In Accordance with the FASB Codification, Which of the Following

question 75

Multiple Choice

In accordance with the FASB Codification, which of the following would not be classified as a support expense by the not-for-profit organization Save Our Lakes?

• A) The cost of printing and distributing the annual report.
• B) The cost of a mailing to past contributors requesting donations for lakeshore cleanup.
• C) The cost of the annual lakeshore cleanup activities.
• D) The cost to have an attorney review the organization's by-laws.

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Definitions:

Absorption Costing

Absorption Costing is a method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Operating Income

Profit generated from a company's regular business operations, excluding deductions for interest and taxes.

Property Tax Expense

The amount paid by property owners to municipal or local governments based on the assessed value of their property.

Controllable Cost

An expense that can be directly controlled or influenced by a manager or decision maker within a specific timeframe.