An Indication of the Changing Role of State and Local

question 8

Multiple Choice

An indication of the changing role of state and local governments is that

• A) the practice of political patronage has virtually come to an end at these levels.
• B) governors and mayors have openly accepted new powers and responsibilities devolved from the central government.
• C) both levels have become foci of authentic party competition.
• D) state and municipal governments have been granted increased authority to raise their own revenue.
• E) All of the above are indications of the changing role of state and local governments.

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Definitions:

Direct Materials Cost

The cost of raw materials directly used in the production of goods or services.

Product Costs

Costs that are incurred to acquire or manufacture a product and include direct materials, direct labor, and manufacturing overhead.

Relevant Range

The band of normal activity level or volume in which specific fixed and variable cost assumptions hold true.

Financial Reporting

Financial reporting involves the disclosure of financial results and related information by a company to its stakeholders, to help in making economic decisions.