Question

The Winfrow Foundation, a not-for-profit organization whose mission is to eliminate illiteracy, sent literature to local businesses describing the organization and asking for donations. Which of the criteria for allocating the costs of the mailing between fund-raising and program or management functions (i.e., joint-cost allocation) has not been met?

A) Audience.
B) Purpose.
C) Content.
D) None of the above joint-cost allocation criteria are met.

Answer 1

The criteria for allocating the costs of the mailing between fund-raising and program or management functions are audience, purpose, and content. In this case, the audience criteria has not been met.

Step-by-step explanation:

The criteria for allocating the costs of the mailing between fund-raising and program or management functions (i.e., joint-cost allocation) are:

1. Audience
2. Purpose
3. Content

In this case, the Audience criteria has not been met because it only mentions local businesses, which suggests that the mailing was targeted towards potential donors and not the specific audience the organization serves (illiterate individuals). Therefore, the costs of the mailing cannot be allocated between fund-raising and program or management functions.