Table 24 Table 2

question 84

Multiple Choice

Table 2.4 Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.Which of the following statements is true?

• A)Haley has a comparative advantage in making both products.
• B)Serena has a comparative advantage in making both products.
• C)Haley has a comparative advantage in making bracelets and Serena in making necklaces.
• D)Haley has a comparative advantage in making necklaces and Serena in making bracelets.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Costing Inventories

The process of determining the value of inventory, including raw materials, work-in-progress, and finished goods, for financial reporting.

Homogeneous Items

Items that are of the same kind or nature, possessing common features or characteristics.

Inventory Cost Formula

The method used to determine the cost of goods sold, such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or Average Cost method.