Charity accounts part 14: cost allocation

This article, the last in our series on charity accounts, will focus on cost allocation and outlines which costs should fall under which headings as well as outlining the various problems that arise with cost allocation in company accounts

In company accounts, the bottom line is more often than not regarded as the all-important figure but this is certainly not true in the case of charities. Costs are disclosed in charity accounts under functional headings (such as expenditure on raising funds and charitable activities). However, costs shown by natural headings (such as salaries, rent, rates, etc.) can be of equal importance to the user of the accounts.

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