If It Is Impossible to Prevent Someone from Benefiting from a Good

question 125

Multiple Choice

If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is

• A) nonrival.
• B) rival.
• C) nonexcludable.
• D) excludable.

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Definitions:

Direct Labor Cost

The expense incurred by a company to pay workers who are directly involved in the production of goods or services.

Cost of Goods Manufactured

The total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.

Underapplied Manufacturing Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are more than the actual overhead expenses incurred.