Not-For-Profit Entities

question 134

Multiple Choice

Not-for-profit entities

• A) do not use responsibility accounting.
• B) utilize responsibility accounting in trying to maximize net income.
• C) utilize responsibility accounting in trying to minimize the cost of providing services.
• D) have only noncontrollable costs.

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Definitions:

Units-Of-Production

A method of depreciation that allocates the cost of an asset over its useful life based on the amount of production or usage.

Units-Of-Production

A depreciation method that allocates an asset's cost based on its usage, output, or production, rather than the passage of time.

Modified Accelerated Cost Recovery System

A method of depreciation applied in the United States that allows for the accelerated write-off of property under the tax code.