Question
A fundraising effort of a charitable organization was to send a mass mailing to everyone who donated to the organization during the past three years.
A fundraising effort of a charitable organization was to send a mass mailing to everyone who donated to the organization during the past three years. The mass mailing included a pamphlet that discussed the need for and construction plans of the education building, a pledge card, and a return envelope. The cost per item in the mailing is as follows: pamphlet - $3.50, pledge card - $1.25, return envelope - $1.25, mailing envelope - $0.75, and postage $0.44. The mailing went to 1,000 people.
a. Does the activity meet the criteria for allocating joint costs?
b. How would you allocate the joint costs?
c. List the functional classifications of expenses and place the costs within the appropriate classifications.
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