How Does a For-Profit Organization Record Contributions Made to a Private

question 11

Multiple Choice

How does a for-profit organization record contributions made to a private not-for-profit organization?

• A) As an expense when originally pledged.
• B) As a reduction in revenue when pledged.
• C) As an expense when contributed.
• D) As a reduction in revenue when contributed.

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Definitions:

Aggregate Plan

A plan that includes forecast levels for families of products of finished goods, inventory, shortages, and changes in the workforce.

Master Production Schedule

A plan for individual commodities to be produced in each time period, serving as a link between production planning and manufacturing.

Lot-For-Lot

A lot-sizing technique that generates exactly what is required to meet the plan.

Set Up Cost

Expenses associated with preparing equipment or facilities for a task, such as a production run or a new process.