Which of the Following Is an Example of a Positive

question 111

Multiple Choice

Which of the following is an example of a positive externality?

• A) A neighbor's flower garden that you enjoy seeing
• B) Traffic congestion
• C) An increased supply of chocolate lowers chocolate prices for all consumers
• D) Pollution

---

Definitions:

Ending Work in Process Inventory

The value of goods that are partially completed at the end of an accounting period, which have not yet been transferred to finished goods inventory.

Units Transferred Out

The total quantity of items that have completed the production process and are moved out of the work-in-process stage.

Process Costing System

An accounting method used when identical products are mass-produced, assigning costs to units of product based on the process they undergo.

Overhead Allocated

The process of distributing overhead costs to specific products, services, or departments based on a predetermined rate or method.