What Is Not True for a System of Financial Penalties

question 23

Multiple Choice

What is not true for a system of financial penalties for polluters?

• A)Firms may be fined for pollution.
• B)Firms might have to pay a tax for each unit of pollution created.
• C)Firms would be encouraged to pollute less.
• D)Firms are always guaranteed the permit to pollute.

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Definitions:

Materials Quantity Variance

The difference between the budgeted and actual quantities of materials used in production, affecting cost management.

Standard Cost

A predetermined cost of manufacturing, calculated based on the expected costs of material, labor, and overhead for a unit of product.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, reflecting changes in material prices.

Materials Quantity Variance

The difference between the expected amount of materials needed for production and the actual amount used.