A Network Externality Is

question 45

Multiple Choice

A network externality is:

• A)a direct effect on an economic decision maker.
• B)an indirect effect on an economic decision maker.
• C)the effect that an additional participant in an activity has on the value of that activity for others.
• D)an uncompensated effect on someone other than the person who caused it.

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Definitions:

Fixed Budget

A budget that remains unchanged over the budget period regardless of changes in the level of activity.

Variances

Variances refer to the differences between planned, budgeted, or standard costs and the actual costs incurred, indicating deviations in financial and operational performance.

Closing

The process of finalizing accounts at the end of an accounting period by transferring balances to permanent accounts.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.