# Harbor City Community Center

981 words 4 pages
1) In and FPO context, full-cost accounting can be used to define cost objects. However, since NPOs are not outputting products, full-cost accounting is used to serve a different purpose of cost allocation. Full-cost accounting allows an NPO to be broken down into cost centers, which Young suggests be thought of as “buckets” during the Stage 1 analysis. The two categories of centers are mission centers and cost centers. The mission centers deal with the NPO’s main purpose, generally charging for a service, which is why it can be called a “revenue center”. The other type of center is a service center, which serves the purpose of accumulating the costs of activities to support the mission center. Three methods of

The difference between the two systems is crucial because it can impact how costs are allocated throughout the cost centers from one NPO to the next. One context not mentioned in the book that the process system may be applicable to an NPO is if there was a clinic that gave vaccinations out to homeless. A hybrid system may be more appropriate for a mental care facility that has uniform types of meals and medicines that can be considered roughly identical but not knowing how much is the cost for each patient.
Case Discussion:
The 10% increase in cost for each department (Homemaker Service through Referral and Placement), excluding the other expenses below, would be
940,000 x 1.10 = \$1,034,000
The additional other expenses total \$508,000, making a total cost of \$1,542,000.

Additional T&E expenses are calculated by taking the 4,000 T&E Usage multiplied by a 10% growth by department, making 4,400.
4,400 x \$16(hourly rate) = \$70,400
Total Cost Per Visit = 1,542,000 + 70,400 = \$1,612,400

The 10% increase in client growth would be:
32,900 x 1.10 = 36,190 client visits

Average Cost Per Visit = Total Cost Per Visit/Number of Client Visits = 1,612,400/36,190 = \$44.55

I would like to start off by saying that I was not sure how she planned on calculating rent, how she planned on incorporating the T&E costs, which she even said was confusing. This new calculation, though, can help Ms. Conaway in

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