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Using annual reports to find allocated costs

Retrieve ACS financials (attached) and note how they allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report.

If you cannot identify specific actual amounts, make reasonable estimates for the report. When you make estimates indicate the method used to derive such numbers.

Response shows how students can pick out the needed information and simplify this type of task (which can seem overwhelming at first). (Hint: The biggest issue is what to ignore!)


Solution Preview

So, you have picked a great report for this assignment because, unlike the typical for-profit business, non-profit organizations do a great job of allocating and showing expenses by program and type! Good work.

Now, you need to create a statement of activity without all this lovely detail. You can remove the four programs in the statement ...

Solution Summary

Using the American Cancer Society as an example, this instructs the students on how to find allocated costs and how those allocations impact the reporting. It indicates what might happen without the allocation.

about 250 words, no references