Which of the Following Is the Primary Reason Why Governments

question 12

Multiple Choice

Which of the following is the primary reason why governments formally integrate their legally adopted budget into their accounting systems?

• A)It is required by GASB.
• B)It enables the government to better control its expenditures.
• C)It keeps the government from overspending its budget.
• D)It helps a government by letting it know when it is in danger of overspending its budget.

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Definitions:

Standard Cost Variances

The differences between the actual costs incurred and the standard costs against which they are measured, often analyzed for materials, labor, and overhead.

Cost of Goods Sold

Represents the total direct costs attributable to the production of goods sold in a company, including materials and labor.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how effectively a company controls its materials costs.

Raw Material Purchase

The process of acquiring the basic materials needed for production of goods.