Case Study : Evaluating a Fee Structure for a Not-for-Profit Community Foundation; A Case Study on Activity Based Costing = Case Study : Evaluating a Fee Structure for a Not-for-Profit Community Foundation; A Case Study on Activity Based Costing

다국어 초록 (Multilingual Abstract)

Objective: A case is presented that focuses on a not.for.profit organization which offers multiple services while having a costing base which is essentially fixed. At issue is determining a fee structure for the services provided. The organization is a community foundation which acts as custodian and disburser of several endowments designated for differing purposes. Methods: To assist in determining an appropriate fee structure, an activity based costing (ABC) analysis is employed in an attempt to provide decision.relevant product (endowment).level information. ABC provides an approach for allocating costs to products when costs are not directly or easily traceable to the products. Activity based costing is advocated for service and health care organizations, most of which have predominantly fixed costs. Results: The analysis presented uses an activity based costing approach to allocate the costs of the community foundation to its eight funds. The analysis provides insight with respect to the resources consumed by each of the products. In turn, the measures of this resource consumption may be used in determining an appropriate fee structure. Conclusion: The principles applied in this case are applicable to organizations with largely fixed costs and various services and products, such as hospitals and other health care organizations.