My Brother Decides to Leave His Empty Soda Can on Someone's

question 189

Multiple Choice

My brother decides to leave his empty soda can on someone's lawn. This is an example of a

• A)public good.
• B)positive externality.
• C)neutral externality.
• D)negative externality.

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Definitions:

Actual Hours

Refers to the real amount of time spent on a task or activity, as recorded or reported.

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the standard hours allowed for the actual output and the actual variable overhead incurred.

Standard Machine-Hours

An accounting measure used to allocate manufacturing overhead costs to products based on the number of hours machines are expected to operate.

Variable Overhead Rate Variance

The difference between the expected (standard) cost of the variable overhead based on the actual production volume and the actual variable overhead incurred.