A Certain Federal Agency Placed an Order for Office Supplies

question 23

Multiple Choice

A certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in the same fiscal year these supplies were received at an actual cost of $14,800. Assume commitment accounting is not used by this agency. At the time the order is placed, what is the net effect on the budgetary and proprietary track accounts?

• A) Budgetary accounts: $14,400; Proprietary accounts: $14,400.
• B) Budgetary accounts: $14,400; Proprietary accounts: $0.
• C) Budgetary accounts: $14,400; Proprietary accounts: $14,800.
• D) Budgetary accounts: $0; Proprietary accounts: $0.

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Definitions:

Linear Programming

A mathematical modeling technique used for achieving the best outcome in a mathematical model whose requirements are represented by linear relationships.

Scarce Resources

Limited or insufficient resources that cannot fully meet the demand when needed.

Labour

The human effort, both physical and mental, used in the production process.

Competitive Bidding

A purchasing process in which suppliers submit bids to win the rights to fulfill a contract.