How non-profits should allocate joint costs

Assignment Help Cost Accounting

Reference no: EM133032861

Description

Joint costs are used to compute total product costs or the purpose of determine a profit and a sale price. You need to calculate joint costs to
calculate inventoriable costs and cost of goods sold. However, as noted in the journal of accounting, not-for-profit entities (NFPs) are under constant pressure to devote an increasing portion of their expenditures to accomplishing their mission programs (disaster relief). However, money must be spent on administration (rent or leasing fees, utilities, etc), management functions (salaries, travel, blood donations, etc) and fundraising efforts. Pretend that you were donating funds to the Red Cross, propose ways that Red Cross should allocate funds donated from the general public. Also discuss the consequences, if donors or contributors restrict their donations to only disaster relief.

Question: "How Non-profits should allocate joint costs"

Article - How NFPs should allocate joint costs BY JOSEPH W. CRUITT

Reference no: EM133032861

Questions Cloud

What is the total amount of overhead applied to job : Direct labour hours per job are 3,750; 4,650; and 6,300 respectively. What is the total amount of overhead applied to Job #6

Explain the impact on globalisation : The COVID-19 pandemic has adversely affected international travel and also had an impact on globalisation.

Calculate the amount of depreciation expense : The actual units produced during its first 2 years of operation were 9,000 and 10,000 respectively. Calculate the amount of depreciation expense

Canadian law-case study : H suffered an ankle injury when she fell at the foot of an outside staircase beside the hotel that she worked. The poorly lit staircase went down a steep slope;

How non-profits should allocate joint costs : How Non-profits should allocate joint costs - discuss the consequences, if donors or contributors restrict their donations to only disaster relief

Compute the monthly instalment of the car loan : He is offered a simple flat rate of 2.3% for a loan of $84,000 for a period of 7 years. Compute the monthly instalment of the car loan

Case study on apple profitable but risky strategy : When Steven Jobs , Apple's Chief Executive launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company's strategy from th

What is the estimated value of inventory damaged : The merchandise saved from the flood has an estimated value of P 163,000. What is the estimated value of inventory damaged by the flood

Explaining the change phases in different leadership styles : Explaining the change phases in different Leadership Styles, what do you think is the most crucial/most consequential stage in this process and why?

User Account

All Pages