If the Price of Good X Is $100 and the Price

question 32

Multiple Choice

If the price of good X is $100 and the price of good Y is $25,it follows that the relative price of one unit of good X is _____________ unit(s) of good Y.

• A) 1.00
• B) 4.00
• C) 0.25
• D) 1.33
• E) 0.75

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated cost of manufacturing overhead and an allocation base, used to assign overhead costs to products.

Direct Labour-hours

The total time spent by workers who are directly involved in the manufacturing or assembly of a company’s products.

Cost of Goods Sold

The total cost directly attributed to the production of goods that were sold, including materials, labor, and overhead.