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A negative externality or spillover cost occurs when Multiple Choice the price of a good exceeds the marginal cost of producing

Mekhanik [1.2K]

A negative externality or spillover cost occurs when the total cost of producing a good exceeds the costs borne by the producer.

Spillover costs, commonly referred to as "negative externalities," are losses or harm that a market transaction results in for a third party. Even though they were not involved in making the initial decision, the third party ultimately pays for the transaction in some way, according to Fundamental Finance.
An incident in one country can have a knock-on effect on the economy of another, frequently one that is more dependent on it, known as the spillover effect.
Externalities are the names for these advantages and costs of spillover. When a cost spills over, it has a negative externality. When a benefit multiplies, a positive externality happens. Therefore, externalities happen when a transaction's costs or benefits are shared by parties other than the producer or the consumer.

Thus this is the answer.

To learn more about spillover cost, refer: brainly.com/question/2966591

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6 0

1 year ago

In a given time period, a person consumes more and more of a good or service and, as a result, enjoys each additional unit less

Natalka [10]

I believe the right answer is c

3 0

2 years ago

A flexible-budget variance is $800 favorable for unit-related costs. This indicates that costs were: _____________

Galina-37 [17]

Answer: $800 less than standard for the achieved level of activity

Explanation:

A flexible budget variance refers to the difference that occurs between the results that are gotten by a flexible budget model and the actual results gotten.

Since the flexible-budget variance is $800 favorable for unit-related costs, this indicates that costs were $800 less than standard for the achieved level of activity.

Therefore, the correct option is D.

6 0

2 years ago

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provide

Katarina [22]

Answer:

Machine related= $130,520

Batch setup= $283,920

Order size= $89,460

Explanation:

<u>First, we need to calculate the predetermined overhead rate for each activity:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine related= 311,240/12,400= $25.1 per machine hour

Batch setup= 343,980/12,600= $27.3 per setup

Order size= 242,820/11,400= $21.3 per direct labor hour

<u>Now, we can allocate costs to Product X:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machine related= 25.1*5,200= $130,520

Batch setup= 27.3*10,400= $283,920

Order size= 21.3*4,200= $89,460

8 0

3 years ago

Infomation:

vampirchik [111]

First, the quotation for each car model has to be obtained. The quotation must include the taxes including insurance.Then, a comparison is done taking into account the mileage and the maximum allotted budget for the other expenses which is $800.

7 0

2 years ago