Exhibit 17-4 -Which of the Following Could Not Have Caused the Increase

question 14

Multiple Choice

Exhibit 17-4

-Which of the following could not have caused the increase in demand indicated in Exhibit 17-4?

• A)new firms located on the river
• B)the pollution was discovered to be more hazardous than had previously been supposed
• C)the cost of pollution abatement equipment rose
• D)consumers wanted to buy more of the good produced by the polluters
• E)the government subsidized firms so they could better afford to buy pollution rights

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Definitions:

Equivalent Unit

A concept used in cost accounting to represent the portion of a product, in terms of material, labor, or overhead costs, completed within a given period, facilitating cost analysis.

Assembly Department

A division within a manufacturing facility where components are assembled into final products or where significant assembly activity takes place.

First-In, First-Out Method

An inventory valuation method where the goods first produced or acquired are sold or used before newer inventory.

Equivalent Units

A method used in process costing to convert partially completed goods into a comparable number of fully completed units.