If an Economic Action Generates More Costs Than Benefits, the Action

question 172

Multiple Choice

If an economic action generates more costs than benefits, the action

• A) by definition increases the nation's economic welfare.
• B) should not be undertaken from an efficiency standpoint.
• C) should be subsidized by the government in order to make sure that it is undertaken.
• D) is desirable from a public welfare standpoint even though many individuals will be harmed.

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Definitions:

Job-Order Costing

A costing method that assigns manufacturing costs to each individual product or batch, ideal for custom or specialized goods.

Work In Process

Inventory that includes goods partially completed in the manufacturing process but not yet ready for sale.

Storeroom

A room or area used for storing materials, tools, and equipment, typically within a manufacturing or production facility.

Job-Order Costing

A technique in accounting aimed at recording expenses and assessing the income potential of single tasks or collections.