Which of the Following Is True About Command-And-Control Regulation That

question 12

Multiple Choice

Which of the following is true about command-and-control regulation that allows businesses to emit pollutants up to a certain point and bans emissions after that limit is reached?

• A)They are equivalent to emissions charges.
• B)They make firms pay the marginal cost of the damages done by their emissions, no matter what the level.
• C)They allow firms to emit some pollutants at zero charge.
• D)They are likely to minimize the cost of achieving any given reduction in emissions.

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Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which are easily traceable to the finished product.

Additional Manufacturing Overhead

Costs incurred in the manufacturing process that are above the initially budgeted or standard manufacturing overhead costs.

Underapplied

Underapplied refers to a situation where the allocated or estimated costs for a particular period are less than the actual costs incurred.

Overapplied

A situation where the allocated overhead costs for production exceed the actual overhead expenses incurred.