Which of the Following Is an Example of a Positive

question 95

Multiple Choice

Which of the following is an example of a positive externality?

• A) banning the sale of candy in elementary schools
• B) planting trees along a sidewalk, which adds beauty and creates shade
• C) forbidding the use of cell phones in public
• D) prohibit street parking in all residential neighborhoods

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Definitions:

Overhead Applied

The allocation of indirect costs to specific cost objects, such as products or services, based on a predetermined overhead rate.

Direct Labor-Hours

The total hours worked directly on a product by employees.

Plantwide Predetermined Rate

A single overhead absorption rate used throughout an entire factory or plant for allocating overhead costs to products.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including costs of indirect materials, indirect labor, and other expenses that are not directly tied to the production of goods.