Triad Children's Center (TCC), a Non-Profit Organization, Uses Relevant Cost

question 86

Multiple Choice

Triad Children's Center (TCC) , a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The following relevant costs are expected if the program is accepted:TCC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program, funding will be received from the City Chamber of Commerce ($50,000) and a local Private University Endowment Fund ($35,000) .
In deciding between alternative choices for a given situation (such as the above new-program evaluation) , TCC may employ a five-step decision process. Which of the following is not a recommended step in this decision-making process?

• A) Evaluate performance.
• B) Specify the criteria and identify the alternative actions.
• C) Select and implement the best course of action.
• D) Perform relevant and strategic cost analysis.
• E) Review the completed financial audit report.

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Definitions:

Learned Frustration Response

A behavioral response developed over time in reaction to repeated frustrating situations or obstacles.

Learned Helplessness

A condition in which an individual learns to believe they are powerless to change a negative situation because previous attempts have been unsuccessful, leading to a lack of motivation or effort.

Incentive Motivation

involves the drive to pursue or engage in an activity for the purpose of gaining external rewards or avoiding negative outcomes, which serve as incentives for behavior.

Transformational Properties

relates to the ability of something, such as a mathematical function or a leadership style, to change or transform entities in a way that adds value or meaning.