Congress Has Provided the State of Ohio $50M for Highway

question 38

Essay

Congress has provided the state of Ohio $50M for highway construction and renovation.As a condition,Ohio must award 30% of the contracts to firms that are owned by women or minorities.Ohio sues claiming that such a condition is an intrusion on Ohio's right to seek competitive bids and make the best use of the money.Ohio also asserts that this will make it difficult to seek the best quality companies and that how they allocate the money is purely a state function as long as they use the money for the purposes intended.How will the court likely decide this dispute?

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Definitions:

Traditional Costing

A costing method that allocates factory overhead to products based on volume-related measures, such as labor hours or machine hours.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated manufacturing overhead costs to individual units of product based on a chosen activity base.

Washing Mitt

A glove-like cleaning tool used for washing surfaces, especially in automotive detailing, made of soft fibers to avoid scratching.

Activity-Based Costing

A method of cost accounting that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.