A Measure of Whether the Government Lived Within Its Means

question 28

Multiple Choice

A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods, is:

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

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Definitions:

Inventory-Related Costs

Inventory-Related Costs are expenses associated with holding and managing inventory, including storage, insurance, and loss due to obsolescence.

Strategic Focus

The prioritization of resources and activities towards the key areas that will achieve the most significant impact on an organization's objectives and competitive advantage.

Customer Profitability

An analysis used to determine the profitability of a firm’s customers by attributing profits and costs to each customer individually.

Customer-Driven Costs

Expenses that arise from tailoring products, services, or experiences to specific customer needs or preferences.