Use the Following Scenario to Answer the Following Questions

question 129

Multiple Choice

Use the following scenario to answer the following questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year.Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Jameson's opportunity cost of producing one pound of cheese is ________ house(s) .

• A) 1/500 of a
• B) 1/250 of a
• C) 1/10 of a
• D) 250
• E) 500

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Definitions:

Subsidiary Inventory Ledger

The subsidiary ledger containing individual accounts for items of inventory.

Inventory Levels

The quantity of products or materials a company has in stock at any given time.

Physical Inventory

The process of counting by hand all physical inventory items in a business at a specific point in time, to ensure accuracy of accounting records.

LIFO

"Last In, First Out," an inventory valuation method where the last items purchased are the first ones sold.