Which of the Following Is an Example of an Economic

question 39

Multiple Choice

Which of the following is an example of an economic barrier to entry?

• A)Patent.
• B)Economies of scale.
• C)Licensing fee.
• D)Copyright.
• E)Sole ownership of a resource.

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to assign overhead costs to products or services.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, for allocating overhead costs more accurately to products or services.

Batch-level Activities

Operations or tasks that are performed for each batch of products, regardless of the size of the batch.

Units

Generally refers to the quantitative measure of output or production in business operations.