A Membership Pass to the YMCA a Private Not-For-Profit Organization

question 59

Multiple Choice

A membership pass to the YMCA a private not-for-profit organization includes unlimited rights to all facilities and a health magazine subscription. Non-members do not possess these rights. How must the YMCA account for membership dues?

• A) The dues are an exchange transaction, so it should report all dues in the year received.
• B) The dues are a non-exchange transaction, so it should report all dues in the year received.
• C) The dues are a non-exchange transaction, so it should report dues on a pro-rata basis determined by the length of the individual memberships.
• D) The dues are an exchange transaction, so it should report dues on a pro-rata basis determined by the length of the individual memberships.

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Definitions:

Currently Attainable Standard

This refers to a standard or benchmark that can be achieved under current operating conditions with reasonable efficiency.

Unfavorable Cost Variance

A variance that occurs when the actual cost exceeds the standard cost.

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.

Revenue Price Variance

The difference between the actual revenue received from selling a product and the expected revenue, based on standard pricing.