Working Capital Ratio for a Not-For-Profit Is the Ratio: Current

question 138

True/False

Working capital ratio for a not-for-profit is the ratio: current assets divided by total expenses.

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Definitions:

Material Price Variance

The variance that arises when the actual price paid for materials differs from the standard or expected price, affecting production costs.

Fixed Contract Price

A predetermined and agreed-upon amount that will be paid for the delivery of goods or services under a contract, regardless of changes in costs or expenses.

Labour Efficiency Variance

Labour efficiency variance is the difference between the actual hours of labor consumed to produce a good or service and the standard hours expected, measured to assess productivity performance.

Direct Labour Standard

The benchmark or norm for the amount of labor time that is considered necessary to produce a unit of product under standard operating conditions.