The Measurement Focus and Basis of Accounting That Are Most

question 13

Multiple Choice

The measurement focus and basis of accounting that are most unlike those used by business entities are those used by

• A) Governmental funds.
• B) Fiduciary funds.
• C) Proprietary funds.
• D) Contribution funds.

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Definitions:

Economies Of Scale

A situation where the cost per unit of output decreases as the scale of production increases.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Diseconomies Of Scope

A situation where the cost of producing multiple products or services together is higher than producing them separately.

Economies Of Scope

Cost advantages that enterprises obtain due to a broader scope of operations or increased production diversity.