An Externality Is

question 99

Multiple Choice

An externality is

• A)a benefit realized by the purchaser of a good or service.
• B)a cost paid for by the producer of a good or service.
• C)a benefit or cost experienced by someone who is not a producer or consumer of a good or service.
• D)anything that is external or not relevant to the production of a good or service.

---

Definitions:

Lean Manufacturing

A structured strategy to decrease waste production in manufacturing processes while maintaining efficiency.

Nonfinancial Measures

Performance metrics that do not involve monetary units but measure aspects such as customer satisfaction, quality, and employee engagement.

Financial Accounting Measures

Metrics and calculations used to record, summarize, and report the financial position and performance of a business according to accepted accounting principles.

Long-Term Operating Decisions

Strategic choices made by management concerning the long-term operations of a company, including investments in capital projects, product development, and market expansion strategies.