Use the Following to Answer Question

question 119

Multiple Choice

Use the following to answer question:
-(Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum.The opportunity cost in Mexico of producing 105 units of petroleum is _____ units of machinery.

• A)35
• B)70
• C)90
• D)160

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Definitions:

Indirect Method

A method used in cash flow statements to adjust net income for transactions that do not involve cash, providing a view of cash flow from operating activities.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without recognizing services provided between service departments.

Sales

Revenue generated from goods or services sold by a company.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without considering services provided between service departments.