Generally, Negative Externalities Result in

question 155

Multiple Choice

Generally, negative externalities result in

• A)too much of a good being produced.
• B)the socially optimal output of a good being produced.
• C)too little of a good being produced.
• D)either a or c
• E)any of the above

---

Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that represents the cost assigned to both completed units and partially completed units during a specific period.

Materials Cost

The expense incurred by a company for the raw materials used in the production of its goods.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all items.

Ending Work

The work or tasks that are in the process of being completed at the end of a given period, often used in the context of project management or production.