According to FASB, Which of the Following Is Not Something

question 48

Multiple Choice

According to FASB, which of the following is not something that distinguishes a not-for-profit organization from a business?

• A) Absence of ownership interests
• B) Operating purposes other than to provide goods or services at a profit
• C) Lack of ability to earn a profit
• D) Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return

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Definitions:

Benefit Segmentation

A marketing approach that entails categorizing a market by the varied benefits consumers desire from the product.

Concentrated Targeting

A marketing strategy where a business focuses its efforts on a narrowly defined market segment or niche, rather than trying to appeal to a broader market.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Those costs, primarily labor and materials, that vary with production volume.