Question 1

"User charges for services rendered by an activity accounted for by a proprietary fund should cover indirect costs as well as direct costs.Further,user charges must be set before the service is rendered (which means before either direct costs or indirect costs are known)." Assuming that both these statements are true,explain how you would proceed to set user charges for an activity accounted for by a proprietary fund.

Accepted Answer

The answer of "User charges for services rendered by an...

Question 2

Describe what is meant by the term "entrepreneurial budgeting." Would you expect governments to adopt an entrepreneurial budgeting approach in lieu of a more traditional budgeting approach,such as incremental budgeting?

Accepted Answer

The answer of Describe what is meant by the term...

Question 3

Activity-based costing data is available for various activities relating to highway signage in Pinconning City.The activities include: cut brush,hand-letter and silk-screen signs,hang banners,install signs,relocate or remove signs,repair and replace signs,apply sign face,and installation.The specific components of the costs for each activity are personnel costs,direct material costs,overhead costs,and stock costs.Accomplishments are measured in terms of number of hours or signs for each of the activities.How does this method of accumulating costs compare with a typical cost accounting system that allocates indirect costs on a predetermined overhead rate basis? What can you learn from an activity based system that is not provided by a conventional costing system?

Accepted Answer

The answer of Activity-based costing data is available for various...

Question 4

Mountain City government has a payroll department that handles the processing of payroll for all city employees.The responsibilities of the payroll department relate to full-time,part-time and contractual employees and include: obtaining information from new employees so they can be added to the payroll; having new employees complete payroll withholding and deduction forms; collecting time sheets; calculating gross pay,appropriate deductions and employer contributions for each pay period; and completing vouchers for contributions and withholdings.The annual budget of the payroll department is  The city charges the payroll department an indirect overhead cost rate based on the number of square feet of office space utilized.The overhead rate is currently $9 per square foot.The overhead rate is intended to cover maintenance costs,utilities,and equipment depreciation.Recently,Mountain City has begun to wonder if it would be more economical to contract for its payroll services.The city's budget administrator contacted a neighboring city and learned that the neighboring city was paying $1.50/check for its payroll function.
Required
1.Calculate Mountain City payroll department's cost per check.
2.Based on costs would it be cheaper to maintain the payroll department or contract out for the payroll services?
3.Discuss what other information you would want before making a decision about retaining or contracting payroll.

Accepted Answer

The answer of Mountain City government has a payroll department...

Question 5

Discuss the implications of GASB governmental fund and government-wide financial reporting on the budgeting process in a city.

Accepted Answer

The answer of Discuss the implications of GASB governmental fund...

Quiz 13: Accounting for Not-For-Profit Organizations

Describe what is meant by the term "entrepreneurial budgeting." Would you expect governments to adopt an entrepreneurial budgeting approach in lieu of a more traditional budgeting approach,such as incremental budgeting?

Discuss the implications of GASB governmental fund and government-wide financial reporting on the budgeting process in a city.