When the Actual Amount of Expenditure Is More Than the Budgeted

question 127

True/False

When the actual amount of expenditure is more than the budgeted amount,it is recorded as an "unfavorable" variance.

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Definitions:

Contract Failure

A situation where the market fails to provide an efficient outcome, leading to a gap that nonprofits often aim to fill.

Open System

An organizational or systemic concept where continuous interaction with the environment is necessary for sustainability and growth.

Nonprofit Organization

An entity that operates for a purpose other than making a profit, often focusing on philanthropic, educational, or social missions.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or organization.