Release of Information Has Increased Its Use of Part-Time Prn

question 382

Multiple Choice

Release of information has increased its use of part-time prn clerical support in order to respond to increased requests for release of information. The budget variance report will reflect

• A) the increase in the cost of part-time clerical support for ROI, but not the increase in revenue from this area.
• B) the increase in revenue from increased volume in ROI, but not the increased costs of part-time clerical support.
• C) both the increases in revenue and increased costs for clerical support in ROI.
• D) neither the increased costs nor increased revenue, as temporary changes are rarely reflected on variance reports.

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Definitions:

Reportable Segment

A component of a business that can generate revenues and expenses and is regularly reviewed by the company's chief operating decision-maker for performance assessment.

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company’s chief operating decision maker.

Minimum Assets

The least amount of assets required by a regulatory body or financial institution for a company to operate or qualify for financing.

Revenue Test

A criterion used to determine the effectiveness of a business's ability to generate income.