If Jane Can Produce 3 Pairs of Shoes Hourly, While

question 104

Multiple Choice

If Jane can produce 3 pairs of shoes hourly, while Bob can produce 2, then one can infer that the __________ advantage belongs to __________.

• A) absolute; Jane
• B) comparative; Jane
• C) comparative; Bob
• D) comparative and absolute; Jane

---

Definitions:

Process Costing

A costing method used in manufacturing where costs are assigned to batches or production runs, typically suitable for standardized products.

Weighted-Average Method

An inventory costing method that assigns a cost to inventory items based on the weighted average of costs of similar goods available during the period.

Cost Reconciliation

The process of analyzing and adjusting the differences between reported costs and actual costs.

Process Costing

A method of cost accounting used for homogeneous products, where costs are averaged over the units to compute a cost per unit, typically used in industries like chemicals or food processing.