An Older Type of Federal Grant, in Which Statistical Criteria

question 103

Multiple Choice

An older type of federal grant, in which statistical criteria are used to determine how much funding that a state or local government will receive, is the ___________ grant.

• A) project
• B) formula
• C) entitlement
• D) community redevelopment

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Definitions:

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary with the level of production output.

Fixed Manufacturing Overhead

Consistent costs incurred during the manufacturing process that do not change with the amount of production, like factory rent and salaries of permanent staff.

Job-Order Costing System

An accounting system that accumulates costs by specific jobs or orders, suitable for manufacturing or service processes that are distinctively identifiable.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate overhead costs to products or job orders based on a certain activity base.