An Example of a Good That Is Rival in Consumption

question 55

Multiple Choice

An example of a good that is rival in consumption is:

• A)a sports car.
• B)a paper clip.
• C)bottled water.
• D)All of these goods are rival in consumption.

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Definitions:

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced, indicating the cost to produce each unit of product.

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Unit Product Cost

The total cost (both variable and fixed costs) associated with producing a single unit of a product.

Variable Costing

A method of inventory costing that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed manufacturing overhead.