The Accompanying Tables Give Production Possibilities Data for Gamma and Sigma

question 20

Multiple Choice

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities
$\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\\hline \text { Tea } & 120 & 90 & 60 & 30 & 0 \\\hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$ Sigma's production possibilities
$\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\\hline \text { Tea } & 40 & 30 & 20 & 10 & 0 \\\hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$ What are the limits of the terms of trade between Gamma and Sigma?

• A) 1 tea = 2 pots to 1 tea = 6 pots
• B) 1 tea = 3 pots to 1 tea = 6 pots
• C) 1 tea = 2 pots to 1 tea = 3.5 pots
• D) 1 tea = 1 pot to 1 tea = 3 pots

Explain the use of subsidiary ledgers (e.g., materials ledger, finished goods ledger) in cost accounting.

Understand the process of allocating costs using different bases (machine hours, direct labor hours, etc.).

Understand and identify various types of costs in business organizations and classify them as product or period costs.

Grasp the concept and use of job order costing in both service and manufacturing settings, including the similarities and differences.

---

Definitions:

Trade Surpluses

A condition in international trade where a country exports more goods and services than it imports.

Balance Of Payments Surpluses

A situation where the total amount of money coming into a country from abroad exceeds the total amount of money leaving the country.

Account Surpluses

Refers to the positive balance of the funds in an account, or situations where revenues exceed the expenditures in fiscal accounts.

Trade Deficit

A situation where a country imports more goods and services than it exports.