As Population Increases

question 18

Multiple Choice

As population increases,

• A) Demand for resources will tend to increase.
• B) Growing demand for resources will ensure that more will always be found.
• C) Natural systems will continue to compensate adequately for such disruptions as pollution; the earth is a big place.
• D) All of the choices are correct.

---

Definitions:

Absorption Costing

An accounting method that includes all direct costs and overhead in the cost of a product.

Net Operating Income

The total profit of a company after operating expenses are subtracted, but before taxes and interest are deducted.

Variable Costing

An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and inventory valuation.

Absorption Costing

A method of accounting in which all costs of manufacturing, both direct and indirect, are treated as product costs, regardless of whether they vary with output level.