It Is Often Important in Cost-Benefit Analysis to Distinguish Between

question 4

Multiple Choice

It is often important in cost-benefit analysis to distinguish between non-market values and direct values attached to direct use.Why is it important to include non-market values in an analysis?

• A)non-market values are easier to estimate than direct use values
• B)non-market values are more accurate than market values
• C)non-market values reflect supply and demand more accurately
• D)non-market values reflect the costs and benefits to society, not just to private individuals

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Definitions:

Prepaid Expense Adjusting Entries

Journal entries made at the end of an accounting period to account for expenses paid in advance but which relate to future accounting periods.

Supplies Expense

An account that represents the cost of supplies used during an accounting period, which are not held for resale.

Adjusting Journal Entry

An adjusting journal entry is made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Long-Lived Assets

Long-lived assets are tangible or intangible assets that a company holds for use over several years, such as buildings, machinery, or patents.