The Purpose of a Statement of Functional Expenses Is to

question 21

Multiple Choice

The purpose of a statement of functional expenses is to

• A) Report on the net income of each program compared to that of supporting the programs.
• B) Report on program expenses and supporting expenses.
• C) Report on the natural expenses (object-of-expense),as well as program and support functions expenses.
• D) Report on the cash flows of each program and that of supporting the programs.

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Definitions:

Positive

A term that can refer to a favorable outcome or condition, or in statistics, a correlation where two variables move in the same direction.

Marginal Product

The extra production yielded from the use of one additional unit of a specific input while keeping all other inputs unchanged.

Labor

Refers to human effort, both physical and mental, used in the production of goods and services.

Output

Output is the quantity of goods or services produced by a company, industry, or economy within a specified period.