When There Are External Costs,the Government Can Encourage People to Take

question 49

True/False

When there are external costs,the government can encourage people to take action that benefit other people.

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Definitions:

Standard Costing

An accounting method that uses standard costs for cost control and financial reporting.

Variable Manufacturing Overhead

Manufacturing overhead costs that fluctuate with the level of production activity.

Overhead Rate Variance

The difference between the actual overhead costs incurred and the standard overhead costs assigned to production.

Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (budgeted) cost of those materials.