Table 7-3 Mateo and Celeste Produce Custom Saddles and Spurs.Table

question 133

Multiple Choice

Table 7-3
Mateo and Celeste produce custom saddles and spurs.Table 7-3 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 7-3.Select the statement that accurately interprets the data in the table.

• A)Mateo has an absolute advantage in making saddles and Celeste has an absolute advantage in making spurs.
• B)Mateo has an absolute advantage in making spurs and Celeste has an absolute advantage in making saddles.
• C)Mateo has an absolute advantage in making spurs.
• D)Celeste has an absolute advantage in making saddles.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Actual Inventory

The physical count of products or materials a company has available at a specific point in time.

Ending Inventory

Ending inventory is the value of goods still available for sale by a company at the end of an accounting period, calculated as the sum of the beginning inventory plus purchases minus cost of goods sold.

LIFO

"Last In, First Out," an inventory costing method where the most recently produced or acquired items are sold or used first, potentially reducing taxes during inflation.