Which of the Following Activities Entails an External Cost

question 73

Multiple Choice

Which of the following activities entails an external cost?

• A)Bob chooses engineering as a major because engineers earn more than other professionals.
• B)Sarah gets in her car and drives to the beach.
• C)Tom paints the walls of his room.
• D)Victoria purchases tomatoes from the local grocery store.

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Definitions:

Number of Employees

The total count of individuals working for a company, including full-time and part-time staff.

Time-Driven Activity-Based Costing

An accounting method that allocates costs based on actual activities performed and the time it takes to complete those activities.

Tech Support Department

A functional division within a company that provides technical assistance and support services to its customers or users.

Customer Cost Analysis

An evaluation technique to determine the total cost incurred by a business to produce, sell, and distribute a product to a specific customer.