Which of the Following Would Not Be Provided by Management's

question 35

Multiple Choice

Which of the following would not be provided by management's discussion and analysis (MD&A) ?

• A) A narrative explanation of the contents of the CAFR.
• B) A description of the government's financial condition.
• C) A forecast of revenues and expenditures for the next three fiscal years.
• D) A discussion of economic factors and the budget and tax rates approved for the next year.

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Definitions:

Break-even Quantity

The volume of sales at which total revenues equal total costs, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not vary with the level of production or business activity, including rent, salaries, and insurance premiums.

Marginal Costs

The change in total cost that arises from producing one additional unit of a product or service.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.