Why Do Most Nonprofit Organizations Face Substantial Difficulties in Implementing

question 79

Multiple Choice

Why do most nonprofit organizations face substantial difficulties in implementing management control systems?

• A) The outputs of nonprofit organizations are easy to measure.
• B) It is difficult to measure the quantity of outputs from nonprofit organizations.
• C) It is difficult to measure the quality of outputs from nonprofit organizations.
• D) B and C

---

Definitions:

Net Operating Income

A measure of a company's profitability calculated by subtracting operating expenses from operating revenues, excluding non-operating income and expenses.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Unit Product Cost

The total cost incurred to produce, market, and distribute a single unit of a product.

Variable Costing

This is an accounting method that only includes variable costs—costs that change with production volume—in the calculation of product cost.