Which of the Following Is a Typical Classification of a Functional

question 32

Multiple Choice

Which of the following is a typical classification of a functional expense in a college or university?

• A) Academic wages and benefits.
• B) Student support.
• C) Institutional support.
• D) Depreciation.

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Definitions:

Year-End Costs

Expenses or costs incurred by a business at the end of the fiscal year; these may include adjustments, accruals, and prep for financial reporting.

Inventory Cost Flow

An accounting method that determines the value of sold inventory and ending inventory, can be FIFO, LIFO, or Average Cost.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue. It represents the company's bottom line.

Rising Prices

An economic situation characterized by a general increase in the prices of goods and services.