Which of the Following Is an Example of an Unintended

question 115

Multiple Choice

Which of the following is an example of an unintended consequence?

• A)first time tax credits that cause more home sales
• B)a price ceiling on gasoline that causes a gas shortage
• C)increased parking fines that lead to fewer violators
• D)all of the above
• E)none of the above

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Definitions:

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead from product cost calculations.

Net Operating Income

The income generated from normal business operations after deducting operating expenses such as wages and cost of goods sold, excluding income from investments and other non-operational sources.

Variable Costing

An accounting method that only considers variable costs (costs that change with production levels) in product costing and decision-making.

Absorption Costing

A bookkeeping approach that encompasses the total expenses of production, including direct materials, direct labor, along with both variable and fixed overhead costs, into the pricing of a product.