Private Property Rights Are Important Because

question 65

Multiple Choice

Private property rights are important because:

• A)they create incentives for people to improve their standard of living.
• B)the Constitution says so.
• C)they allow students to choose their major field of study in college.
• D)an economy cannot function without them.
• E)goods cannot be produced without them.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.

Direct Materials

Raw materials directly used in the manufacturing of a product that can be directly traced to that product.

Variable Overhead

Variable overhead refers to the indirect costs of production that fluctuate with the level of output, such as utilities and materials.

Variable Costing

An accounting method that only includes variable production costs in product costs, excluding fixed costs.