The Term "Restricted" as Used in University Accounting Refers to a Constraint

question 110

Multiple Choice

The term "restricted" as used in university accounting refers to a constraint on the use of funds which has been:
I.internally imposed.
II.externally imposed.

• A)I only
• B)II only
• C)Either I or II
• D)Neither I nor II

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Definitions:

Actual Production

The real and measurable output of goods or services from a production process or system.

Normal Production

The expected volume of output under standard operating conditions without external disruptions.

Standard Costing System

An accounting system that uses predetermined costs for products or services to assess the efficiency of operations by comparing them to actual costs incurred.

Standard Quantity Allowed

The quantity of materials or resources authorized for use in the production of a certain level of output under standard operating conditions.