Check Your Knowledge: Quiz 1

Heather has asked if you can forward her your notes from Juan’s email on ‘Cost Principles.’ She is looking for a concise answer to what ‘Cost Principles’ are. What is the best answer to her email?

You are provided with a list of costs. You refer to the detailed guidance provided by the cost principles of your agency type (in this case, non-profit organizations). You need to determine the accounting treatment of each cost. How would you divide your costs in a list? 

Sheila has just submitted a list of costs to the Wilson Institute. The Chairperson realizes that she has ignored the (select the best answer) principles for selected items of cost. 

The applicability of a particular set of cost principles depends on the ____________ making the expenditure 

There is one caveat to an organization using its own cost principles. Each cost principle requirement must meet the standards as prescribed in _________.