Even Though a Church Is Exempt Under § 501(c)(3), It

question 47

True/False

Even though a church is exempt under § 501(c)(3), it is required to obtain IRS approval for its exempt status.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor costs.

Economic Profit

Economic profit is the difference between total revenue and total costs, including both explicit and implicit costs, measuring the profit that exceeds the next best alternative use of resources.

Short Run

A period in economics during which at least one input is fixed and cannot be changed, limiting the ability of a firm to adjust to market changes.

Fixed Inputs

Resources used in the production process whose quantity cannot easily be changed in the short run, such as buildings and machinery.