A Gift-In-Kind,for Which the Not-For-Profit Entity Has No Discretion on Disposition,should

question 25

Multiple Choice

A gift-in-kind,for which the not-for-profit entity has no discretion on disposition,should be accounted for by the not-for-profit,nongovernmental entity as

• A)a special purpose contribution.
• B)an exchange transaction.
• C)an agency transaction.
• D)a conditional promise to give.

---

Definitions:

Machine Hours

The total number of hours that machines are used or operated during a specific time period, often used as a basis for allocating manufacturing overhead.

Direct Labor Hour

A measure of the time spent by workers manufacturing a product or delivering a service.

Special Materials

Unique or unusual materials required for specific production processes or products, often implying additional cost or procurement effort.

Step-fixed Costs

Expenses that remain constant over a range of production but can change when production exceeds certain levels.