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Herron Project, a not for profit organization whose mission is to inform the public about the Costs hazards of heroin and other drugs, sends out
Herron Project, a not for profit organization whose mission is to inform the public about the Costs hazards of heroin and other drugs, sends out brochures to a large number of doctors, asking that the brochures be placed in the doctors' waiting rooms. The three-page brochure contains a description of the addictive and destructive nature of drugs, but half of the last page contains an appeal for funds, in relatively large type. How should the entity report the $30,000 expense of preparing, printing, and distributing the brochure in its statement of activities? 14 Expenses slides a. The entire $30,000 must be reported as a fundraising expense. b. The entire $30,000 must be reported as a program expense. c. The $30,000 should be allocated between fundraising and program expenses, using appropriate cost accounting techniques. d. The $30,000 should be reported under the caption "Program and fundraising expenses
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