Michael Can Score 30 Points Per Game and Scottie Can

question 101

True/False

Michael can score 30 points per game and Scottie can score 22 points per basketball game. Michael has both an absolute and a comparative advantage over Scottie in scoring.

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Definitions:

Job Order Cost System

A type of cost accounting system that provides for a separate record of the cost of each quantity of product (job) that is manufactured.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished goods.

Direct Materials

Raw materials that can be directly associated with the production of goods or services and are considered a variable cost.

Equivalent Units

A concept in cost accounting used to convert the quantity of partially completed goods into a full equivalent number based on their stage of completion.