Shelter Analysis - What purposes are served by Shelter...

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What purposes are served by Shelter partnership’s cost information? Internal purposes - Analysis of operating efficiency. In this case, part of shelter resource bank (SRB) is similar to a logistics company, both in business of collection and distribution. The conference work under program development is akin to the conference management activities of event Management Company. Both companies use cost information and cost structure to evaluate the efficiency of their operation. The expense ratio is measured by the donations received to run the operation. If the expense ratio is low, it implies that a high proportion of donations are being used to directly contribute to the beneficiaries, instead of being used to run the fund raising activities. External purposes- Regulatory related. Nonprofit organizations are subjected to regulations hence SRB cost may be audited anytime to check misuse of donors contribution. Hence they need to capture appropriate cost info to comply with regulatory requirements. What are the cost objects?
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This note was uploaded on 01/16/2012 for the course MBA 101 taught by Professor Wormer during the Spring '08 term at Indian Institute Of Management, Ahmedabad.

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Shelter Analysis - What purposes are served by Shelter...

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