With Respect to the Statement of Cash Flows for a Private

question 19

True/False

With respect to the Statement of Cash Flows for a private not-for-profit organization, donor restricted cash that must be used for long term purposes is classified as cash flows from financing activities.

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Definitions:

Cost Of Goods Manufactured

The total cost of making and finishing a product.

Variable Manufacturing Costs

Expenses that vary proportionally with production volume, such as materials and labor.

Variable Costing

A costing method where only variable production costs are included in product costs, with fixed overhead costs treated as period expenses.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are a significant portion of the production cost.