A Life Income Fund Is Used When:​

question 14

Multiple Choice

A life income fund is used when:​

• A)​resources are accepted with a stipulation that periodic payments will be made to the donor for a specified number of years
• B)​endowments are made to the college or university
• C)​resources are accepted with a stipulation that periodic payments will be made to the donor for the lifetime of the donor
• D)​All income earned on donated assets is to be paid to the donor over their lifetime.

---

Definitions:

Activity Rates

Charges used to assign costs to cost objects, based on activities that drive costs in activity-based costing.

Budgeted Cost

An estimate of the expenses for various operations, projects, or activities planned for a specific period.

Activity Cost Pools

A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately to products or services.

Plantwide Overhead Allocation

A method of allocating indirect costs to products based on a single overhead rate used throughout an entire plant or company.