Why Might a Manager for a Non-Profit Organization Seem as Concerned

question 53

Multiple Choice

Why might a manager for a non-profit organization seem as concerned with his or her organization's financial well-being as a for-profit manager?

• A) Non-profit managers are evaluated on financial performance only.
• B) Non-profit managers try to give the illusion that they care about the "bottom line."
• C) Many not-for-profit organizations have tight budgets and must be very efficient.
• D) Non-profit organizations have an obligation to turn a profit.

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Definitions:

Physical Units Method

An approach to costing that assigns costs based on the actual physical quantity of output produced.

Process Further

The action or decision to continue the production or refinement of a product beyond the initial stages to improve its value or quality.

Profit Difference

The variance between the estimated profit and the actual profit realized, indicating effectiveness of financial management and operations.

Weight Allocation

Weight allocation refers to the method of assigning proportions of a total, such as costs or resources, based on the relative weight or importance of various components or activities.