The Most Important Difference Between Businesses and Nonprofit Organizations Is

question 50

Multiple Choice

The most important difference between businesses and nonprofit organizations is that:

• A)businesses do not benefit society.
• B)nonprofit organizations do not strive for financial gains.
• C)nonprofit organizations focus on social and educational goals.
• D)nonprofit organizations do not benefit society.

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Definitions:

CVP Analysis

A management accounting method used to analyze the impact of varying levels of costs and volume on operating profit.

Fixed Cost

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.

Activity Level

The activity level is a measure of volume of work or operations, which could influence costs and operational efficiency within a business.

Activity Index

A measure used to estimate the amount of activity, effort, or work involved in a process or project.