An Example of an Activity That Is Likely to Generate

question 15

Multiple Choice

An example of an activity that is likely to generate benefit (positive) externality is

• A)a well manicured lawn of your neighbor.
• B)growing wild flowers on city street islands.
• C)fireworks on the 4th of July.
• D)an educated workforce.
• E)All of the above

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Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity or production, such as labor hours or machine usage.

Facility-level Costs

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a facility.

Overhead Cost

Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and administrative costs.

Batch Level Activities

Activities and costs incurred for a group of products rather than individual units or processes.