The Table Below Shows Units of Wheat and Cloth Produced

question 11

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-According to Table 20.1, the opportunity cost of producing one unit of wheat in the U.S. equals:

• A)half a unit of cloth.
• B)one-third of a unit of cloth.
• C)one-fourth of a unit of cloth.
• D)4 units of cloth.
• E)8 units of cloth.

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Definitions:

Direct Labor

The wages and benefits paid for labor that is directly involved in the production of goods or the provision of services.

Variable Selling

This term likely refers to variable selling expenses, which are costs that fluctuate with sales volume, such as commissions or shipping fees.

Administrative Expense

Costs related to the general operation of a business, such as office supplies, salaries of administrative staff, and utilities, but not linked directly to production or sales.

Budgeted Selling Price

The anticipated amount for which a product or service is expected to sell, as determined during the budgeting process.