Which of the Following Is NOT a Benefit to Government

question 22

Multiple Choice

Which of the following is NOT a benefit to government provided by contracting?

• A) Government can acquire services or products at a cheaper rate than if government were to produce them itself.
• B) Government can use its contracting power to encourage desirable behavior among those businesses that have contracts with the government.
• C) Government can use contracting to encourage industries, universities, and other organizations to engage in valuable research.
• D) Government can use contracting to help build up certain segments of the economy.
• E) Government officials almost always use contracting to award businesses and corporations that donated substantial amounts of money to their political campaigns.

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Definitions:

Static Budget

A financial plan that does not change or adjust over the period for which it is set, regardless of variations in activity levels or performance.

Overhead Cost

These are expenses related to the ongoing operation of a business that isn't directly tied to a specific product or service.

Favorable Spending Variance

A situation where the actual spending is less than the budgeted or expected amount.

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.