Defense Contractors Would Be More Likely to Use Which of the Following

question 4

Multiple Choice

Defense contractors would be more likely to use which of the following cost concepts in pricing their product?

• A) Variable cost
• B) Product cost
• C) Total cost
• D) Fixed cost

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Definitions:

Nonexclusive

A property of a good or service where one person's use does not diminish availability to others.

External Benefit

A benefit that results from an economic activity which accrues to unrelated third parties.

Third Party

An entity involved in a transaction or agreement who is not one of the principal parties.

Cooperative

An organization consisting of people who pool their resources to buy and sell more efficiently than they could individually.