Which of the Following Assets Does a Retailer-But NOT a Service

question 8

Multiple Choice

Which of the following assets does a retailer-but NOT a service business-need?

• A)Accounts receivable
• B)Equipment
• C)Inventory
• D)Prepaid insurance

Understand the role of market economies in regulating pollution levels.

Analyze the cost-benefit aspects of pollution in economic terms.

Predict the consequences of external costs on market efficiency.

Determine the socially optimal level of pollution based on marginal social benefits and costs.

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Definitions:

Absorption Costing

A method of accounting for the total cost of production, including fixed and variable costs, to value inventory.

Variable Costing

A method of accounting that exclusively accounts for variable production expenses—direct materials, labor directly assigned to production, and variable manufacturing overhead—when calculating the cost of products.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product, required for external reporting in many jurisdictions.

Ending Inventory

The total value of all unsold goods still available in stock at the end of an accounting period.