If They Produce Only Hamburgers,in a Single Day Sarah Can

question 178

Multiple Choice

If they produce only hamburgers,in a single day Sarah can produce 10 hamburgers,and Abe can produce 5 hamburgers.If they make milkshakes only,in a single day Sarah can produce 10 milkshakes,and Abe can produce 4 milkshakes.Therefore,_____ has an absolute advantage and a comparative advantage in making _____.

• A)Sarah;hamburgers.
• B)Sarah;milkshakes.
• C)Abe;hamburgers.
• D)Abe;milkshakes.

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Definitions:

Petty Cash Receipts

Petty cash receipts are documents that record the disbursements made from a petty cash fund for small, incidental expenses.

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold, affecting the costs reported in the financial statements.

Gross Profit

The difference between revenue and the cost of goods sold before deducting selling, general, and administrative expenses.

Net Income

The net income of a company, which is calculated by deducting all costs and taxes from the total revenue.