If It Is Impossible to Prevent Someone from Benefiting from a Good

question 125

Multiple Choice

If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is

• A) nonrival.
• B) rival.
• C) nonexcludable.
• D) excludable.

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Definitions:

Process Further

A decision-making process in cost accounting that evaluates the costs and benefits of additional processing.

Variable Expenses

Costs that change in proportion to the level of production or sales activities of a business.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Net Operating Income

Income before interest and income taxes have been deducted.