Which of the Following Is Not a Private Cost

question 62

Multiple Choice

Which of the following is not a private cost?

• A) The health insurance costs a firm must pay for its employees.
• B) The pollution caused by a firm dumping its wastes into the river.
• C) The coffee pot that Jan dropped and broke this morning.
• D) The amount that a firm must pay for raw materials to make its product.

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Definitions:

Processing Department

A segment within a factory where a particular process, phase of production, or type of operation is carried out.

Work In Process

Units of product that are only partially complete and will require further work before they are ready for sale to the customer.

Total Amount

The sum total of all quantities or values, usually referring to the final sum on invoices, bills, or financial statements.

Cost Reconciliation Report

A report that reconciles estimated or budgeted costs with actual costs, commonly used in project management and job costing.