GASB Statement No

question 1

Multiple Choice

GASB Statement No.34 requires the reporting for internal service funds by

• A)​combining income statement results with general fund activities
• B)​requiring internal service funds to be reported separately as major funds
• C)​classifying internal service funds as proprietary funds, labeled as government activities
• D)​All of the above

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Definitions:

Target Profit

The desired amount of profit a company aims to achieve within a specific period.

Unit Sales

A measurement of the total quantity of units of a product sold by a company.

Contribution Margin

The sum left over from sales income once all variable costs are subtracted.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain time period, such as rent, insurance, and salaries.