Choice "B" is correct. The three functional classifications for expenses incurred by a non-profit organization are: program services, management and general costs, and fund-raising and other supporting services. When common costs are incurred, they should be allocated to the appropriate classifications. Since Cancer Educators' $10,000 common costs were for program functions and fund-raising functions, the costs should be allocated to those two classifications only.
Choice "a" is incorrect. No part of the $10,000 common costs was for general services.
Choice "c" is incorrect. Part of the $10,000 relates to program services and must be allocated.
Choice "d" is incorrect. Part of the $10,000 relates to fund-raising services and must be allocated.