Assume the Following Facts About a Firm Would a Lock Box System That Reduces Check Clearing Time

question 22

Multiple Choice

Assume the following facts about a firm: $\begin{array}{lr}\text {Antulal cost to maint ain a lock box }&\$1,500\\\text {system Cost to processs each check }&\$0.15\\\text {Average amount of each check received }&\$1,500\\\text { Number of checks received per year}&4,000\\\text { Interest rate on borrowed funds}&8.0\%\\\end{array}$
Would a lock box system that reduces check clearing time from six to three days be justified?

• A) Yes, because it would save more than $1,800 annually.
• B) No, because it would cost $2,100 annually.
• C) Yes, because of the additional convenience of a shorter clearing time.
• D) Indifferent, the cost and expense are about the same.

Understand the regulatory requirements for nonprofit organizations including the necessity of public financial disclosures.

Identify different types of program evaluation metrics (inputs, activities, outputs, outcomes) within nonprofit organizations.

Recognize the mechanisms by which nonprofit organizations are held accountable (rule of law, self-regulation, transparency).

Conduct and understand financial assessments such as cost-benefit analysis for nonprofit programs.

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Definitions:

Semi-structured Interview

An interviewing method that uses both predetermined questions and the flexibility to explore responses more deeply as needed.

Participants

Individuals who take part in a study or experiment, often used to gather data in research contexts.

Research Study

A systematic investigation designed to develop or contribute to generalizable knowledge.

Self-report Measures

Assessment tools that rely on individuals' own accounts of their feelings, thoughts, or behaviors, often through questionnaires or interviews.