Which of the Following Is Not a Major Reason Given

question 26

Multiple Choice

Which of the following is not a major reason given for governmental regulation?

• A) controlling natural monopolies
• B) controlling negative externalities
• C) achieving social goals
• D) maintaining a trade surplus with foreign countries

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Definitions:

Variable Costing

An accounting method that considers only variable costs for product costing, excluding fixed manufacturing overhead.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and allocated overheads.

Net Operating Income

An indicator of a company's profitability calculated by subtracting operating expenses from operating revenues, excluding taxes and interest.

Common Fixed Expenses

Overhead costs that do not fluctuate with the level of production or sales, such as rent, salaries of administrative staff, and insurance.