The State of California Told the Owners of a Beach-Front

question 127

Multiple Choice

The state of California told the owners of a beach-front house that, before it would issue a building permit to allow expansion of the house, the owners had to agree to allow public use of their beach property. The Supreme Court held that this:

• A) was a proper use of state police power
• B) was a proper use of state regulatory power for "the public welfare"
• C) regulation of beach land was consistent with federal law and so was permissible
• D) was an unjust taking of property without compensation
• E) regulation was inconsistent with existing federal law and so was stricken

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Definitions:

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often labor or machine hours.

Activity-Based Costing

An accounting method that identifies and assigns costs to specific activities, thereby more accurately reflecting the costs of products or services.

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.

Manufacturing Overhead

These are indirect factory-related costs that are incurred when producing a product, such as utility costs, depreciation, and salaries of supervisors.