-Refer to the Above Table

question 184

Multiple Choice

-Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a computer in the United States is ________ while the opportunity cost of producing a computer in Mexico is ________.

• A)0.8 bicycle; 2 computers
• B)2.5 computers; 0.25 bicycle
• C)0.5 bicycle; 0.2 bicycle
• D)2 bicycles; 5 bicycles

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Definitions:

Inventory Costing Method

A method used to assign costs to inventory, affecting how costs are reported in the financial statements.

Year-End Purchase

Acquisitions or purchases made by a company close to the end of its fiscal year, often impacting the annual financial statements.

LIFO Cost of Goods Sold

An inventory costing method where the last items placed in inventory are considered the first ones sold, affecting the cost of goods sold during a period.

FIFO Inventory Costing

A method of inventory valuation where the cost of goods sold is based on the oldest inventory prices, which stands for "First In, First Out."