Liberal Reimbursement for a Given Technology Will _____ Innovation, Diffusion

question 72

Multiple Choice

Liberal reimbursement for a given technology will _____ innovation, diffusion, and utilization of that technology.

• A)decrease
• B)have no effect on
• C)increase
• D)prevent

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Definitions:

Standard Costs

Preset costs for materials, labor, and overhead used to measure the performance of manufacturing activities against planned costs.

Variable Costing

A costing method where only variable costs are charged to product costs, with fixed costs treated as period costs.

Absorption Costing

A cost accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes involved in maintaining the operation.