Because of Greater Decentralization of Policy Making to the States

question 31

Multiple Choice

Because of greater decentralization of policy making to the states, it has become more important that states have strong ______ or the ability to make effective and efficient policies.

• A) mandates
• B) policy capacities
• C) division of authority
• D) policy instruments

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Definitions:

Variable Overhead

Costs that fluctuate with production levels, such as utility bills or raw material costs, that are not directly tied to manufacturing.

Materials Price Variance

The difference between the actual cost of raw materials and the standard (expected) cost, used to assess budgeting efficiency.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost at standard prices.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance and cost control.