Which of the Following Would Not Be Considered a Negative

question 418

Multiple Choice

Which of the following would not be considered a negative externality?

• A)Smelter, Inc. creates steel and pollution.
• B)Your friend buys a new puppy that barks every night.
• C)You have an adverse reaction to a medication your doctor prescribed for you.
• D)Your neighbor plays loud music that you dislike through stereo speakers set up on his deck.

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Definitions:

Job Cost Sheet

A document that tracks the cost associated with a specific job, including materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or cost objects, calculated before the period begins based on estimated costs and activity levels.

Manufacturing Overhead

This refers to all of the indirect costs associated with the production process, such as utilities, maintenance, and salary of supervisors.

Predetermined Overhead Rate

A rate calculated at the beginning of the accounting period, based on the estimated overhead costs and estimated activity level, used to allocate overhead costs to products.