An Example of a Period Cost Is

question 180

Multiple Choice

An example of a period cost is

• A)president's salary.
• B)insurance on factory equipment.
• C)property taxes on factory building.
• D)wages of factory custodians.

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Definitions:

Marginal External Cost

The additional cost imposed on society that is not accounted for by the producer as output increases.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service, including both the private costs and any external costs.

Oil Refinement

The process of transforming crude oil into useful products like gasoline, diesel, and jet fuel through various physical and chemical treatments.

Pollution Fee

A financial charge applied to entities that emit pollutants, intended to discourage environmental pollution by making it economically costly.