Absolute Advantage Is

question 37

Multiple Choice

Absolute advantage is

• A)the ability to produce more of a good or service than competitors when using the same amount of resources.
• B)the ability to produce higher quality goods compared to one's competitors.
• C)the ability to produce a good or service at a higher opportunity cost than one's competitors.
• D)the ability to produce more of a good or service than competitors that have fewer resources.

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Definitions:

Allocation Method

A method used in accounting and finance to distribute costs or revenues among different departments, products, or projects based on certain criteria.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant for allocating indirect costs to products.

Allocation Base

A factor used to distribute costs among different departments, products, or activities in a systematic and rational manner.

Budgeted Plantwide Overhead

An estimate of the total overhead costs to be allocated across the whole plant or company, used for budgeting and costing purposes.