Answer:
The correct answer is letter "A": true.
Explanation:
Companies using the process costing approach accumulate and assign costs to mass production of a good. Instead, job order costing assigns costs of manufacturing to individual units of production. In process costing, the costs are reported from one department involved in manufacturing to another following the production process. On the other hand, in job order costing, the costs are reported in job cost cards as they are being used.
Answer:
b. 6 pairs of jeans per crate of olives; and
c. 4 pairs of jeans per crate of olives
Explanation:
Olives Jeans Trade off Ratio (Olives:Jeans)
Spain 1 3 1:3 or 0.33:1 (1/3 = 0.33)
Denmark 1 11 1:11 or 0.09:1 (1/11= 0.09)
Spain & Denmark have less opportunity cost & hence comparative advantage than each other, in Olive & Jeans respectively.
Spain will export Olives to Denmark (importer). Denmark will export Jeans to Spain (Importer). Trade will be gainful if they get exchange ratio better than domestic exchange ratio.
- '2 jeans pairs per olive crate' not gainful trade ratio for Spain, as it is getting more i.e 3 jeans pair per olive crate at its own domestic ratio.
- '13 jeans per olive' not gainful for Denmark, as 0.07 = (1/13) olive per jeans is worse than its own domestic ratio i.e 0.09 = (1/11) olive per jeans
'4 jeans pairs per olive crate' is gaining trade ratio for:
- Spain: As it gets 4 i.e more than 3 pairs of jeans per olive crate
- Denmark : As it gets 0.25 = (1/4) i.e more than 0.09 olive crates per pair of jeans
'6 jeans pairs per olive crate' is gaining trade ratio for:
- Spain: As it gets 6 i.e more than 3 pairs of jeans per olive crate
- Denmark : As it gets 0.16 = (1/6) i.e more than 0.09 olive crates per pair of jeans
Both of them are gainful trade ratios, but:
- 1olive:4 jeans is more gainful for Denmark, as it is gaining relatively more than domestic exchange rate (0.25 is more > 0.09 than 4 > 3).
- 1olive:6jeans is more gainful for Spain as it is gaining relatively more than domestic exchange rate (6 is more > 3 than 0.16 > 0.09)
Answer:
Varies
Explanation:
They can go against natural resources.
