What Is the Difference Between Conditional Grants and Unconditional Grants

question 66

Multiple Choice

What is the difference between conditional grants and unconditional grants?

• A) Conditional grants can only be offered by provinces and unconditional grants can only be offered by the federal government.
• B) The former describes transfers of federal funds that have no strings attached. The latter are transfers with conditions as to how it must be spent.
• C) The former describes transfers of federal funds with conditions as to how it must be spent. The latter are transfers that have no strings attached.
• D) Conditional grants can only be offered by the federal government and unconditional grants can only be offered by provincial governments.
• E) The former describes transfers of federal funds with conditions as to how the money must be spent. The latter refers specifically to grants offered by provincial governments.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected to be used, multiplied by the standard cost of those materials.

Inferior Materials

Materials of lower quality than standard, which may affect the quality of finished goods and potentially reduce manufacturing costs.

Budgeted Unit Sales

The projected quantity of products a company expects to sell over a certain period, based on budgeting processes.

Budgeted Cost

An estimated financial amount allocated for a specific purpose, project, or time period.