Many External Costs Occur Because

question 30

Multiple Choice

Many external costs occur because

• A) people do not pay the true cost of using a resource.
• B) people do not pay the private cost of using a resource.
• C) companies do not pay the market price for natural resources.
• D) companies pay more than the true cost of using a resource.

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Definitions:

Internal Control-Integrated Framework

A conceptual framework developed by the Committee of Sponsoring Organizations (COSO) to help businesses establish, assess, and enhance their internal control systems.

Analyzing

The process of examining data or information to understand its components, relationships, and implications, often for decision-making purposes.

Evaluating

The process of assessing or examining something to determine its value, effectiveness, or condition, often for decision-making purposes.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to identify discrepancies and reconcile differences.