If a Governmental Entity Has a Blended Component Unit, the Note

question 31

Multiple Choice

If a governmental entity has a blended component unit, the note disclosures should include all of the following except

• A) How the component unit met the blending criteria.
• B) A statement that identifies the component units as a being blended.
• C) How to access separately issued external financial statements.
• D) The number of component unit governing board members.

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Definitions:

Variable Overhead Efficiency Variance

A measure of the difference between the expected variable overhead based on standard costs and the actual variable overhead incurred.

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Manufacturing Overhead

The sum of all costs involved in the production process other than direct materials and labor, such as utilities and rent for the manufacturing facilities.

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of units produced, multiplied by the standard fixed overhead rate.