Which of the Following Would Be Classified as an Externality

question 12

Multiple Choice

Which of the following would be classified as an externality?

• A)Smoke from a chimney causes discolored and peeling paint on other houses in the neighborhood.
• B)Noise from an unmuffled car wakes a sleeping person.
• C)A neighbor cleans up a yard and repaints a house.
• D)All of the above are externalities.

Recognize the distinction and application of FIFO, LIFO, weighted-average, and specific invoice inventory valuation methods.

Understand the journal entry process for inventory transactions, including purchases, sales, and returns.

Analyze the advantages and disadvantages of different inventory valuation methods.

Interpret the role of inventory ledgers and journals in tracking inventory transactions and balances.

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Definitions:

Constant Rate

A rate of change that remains the same over a given period of time, indicating uniformity in growth or decline.

Customer Demands

The specific needs and desires of customers that influence their purchasing behavior and choices.