Suppose That a Worker in Country a Can Make Either

question 17

Multiple Choice

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Suppose Country B's population of workers increased to 600.We can say:

• A) Country B now possesses the absolute advantage in the production of both goods.
• B) Country B now possesses the absolute advantage in tablets only.
• C) Country B now has the comparative advantage in iPod production.
• D) Country B has no need to trade now.

Distinguish between different types of manufacturing costs, including factory overhead.

Recognize the three major cost components of a manufactured product.

Calculate the cycle time for a manufacturer using the proper formula.

Identify the classifications of inventory in a manufacturing company.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly labor rate.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected hourly wage.

Cash Account

An account that records all transactions involving cash, including receipts and payments.

Ending Balance

The amount of money remaining in a financial account at the end of a reporting period, after all transactions have been accounted for.