has a comparative advantage,then total production is

• A) 3 bushels of wheat and 6 pounds of beef.
• B) 3.5 bushels of wheat and 5.5 pounds of beef.
• C) 4 bushels of wheat and 5 pounds of beef.
• D) 7 bushels of wheat and 11 pounds of beef.

Identify the impact of different cost pools on product costs and margins.

Understand how ABC allocates costs to customer-related activities.

Calculate the overhead cost assigned to products and customers under ABC.

Analyze the impact of ABC on product pricing and margins.

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Definitions:

Earnings Per Share

This is a financial ratio that measures the amount of net income earned per share of stock owned.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets, calculated by dividing total revenue by average total assets.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in utilizing its assets to generate sales or income, calculated by dividing net sales by the average total assets.

Dividends Per Share

The total dividends declared by a company for each share of its stock.