The Program Expense Ratio Is a Measure of the Efficiency

question 112

True/False

The program expense ratio is a measure of the efficiency of a not-for-profit in utilizing resources to fulfill its mission, rather than for fund-raising and administration.

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Definitions:

Volume Of Activity

A measure of the quantity of work performed or production completed, often influencing costs and revenues in businesses.

Policies And Procedures

Systematic guidelines set by an organization to direct and align its activities and decisions in a consistent manner.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent or salaries.

Model

A simplified representation, often mathematical, of a system or process used to analyze behavior, make predictions, or inform decision-making.