Marginal External Costs Are

question 49

Multiple Choice

Marginal external costs are

• A)additional unpriced costs imposed on society by producing one more unit of a good
• B)the cost of damaged goods
• C)the additional cost of imported goods
• D)the total cost to society of producing a good
• E)the marginal cost divided by the marginal revenue

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Definitions:

First-In, First-Out

An inventory valuation method where the cost of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Last-In, First-Out

An inventory valuation method where the costs of the most recently acquired items are the first to be expensed.

LIFO

An inventory cost methodology assuming the most recently added items to the inventory are sold first, short for "Last-In, First-Out."

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold.