The Purpose of an Effluent Fee Imposed on a Firm

question 182

Multiple Choice

The purpose of an effluent fee imposed on a firm is

• A) to increase output of its product by increasing the resources allocated to production.
• B) to increase output of its product by reducing the resources allocated to production.
• C) to reduce output by increasing production costs thereby reducing resources used.
• D) none of the above

---

Definitions:

Nonmanufacturing Costs

Expenses not directly related to the production of goods, such as selling, general, and administrative expenses.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for manufacturing operations that produce goods based on specific customer orders.

Unit Product Cost

The total cost associated with producing one unit of product, including direct materials, direct labor, and allocated overhead.

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services but support those who are.