Under the GASB Statement No

question 22

Multiple Choice

Under the GASB Statement No.34 reporting model for governmental entities, the focus of the government-wide Statement of Activities is on which of the following?

• A)Program revenues and general revenues.
• B)Program revenues and expenses.
• C)Net income.
• D)The net cost of each of the government's main functions and programs.

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, changing with levels of production but not in direct proportion.

Variable Cost

A cost that varies with the level of output or sales, such as materials or commissioned labor.

Fixed Cost

A cost that does not vary with the level of output or sales over a certain period, such as rent or salaries.

Break-even Point

The point at which total costs and total revenue are equal, meaning no profit or loss is made, illustrating the minimum sales volume needed to cover fixed and variable costs.