External Costs Include ______________

question 7

Multiple Choice

External costs include ______________

• A)wages
• B)environmental damage
• C)worker's compensation and insurance
• D)utilities
• E)raw materials

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Definitions:

Level of Activity

A measure of the volume of work or production capacity a business entity engages in over a specific period.

Employee Salaries and Wages

Payments made to employees for their labor, including both fixed salaries and variable wages.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate forecasting and planning.

Planning Budget

A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.