The Balanced Budget Act of 1997 Mandated a Balanced Federal

question 7

Multiple Choice

The Balanced Budget Act of 1997 mandated a balanced federal budget, but what changed to allow Congress to ignore it?

• A) 2008 recession
• B) 9/11
• C) European Monetary Collapse
• D) Rise in interest rates
• E) Supreme Court declaring it unconstitutional

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Definitions:

Overhead Variances

Differences between the actual overhead costs incurred and the standard costs for the overheads that were budgeted for a period.

Controllable

Controllable usually refers to expenses or costs that can be managed or influenced by decisions made by a company or an individual.

Volume

Refers to the amount of an asset or security that changes hands over a set period of time, commonly used in financial markets to gauge trading activity and liquidity.

Material Variances

The difference between the actual cost of materials used in production and the standard cost of materials that should have been used.