answersLogoWhite

0

An example of spillover costs includes production costs passed to a third party without any form of compensation.

User Avatar

Wiki User

11y ago

What else can I help you with?

Continue Learning about Accounting

What is an example of spillover cost?

An example of a spillover cost is pollution generated by a factory that affects nearby residents. When the factory emits harmful substances into the air or water, it can lead to health problems, reduced property values, and increased healthcare costs for the community. These negative impacts are not reflected in the factory's production costs, making them external costs borne by society rather than the producer.


What are example of variable expenses?

Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.


What is an example of a recurring expense for a household budget?

An example of a recurring expense for a household budget is the rent or mortgage. Other examples are food costs, the phone bill and electricity costs.


What are funding costs?

Funding Costs: These costs are charges which any company pay to the lender for taking the loan for it's business and workings. For Example interest on loan etc


Difference between avoidable cost and unavidable cost?

Avoidable Cost = These are those costs which can be avoidable by doing or not doing any particular activity For Example :Direct CostsUnavoidable Costs = These are those costs which are not avoidable whether do or donot initiate any activity For example: Fixed CostBut sometimes fixed costs are also avoidable or unavoidable by doing or not doing any activity in these cases fixed costs are also avoidable costs.

Related Questions

What are spillover costs?

These are costs not included in production. They are sometimes absorbed by vendors or outside forces beyond the company. They are often related to consumption of the product. This can occur in pollution for example.


Why are spillover costs called negative externalities?

Spillover costs are called negative externalities because they are external to the participants in the transaction and reduce the utility of affected third parties (thus "negative").


What is the following example of spillover costs?

In a water treatment plant, the place your drinking water comes from, they use a spillover to areate the water. After the water is purified in the treatment plant it goes into a large lake with a small waterfall or spillover that allows the air to mix with the water which gives it a better taste.


What is spillover cost?

Spillover costs (Negative externality):nproduction or consumption costs inflicted on a third party without compensation nExample: environmental pollution Spillover benefits (Positive externality):nproduction or consumption of certain goods and services may confer external benefits on third party or the community at large without compensating payment nExample: education


Costs of a production that affect people who have no control over how much of a good is produced?

spillover cost


A negative externality or spillover cost occurs when?

teh total cost of producing a good exceeds the costs borne by the producer


What is negative spillover?

A negative spillover is when the decision of one party effects a third party in a negative manner


What three problems in the free market work against the efficient allocation of resources?

1.Imperfect conpetition 2.spillover costs/externalities 3.Imperfect Information.


Did Laos and Cambodia often suffered spillover form the 1960's and 1970's warfare in Vietnam?

If you consider spillover to be US troops going into Laos or Cambodia in an effort to follow through on their orders to stop Communism - then yes there was spillover.


What are the release dates for Spillover - 2008?

Spillover - 2008 was released on: USA: 2 February 2008 (San Francisco Ocean Film Festival)


What are spillovers?

A spillover is an instance of overflowing or spreading into another area.


What is the definition of harmful spillover?

something that hurts the enviorment like pollution