Figure 2-3 -Refer to Figure 2-3.Carlos Vanya Grows Tomatoes and Strawberries on and Strawberries

question 24

Multiple Choice

Figure 2-3
-Refer to Figure 2-3.Carlos Vanya grows tomatoes and strawberries on his land.A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

• A)Graph A
• B)Graph B
• C)Graph C
• D)either Graph A or Graph B
• E)either Graph B or Graph C

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Definitions:

Job-order Costing

A cost accounting system that accumulates manufacturing costs separately for each job.

Direct Labour Cost

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead costs that is assigned to each unit of production, based on a predetermined rate.

Job-order Costing

An accounting method that tracks costs individually for each job, rather than within set periods.