When a non-profit organization combines fund-raising efforts with educational materials or program services, the total combined costs incurred are:
Reported as fund-raising costs.
Reported as management and general expenses.
Allocated between fund-raising and program services expenses using an appropriate allocation basis.
Reported as program services expenses.
Choice "C" is correct. An allocation, using an appropriate allocation basis, must be made between the fund-raising activities and educational materials or program services where the costs are combined.
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