A Two-Way Network That Links Users and the Per-Unit Value

question 11

Multiple Choice

A two-way network that links users and the per-unit value of the service increases as the size of the network increases is a

• A)positive externality known as an indirect network externality.
• B)negative externality known as an indirect network externality.
• C)positive externality known as an direct network externality.
• D)negative externality known as an direct network externality.

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Definitions:

Costing System

A method used by businesses to estimate the cost of their products for profitability analysis, cost control, and inventory valuation.

Weighted Average Method

A costing method that calculates the cost of inventory based on the weighted average of the cost of items available for sale, used in accounting.

FIFO Method

"First In, First Out," an inventory valuation method where the oldest inventory items are sold first.

Abnormal Spoilage

Wastage that occurs outside of the normal production process, often due to unusual or unforeseen circumstances.