Roommates Sarah and Zoe Are Hosting a Halloween Party and Have

question 281

Multiple Choice

Roommates Sarah and Zoe are hosting a Halloween party and have to make food for their guests and costumes for themselves.To finish both tasks as quickly as possible,Sarah and Zoe know that each of them should focus on just one task,but they don't know who should do what.Sarah and Zoe should determine which roommate:

• A)has the absolute advantage in cooking.
• B)has the comparative advantage in cooking.
• C)can cook the most in a given amount of time.
• D)can complete the cooking in the least amount of time.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies by recording such profits in proportion to their ownership stake in the invested company.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries to create a single set of financials.

Intra-Entity Transfer

Transactions of goods, services, or funds that occur between departments or divisions within the same company or organization.

Consolidation

The process of combining financial statements of a parent company with its subsidiaries to present as if the group of companies is a single economic entity.