What Is True of Many Industry Estimates of the Costs

question 15

Multiple Choice

What is true of many industry estimates of the costs associated with pollution control regulations?

• A) They are almost always more (and often much more)than the actual costs of complying.
• B) They typically underestimate the costs,resulting in the need for government assistance.
• C) They are usually reasonably accurate.
• D) They are usually quite similar to the estimates provided by environmental groups.
• E) They are typically quite similar to the governmental estimates.

---

Definitions:

Fixed Manufacturing Expenses

Costs that do not change with the level of production, such as rent, salaries, and depreciation of equipment.

Selling and Administrative Expenses

Costs related to the selling of products and the administration of the business, not directly tied to production.

Constrained Resource

A limited resource in a production or project management environment that can restrict output or throughput.

Current Profitability

A measure of a company's financial performance in the short term, often evaluating the income it generates over a recent period against the expenses.