Table 3-6 Assume That Hilda and Carlos Can Switch Between Producing Quilts

question 285

Multiple Choice

Table 3-6
Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate.

-Refer to Table 3-6.The opportunity cost of 1 dress for Carlos is

• A) 1/2 quilt.
• B) 2 hours of labor.
• C) 2 quilts.
• D) 45 hours of labor.

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Definitions:

Units

The measures or quantities of a product, service, or resource, which are accounted for in business transactions.

Activity Variance

The difference between the actual cost incurred for an activity and the expected cost, based on the budgeted or standard amount.

Direct Labor

The wages paid to workers who are directly involved in the production of goods or the provision of services.

Units

Units typically refer to the individual items or quantities of a product or service produced or sold by a business.