Which One of the Following Is NOT a Characteristic of Public

question 266

Multiple Choice

Which one of the following is NOT a characteristic of public goods?

• A) They are indivisible.
• B) It is difficult to charge people on the basis of how much they use.
• C) Public goods can be used by increasing numbers of people at no additional cost.
• D) Public goods are subject to the principle of rival consumption.

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Definitions:

Unit Product Cost

The total cost associated with producing a unit of product, including both fixed and variable costs, divided by the total number of units produced.

Net Operating Income

A financial metric that represents the profit a company generates from its operations, excluding expenses from interest and taxes.

Absorption Costing

A method of accounting for the total cost of production, including fixed and variable costs, to value inventory.

Variable Costing

A method of accounting that exclusively accounts for variable production expenses—direct materials, labor directly assigned to production, and variable manufacturing overhead—when calculating the cost of products.