A Good or Service or a Resource Is Nonrival If

question 132

Multiple Choice

A good or service or a resource is nonrival if

• A) it is possible to prevent someone from enjoying its benefits.
• B) its use by one person decreases the quantity available for someone else.
• C) it is not possible to prevent someone from enjoying its benefits.
• D) its use by one person does not decrease the quantity available for someone else.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's value over time.

Direct Materials Variances

The difference between the actual cost of direct materials used in production and the expected (standard) cost of those materials.

Fixed Overhead

Regular, unchanging costs incurred by a business, regardless of its level of production or sales, such as rent or salaries.

Direct Labor

The labor costs directly associated with the production of goods or services, such as wages for workers who are involved in the manufacturing process.