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For nonprofit organizations, accounting for and understanding the true cost of activities, including the cost of distinct programs as well as the true cost of overhead, is essential for informed decision making. An effective and efficient cost allocation methodology is a key tool in this process. During this session, we explore the different cost allocation methodologies available, discuss how to decide which method to select and how to interpret and use the resulting financials to convey the organization's story.
Learning Objectives:
Identify the various cost allocation methodologies.
Determine how to choose a cost allocation method.
Analyze how effective cost allocations leads to understanding the true cost of activities.
