Which Type of Companies Would Benefit from Backflush Costing? Companies

question 15

Multiple Choice

Which type of companies would benefit from backflush costing? Companies ______:
Variant question

• A)that require audit trails.
• B)whose inventories vary from period to period.
• C)which have fast manufacturing lead times.
• D)Both A and B are correct.

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Definitions:

External Benefits

The positive effects of a transaction or an activity on an uninvolved third party or the society at large, which are not reflected in the market prices.

Externality

An economic term describing an indirect effect of a transaction not reflected in the market price, affecting third parties who did not choose to be involved.

Hydroelectric Power

Energy generated by converting the energy of falling or flowing water into electricity, commonly through the use of dams.

Overproduction

A situation where the supply of a product exceeds the demand for it, often leading to a fall in prices and profitability.