The Term Used to Describe the Application of Accounting to Expendable

question 17

Multiple Choice

The term used to describe the application of accounting to expendable fund entities is the:

• A) accrual method.
• B) cash method.
• C) modified cash method.
• D) modified accrual method.

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Definitions:

Average Fixed Cost

The average fixed cost is the total fixed expenses of a business divided by the number of units produced, showing how much fixed costs contribute to each unit of production.

Average Variable Cost

The variable cost per unit of output, determined by dividing the total variable costs by the number of units of output.

Output

The total quantity of goods or services produced or supplied by a firm or economy within a certain period.

Product Price

The amount of money required to purchase a specific good or service offered in the market.