A Situation in Where the Costs of an Action Are

question 134

Multiple Choice

A situation in where the costs of an action are not fully borne by the two parties engaged in exchange is

• A) an externality.
• B) an internality.
• C) internal costs.
• D) a transactions cost.

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Definitions:

Payroll Register

A record that summarizes the wages, deductions, and net pay of all employees for each pay period.

Annual Earnings

The total amount of profit a company produces during a specific year.

Warranty Cost

Expenses associated with the repair, replacement, or refund for products within their warranty period.

Actual Warranty Costs

The real expenses incurred by a company to repair or replace products under warranty.