Which Is an Example Involving an External Benefit

question 134

Multiple Choice

Which is an example involving an external benefit?

• A) the pollution of a stream
• B) a person littering a public highway
• C) air pollution
• D) a nice garden in front of someone's house

---

Definitions:

Finished Goods Inventory

The completed products that are ready to be sold but have not yet been sold to customers.

Raw Materials Purchases

The acquisition of the basic materials and components needed for the production of goods.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Cash Collections

The process of gathering all cash receipts and payments, including those from customers and operational activities, within a particular period.