Not-For-Profits Can Report Expenses by Nature and Function

question 10

Multiple Choice

Not-for-profits can report expenses by nature and function:

• A) In the notes to the financial statements.
• B) As a separate financial statement.
• C) In the statement of activities.
• D) All of the options are correct.

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Definitions:

AVC

Average Variable Cost; the cost of variable inputs divided by the quantity of output produced.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

MC

Marginal Cost, the change in total cost that arises when the quantity produced is incremented by one unit.

ATC

Average Total Cost refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.