Which of the Following Is True with Respect to Public

question 23

Multiple Choice

Which of the following is true with respect to public four-year higher education institutions (public colleges) ?

• A) Sometimes, but not always public colleges are included as component units in the state CAFR.
• B) Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.
• C) Public colleges do not have the power to issue debt; it must be issued by the state as general obligation debt.
• D) Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.

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Definitions:

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and included in the cost of the product.

Direct Labor-Hours

The number of labor hours expended directly on the production floor by employees actively engaged in manufacturing processes.

Variable Overhead

Variable overhead are those operating costs that vary with levels of output or activity, including utilities, supplies, and certain labor costs.

Direct Material

Raw materials that can be directly traced to the manufacturing of a specific product and are a significant portion of the production cost.