Government Programs, Such as Social Security, Food Stamps, AFDC, SSI

question 47

Multiple Choice

Government programs, such as Social Security, food stamps, AFDC, SSI, Medicare, and Medicaid, that guarantee particular levels of transfer payments to all who fit the programs' criteria are called

• A) public assistance programs.
• B) social insurance programs.
• C) benefit-reduction programs.
• D) entitlement programs.

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Cost

A sacrifice made to obtain some benefit.

Activity

In accounting and finance, it typically refers to the level of business operations or transactions in a given period.

Relevant Activity Base

A factor that causes changes in the behavior of costs, used to allocate fixed costs to cost objects effectively.