In Accordance with ASC 958,contributions of Services Are Recognized as Increases

question 103

Multiple Choice

In accordance with ASC 958,contributions of services are recognized as increases in unrestricted net assets by a private,not for profit entity if which of the following criteria are satisfied?
I.The services received create or enhance nonfinancial assets.
II.The services require specialized skills,are provided by individuals possessing those skills,and would typically need to be purchased if not provided by donations.
III.The services will be performed within the current fiscal year.

• A) I or II.
• B) I or III.
• C) II or III.
• D) I, II, III.

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Definitions:

Activity-based Costing

A method of allocating overhead and indirect costs based on each product's or service's actual consumption of resources.

Cost Pools

A method used in cost accounting to group collected costs, which simplifies allocating costs to different products, services, or departments.

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.