Depreciation expense in a not-for-profit organization should be

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Depreciation expense in a not-for-profit organization should be assigned to or allocated to the functions to which it relates. This is because depreciation expense is a cost of using assets in various functions of the organization, and therefore should be recorded as an expense in those functions. Allocating depreciation expense to the appropriate functions also helps to provide a more accurate picture of the cost of each function, which is important for making informed decisions about the allocation of resources within the organization.

Depreciation Expense in a Not-For-Profit Organization Should Be