On the Statement of Functional Expenses Prepared for a Voluntary

question 3

Multiple Choice

On the statement of functional expenses prepared for a voluntary health and welfare organization,depreciation expense is allocated to:
I.expenses for program services.
II.expenses for supporting services.

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead.

Inventory

The raw materials, work-in-progress (WIP), and finished goods that a company holds for the purpose of sale in the ordinary course of business.

Production Budget

A plan showing the number of units that must be produced within a specific period to meet both sales demand and inventory requirements.