What Is a "Social Cost" of Production

question 101

Multiple Choice

What is a "social cost" of production?

• A)the cost of the natural resources used up in production
• B)the total costs of producing a product, both implicit and explicit costs
• C)the sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product
• D)the cost of the environmental damage created by production

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Definitions:

Indirect Costs

Expenses not directly tied to a specific product, service, project, or activity, typically including utilities, rent, and administrative salaries.

Cost Object

Any item for which costs are measured and assigned, including products, services, projects, activities, or customers.

Cost Object

Any item for which costs are separately measured and tracked, such as products, services, projects, or customers.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.