A Good Measure That Can Be Used to Help Assess

question 15

Multiple Choice

A good measure that can be used to help assess whether a not-for-profit organization is spending too much on overhead, such as general and administrative expenses, is:

• A) Percentage of unrestricted net assets to operating expenses.
• B) Current ratio.
• C) Total revenues divided by total expenses.
• D) Percentage of program expenses to total expenses.

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Definitions:

Closed-Loop System

A system that uses feedback to control the state or output of the system. It is designed to automatically adjust, correct, or compensate for changes to maintain the desired output.

Disintermediation

The removal of intermediaries in the supply chain, allowing producers to sell directly to consumers.

Delivery Of Products

The process of transporting goods from a seller to the purchaser’s location or making them available for collection.

Intermediaries

Entities that act as middlemen in the distribution chain between producers and consumers or between different businesses.