Which of the Following Is a Measure of the Extent

question 21

Multiple Choice

Which of the following is a measure of the extent to which the government's business-type activities are self-supporting?

• A) Unrestricted net position/total revenues.
• B) Business-type activities revenues/business-type activities expenses.
• C) Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by total beginning net position.
• D) Total revenues/total expenses.

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Definitions:

Machine-Hours

A measure of production time used in manufacturing, calculated by multiplying the number of machines by the hours they are operated.

Machine-Hours

An indicator of the amount of time machines are actively running, reflecting the cumulative hours of operation over a defined timeframe.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a relevant activity base.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including expenses such as rent, utilities, and equipment depreciation.