Table 24 Table 2

question 84

Multiple Choice

Table 2.4 Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.Which of the following statements is true?

• A)Haley has a comparative advantage in making both products.
• B)Serena has a comparative advantage in making both products.
• C)Haley has a comparative advantage in making bracelets and Serena in making necklaces.
• D)Haley has a comparative advantage in making necklaces and Serena in making bracelets.

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Definitions:

Materials Quantity Variance

The variance between the real amount of materials consumed during manufacturing and the anticipated amount, as per norms.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the total cost of production.

Standard Cost Card

A document that lists the standard costs associated with producing a unit of product, including materials, labor, and overhead.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salaries of production supervisors and depreciation of factory equipment.