The GASB Sets Accounting Standards for All of the Following

question 6

Multiple Choice

The GASB sets accounting standards for all of the following except:

• A) State and local governments
• B) Nongovernmental not-for-profit hospital
• C) Component units owned or controlled by governments
• D) Governmentally related not-for-profit universities

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Definitions:

Direct Labor Cost

The sum of all expenses associated with labor that is directly used in the creation of products or services.

Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected, to produce a certain level of output.

Labor Rate Variance

The difference between the actual labor costs and the budgeted or standard labor costs, often due to differences in wage rates or work hours.

Standard Cost System

An accounting system that assigns predetermined costs to products and services, which are then compared to actual costs for variance analysis.