In 1903 When Air Pollution from a Montana Smelter Owned

question 62

Multiple Choice

In 1903 when air pollution from a Montana smelter owned by the Anaconda Smelting Company destroyed grass and killed some cattle owned by ranchers downwind from the smelter, the ranchers sued for damages and the court

• A) ordered the company to pay for the damages caused by its smelter.
• B) held the company liable for any future damages caused by its omissions.
• C) recognized that the company would pollute less when it was made accountable for the damage caused by its omissions.
• D) all of the above.

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Definitions:

Activity Level

The volume of work or output produced, often used in costing and budgeting processes to measure levels of operations.

Total Cost

The complete cost of production, combining all costs of inputs and expenditures related to producing something, including direct, indirect, fixed, and variable costs.

Miles Driven

A measure often used in various contexts, such as accounting for vehicle costs, determining travel expenses, or evaluating performance in logistics and transportation.

Variable Costing

A costing method in which variable production costs are included in product costs, and fixed production costs are treated as period expenses.