Table 19-1 Linda and Sandy Own the Preppy Puppy, a Dog Grooming

question 438

Multiple Choice

Table 19-1
$\begin{array}{|c|c|c|}\hline & \text { Bathing } & \text { Grooming } \\\hline \text { Linda } & 60 & 20 \\\hline \text { Sandy } & 50 & 25\\\hline\end{array}$ Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 19-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
-Refer to Table 19-1.Select the statement that accurately interprets the data in the table.

• A) Sandy has a comparative advantage in dog grooming.
• B) Linda has a comparative advantage in dog grooming.
• C) Linda has a comparative advantage in dog grooming and dog bathing.
• D) Sandy has a comparative advantage in dog bathing.

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Definitions:

Retail Inventory Method

The retail inventory method is an accounting practice that estimates the ending inventory balance of a retailer by using the cost to retail price ratio.

Physical Count

The process of manually counting inventory items to verify quantities and ensure the accuracy of records.

Most Current Prices

Refers to the latest available prices of goods, services, or assets, often used in the evaluation of market trends or valuation assessments.

Ending Inventory

The total value or quantity of goods available for sale at the end of an accounting period, calculated by adding any purchases to the beginning inventory and subtracting sold goods.