National Defence and Clean Air Are Similar in That Both

question 171

Multiple Choice

National defence and clean air are similar in that both are _____,but they differ in that clean air is _____,while national defence is not.

• A) rival in consumption;excludable
• B) nonrival in consumption;excludable
• C) excludable;rival in consumption
• D) nonexcludable;rival in consumption

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Definitions:

Contribution Margin

The selling price per unit minus the variable cost per unit, representing the incremental money generated for each product/unit sold.

Fixed Budget

A budget that is set for a specific period and does not change, regardless of variations in activity levels, sales volume, or other external factors.

Flexible Budget Amounts

Budget figures that are adjusted based on changes in the volume of activity, allowing for a more accurate reflection of costs under different operational levels.

Flexible Budget Amounts

Variably adjusting budget figures that can change based on actual levels of activity, often used for more accurate financial planning.