A Negative Externality Can Be Internalized by

question 65

Multiple Choice

A negative externality can be internalized by

• A)persuasion.
• B)the imposition of a tax.
• C)the assignment of property rights.
• D)a voluntary agreement.
• E)all of the above

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Definitions:

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.

Batch Setup

The process of preparing equipment and machinery for a specific batch of production, including configuration and adjustments.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, facilitating more accurate product or service costing.