A voluntary health and welfare organization developed and printed informational materials which were intended to both educate the public about how its resources are used to help people in need and to also appeal to the public for much needed support.In this situation,the cost of the informational materials should be
A) accounted for as fund-raising expense.
B) allocated to expenses for program services.
C) allocated between expenses for program services and fund-raising expense.
D) accounted for as management and general expense.

Question

Quizplus · Accepted Answer

The cost of the informational materials should be allocated between expenses for program services and fundraising expense as it serves both purposes, educating the public about the organization's services and appealing for much-needed support. Allocating it to only fundraising expense would not accurately reflect the purpose of the materials, while allocating it solely to program services would not accurately reflect the cost of fundraising. Accounting for it as management and general expense would also not be appropriate as the materials directly relate to the organization's mission and fundraising efforts.

A Voluntary Health and Welfare Organization Developed and Printed Informational