Impact Fees Imposed on Commercial Developers by an Enterprise Fund

question 3

Multiple Choice

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

• A) Transfers from the enterprise fund to a capital projects fund.
• B) Operating revenues to the enterprise fund.
• C) Capital contributions to the enterprise fund.
• D) Unearned revenue to the enterprise fund.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, measuring the cost per unit of output.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.

Marginal Cost

The change in the total expense associated with the production of an extra unit of a product, whether it be an increase or decrease.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the average cost per unit of output.