Below Is Production Possibilities Data for the Countries of Mental

question 121

Multiple Choice

Below is production possibilities data for the countries of Mental and Etheric.

-Refer to the information above to answer this question.What is the opportunity cost of one unit of rice cakes in Etheric?

• A)0.375 units of soya milk.
• B)1.33 units of soya milk.
• C)2.67 units of soya milk.
• D)20 units of rice cakes.
• E)40 units of rice cakes.

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Definitions:

Activity-based Costing

A cost allocation technique that assigns overhead and indirect costs to relevant products and services based on the activities they demand.

Machining

The process of shaping, cutting, or altering a material using machines or tools, often used in the manufacturing of parts or components.

Activity-based Costing

Activity-based costing (ABC) is a method of assigning overhead and indirect costs to specific products or activities based on their usage.

Machining

The process of cutting, shaping, or removing material from a workpiece using machines or tools, often for manufacturing purposes.