Use the Following to Answer Questions

question 241

Multiple Choice

Use the following to answer questions :
-(Figure: Wine and Wheat) Look at the figure Wine and Wheat. The opportunity cost of moving from producing ONLY wheat to producing at point D is _____ tons of wheat.

• A)3
• B)6
• C)9
• D)15

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Definitions:

Bill of Lading

A legal document issued by a carrier to acknowledge receipt of cargo for shipment, acting as a contract and a receipt.

Direct Labor Cost

The total cost of all the labor work directly involved in the production of goods or the delivery of services.

Manufacturing Overhead-Applied

The allocation of manufacturing overhead costs to specific products or job orders based on a predetermined overhead rate.

Annual Overhead

The total expenses incurred by a business to operate over the course of a year, excluding direct labor and materials costs.