The Basic Financial Statements of a State or Local Governmental

question 75

True/False

The basic financial statements of a state or local governmental unit include the MD&A, government-wide statements, fund statements, and the notes.

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Definitions:

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.

Absorption Costing

An accounting method that includes all manufacturing costs, both variable and fixed, in the cost of producing each unit of a product.

Variable Costing

An accounting method that only allocates variable costs to the inventory; fixed manufacturing overhead is expensed as incurred.

Cost Structure

The composition of a company's costs, both fixed and variable, that are incurred in the operation of its business.