Who Actually Pays for an Adjustment That Remedies an Externality

question 153

Multiple Choice

Who actually pays for an adjustment that remedies an externality will be determined by

• A)who is the weakest bargainer.
• B)a commercial adjudicator.
• C)the city mayor.
• D)a private judge.
• E)who has the property rights.

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products and services based on the activities they require.

Direct Labor-Hours

Cumulative working time of employees who are directly engaged in producing goods.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities required to produce them.