Which of These Is an Example of Consumers Creating a Negative

question 189

Multiple Choice

Which of these is an example of consumers creating a negative externality?

• A) Air traffic from a nearby airport reduces property values.
• B) A fast-food restaurant fails to provide medical benefits to employees.
• C) A tanker ship leaks oil into a harbor.
• D) Litter is found in an area around a fast-food restaurant.

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Definitions:

Job-Order Costing System

A job-order costing system is an accounting method that assigns manufacturing costs to individual products or job orders based on the specific resources each job consumes.

Process Costing

An accounting methodology used in industries where production is continuous, assigning costs to units of product based on the process they have undergone.

Job-Order Cost Sheet

A detailed document that tracks the production costs directly associated with a specific job or order, including materials, labor, and overhead costs.

Direct Materials

Raw materials used in the manufacturing of a product, which can be directly attributed to that product.