State and Local Governments

question 21

Multiple Choice

State and local governments

• A)are funded entirely by their own tax base.
• B)receive the majority of their tax revenues from corporate income taxes.
• C)are generally not responsible for collecting sales taxes.
• D)receive some of their funds from the federal government.

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Definitions:

Standard Costs

Predetermined costs for the manufacturing of products or services, used as target costs or bases for variance analysis.

Actual Costs

The true amounts spent on goods, services, and other charges, as opposed to estimated or budgeted costs.

Volume Variance

A financial metric that measures the difference between budgeted and actual volume of production or sales, impacting costs or revenues.

Fixed Factory Overhead

The portion of total factory overhead costs that remains constant regardless of the level of production or activity in a manufacturing facility.