As Described in Statement of Federal Financial Accounting Concepts (SFFAC)

question 43

Multiple Choice

As described in Statement of Federal Financial Accounting Concepts (SFFAC) No. 2 "Entity and Display," which of the following is an accurate list of the three perspectives from which the federal government can be viewed?

• A) Function, department, and program.
• B) Organization, budget, and program.
• C) Budget, program, and line-item.
• D) Fund, activity, and account.

---

Definitions:

Production Costs

Expenses directly associated with the creation of goods or services, including raw materials, direct labor, and manufacturing overhead.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Predetermined Overhead Rate

A rate used to allocate indirect costs to products or services, estimated before the costs are incurred.

Direct Material

Raw materials directly used in the manufacturing of a product, explicitly traceable to the goods being produced.