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Explain Why Other Comprehensive Bases of Accounting (OCBOA)may Be Used

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Essay

Explain why other comprehensive bases of accounting (OCBOA)may be used by a state or local government instead of GASBS 34 standards which are generally accepted accounting principles (GAAP).


Definitions:

Efficient Level

A state where resources are allocated in a way that maximizes the production of goods and services, without any waste of resources.

Marginal Cost

It's the cost incurred by producing one additional unit of a product or service.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.

Externalities

Financial repercussions impacting bystanders who are not directly involved, which can be beneficial or detrimental.

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