An External Cost Is Created When You

question 212

Multiple Choice

An external cost is created when you

• A)graduate from college.
• B)buy flowers for your mother on Mother's Day.
• C)litter on the side of the road.
• D)buy a sandwich for lunch.

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Definitions:

Profitability Ratios

Measures of the income or operating success of a company for a given period of time.

Operating Effectiveness

The efficiency with which a company utilizes its resources to produce goods or services and operates its business processes.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that shows changes in the amounts of corresponding financial statement items over a period of time, aiding in the assessment of financial performance and trends.

Vertical Analysis

A financial analysis method that expresses each item in a financial statement as a percentage of a base amount, facilitating period-to-period and company-to-company comparisons.