The _______ Sets the Accounting and Financial Reporting Standards for Both

question 108

Multiple Choice

The _______ sets the accounting and financial reporting standards for both state and local governments and public not-for-profits.

• A) FASAB
• B) FASB
• C) GASB
• D) AICPA

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Definitions:

Fixed Costs

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance costs.

Operating Income

An indication of a company's profitability from its core business operations, excluding income and expenses from unusual, non-operational activities.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, contributing to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in total despite fluctuations in the level of output or sales volume, such as rent or salaries.