Which of the Following Is NOT a Requirement for a Not-For-Profit

question 9

Multiple Choice

Which of the following is NOT a requirement for a not-for-profit organization to record donated materials and services?

• A) The fair value of the donation can be determined.
• B) The organization uses the deferred contribution method of revenue recognition.
• C) The materials or services would normally have been used in the organization's operations.
• D)The not-for-profit organization would have purchased the goods or services if they had not been donated.

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Definitions:

Indirect Labor

Labor costs associated with employees that cannot be directly traced to the production of goods or services, such as maintenance and supervision.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and factory supplies, that cannot be directly traced back to a product.

Raw Materials

Unprocessed or minimally processed materials that are used as inputs in manufacturing and production processes.

Inventories

Stocks of goods and materials that a business holds for the purpose of resale or incorporation into their product.