Which of the Following Is an Accurate Description or Characteristic

question 62

Multiple Choice

Which of the following is an accurate description or characteristic of categorical grants?

• A) They use mathematical calculations or demographic factors to allocate funds to states or localities.
• B) They provide funds for very narrow purposes and contain clear time frames for completion.
• C) They provide funds for broad categories of assistance, such as health care or law enforcement.
• D) They are reserved for special purposes such as health care for the poor, highway safety, or flood assistance.
• E) They impose strict policy changes on states in exchange for monetary assistance.

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Definitions:

Efficiency Variance

The difference between the actual input used in production and the standard input that should have been used, measured in monetary terms.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, which is often analyzed in cost accounting to assess performance.

Labor Cost

The total amount of money that a company pays to its employees, including wages, benefits, and taxes.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.