Unlike a Private Good, a Public Good

question 268

Multiple Choice

Unlike a private good, a public good

• A)has no opportunity costs.
• B)has benefits available to all, including nonpayers.
• C)produces no positive or negative externalities.
• D)is characterized by rivalry and excludability.

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Definitions:

FIFO Method

First-In, First-Out, an inventory valuation method where the costs of the oldest inventory items are recorded as sold first.

Conversion Activity

Processes that transform raw materials into finished products, including manufacturing, assembling, and packaging operations.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs required to convert raw materials into finished goods.