Which of the Following Is Most Likely a Private Good

question 22

Multiple Choice

Which of the following is most likely a private good?

• A)Bicycles.
• B)National defense.
• C)Sidewalks.
• D)The administration of justice.

Understand the concept and calculate the residual income for a division.

Understand the principle of exceptions and its application in managerial focus and decision-making.

Grasp the concept that standard costs should be revised in response to labor rate changes or new union contracts.

Identify standards as performance goals for evaluating and controlling operations.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Operating Activities

Activities that relate directly to the primary revenue-generating operations of an organization, detailed in the cash flow statement.

Collections

The process of recovering the amounts owed to a company by its debtors or the grouping of items or debts for processing.

Interest

The charge for borrowing money or the return on investment for funds deposited, typically expressed as an annual percentage of the principal.