CERTIFIED GOVERNMENT FINANCIAL MANAGER (CGFM) EXAM
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
The method of accounting that focuses on determining the costs of providing goods and services.
Managerial accounting. Helps monitor performance. -
ANSWER
Cost Accounting
Fees charged by a government for a good or service -
ANSWER
User Fees
Recovery goals of a government when determining user fees. -
ANSWER
Cost Recovery Objective
In cost accounting, the costs that can be directly associated with a single cost objective. Common
examples are salaries, employee benefits, and travel. -
ANSWER
Direct Costs
Costs of resources that are jointly or commonly used to produce two or more types of outputs, but
are not specifically identifiable with any of the outputs. Typical examples include costs of general
administrative services, general research and technical support, security, rent, employee health and
recreation facilities, and operating and maintenance costs for buildings, equipment, and utilities.
Allocated to activities based on some rational distribution method. -
ANSWER
Indirect Costs
inter-entity costs that were performed without charge. the receiving entity must report on their
financial statements along with the value of the goods or services as a financing source -
ANSWER
Imputed cost
, Assigning costs:
Employees who work on a project would show the hours worked on their timesheet. They would also
assign travel costs by indicating the project involved. -
ANSWER
Direct Tracing
Assigning costs:
Based on the premise that outputs require the performance of certain activities, or use of certain
resources, to occur and that the activities or resource-use enable the results -
ANSWER
Cause-and-effect basis
Assigning costs:
When it is impractical, or not economically feasible, to assign costs directly or using cause-and-effect.
Most general management and administrative costs, support costs, depreciation, rent, maintenance,
security and utility costs are common -
ANSWER
Allocation
Break-Even fee formula -
ANSWER
Volume x Unit Price = Fixed Costs + (Volume x Variable Unit costs)
Costs incurred by one organization that are legitimate costs of a cost objective in another
organization -
ANSWER
Inter-entity costs
What are uses of cost accounting information? -
ANSWER
making a decision to outsource a program or activity
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
The method of accounting that focuses on determining the costs of providing goods and services.
Managerial accounting. Helps monitor performance. -
ANSWER
Cost Accounting
Fees charged by a government for a good or service -
ANSWER
User Fees
Recovery goals of a government when determining user fees. -
ANSWER
Cost Recovery Objective
In cost accounting, the costs that can be directly associated with a single cost objective. Common
examples are salaries, employee benefits, and travel. -
ANSWER
Direct Costs
Costs of resources that are jointly or commonly used to produce two or more types of outputs, but
are not specifically identifiable with any of the outputs. Typical examples include costs of general
administrative services, general research and technical support, security, rent, employee health and
recreation facilities, and operating and maintenance costs for buildings, equipment, and utilities.
Allocated to activities based on some rational distribution method. -
ANSWER
Indirect Costs
inter-entity costs that were performed without charge. the receiving entity must report on their
financial statements along with the value of the goods or services as a financing source -
ANSWER
Imputed cost
, Assigning costs:
Employees who work on a project would show the hours worked on their timesheet. They would also
assign travel costs by indicating the project involved. -
ANSWER
Direct Tracing
Assigning costs:
Based on the premise that outputs require the performance of certain activities, or use of certain
resources, to occur and that the activities or resource-use enable the results -
ANSWER
Cause-and-effect basis
Assigning costs:
When it is impractical, or not economically feasible, to assign costs directly or using cause-and-effect.
Most general management and administrative costs, support costs, depreciation, rent, maintenance,
security and utility costs are common -
ANSWER
Allocation
Break-Even fee formula -
ANSWER
Volume x Unit Price = Fixed Costs + (Volume x Variable Unit costs)
Costs incurred by one organization that are legitimate costs of a cost objective in another
organization -
ANSWER
Inter-entity costs
What are uses of cost accounting information? -
ANSWER
making a decision to outsource a program or activity
