Budgeting in Not-For-Profit Organizations

question 185

Multiple Choice

Budgeting in not-for-profit organizations

• A) is not important because they are not profit-oriented.
• B) usually starts with budgeting expenditures rather than receipts.
• C) is necessary only if some product is produced and sold.
• D) consists entirely of budgeted contributions.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scope

Cost advantages that enterprises obtain due to a broad range of products rather than specializing in a single product or service, enabling more efficient use of shared resources.

Routing Flexibility

The ability to adjust and optimize the paths that products take from origin to destination in response to changing conditions or requirements.

Work Centers

Specific locations in a manufacturing facility where certain processes or operations are performed.