Negative Externalities Are Often Referred to as

question 67

Multiple Choice

Negative externalities are often referred to as

• A) full absorption costs.
• B) social costs.
• C) allocated costs.
• D) environmental costs.

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Definitions:

Double Declining Balance

An accelerated method of depreciation which doubles the rate at which an asset is depreciated compared to the straight-line method.

Straight Line

A method for calculating depreciation or amortization by equally spreading the cost over the useful life of the asset.

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, intended to account for the decrease in value due to use and age.

Units-Of-Output Method

A depreciation method where the expense is based on the actual usage or production output of the asset.