In August 1991, Ruth Schwartz, executive director of Shelter Partnership, Inc., a nonprofit corporation that provided services for homeless people, was reviewing the way that she accounted for the costs of the organization's activities. Of particular concern to Ruth were the costs of her Shelter Resource Bank, a Partnership entity which collected donated goods and distributed them to homeless shelters.

Questions
1. What purposes are served by Shelter Partnership's cost information?
2. What are the cost objects?
3. Are Ruth Schwartz's estimates accurate enough?
4. Address the issues described in "The Concern" section of the ease.

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EXHIBIT 1 SHELTER PARTNERSHIP INC. Statement of Revenues and Expenses-1990 Budgeted 1990 Actual Percentage Revenue Core Income Foundations Private Fundraisers Public Grants Interest Income Other 5250,000 90,000 90,000 5,000 500 107% $268,000 79,196 40,000 2,601 52 56 90 Subtotal Core Income 5435,500 $390,075 Contract Income 100,000 10,000 50,000 4,000 103,946 6,000 County Other 1,900 164,000 156,617 5546,692 Subtotal, Contract income 95 91 TOTAL REVENUES 5599 500 xpenses Salarins Stalt Benefits & P.T.E 5291,058 53,044 3344 102 316,000 57000 Subtotal, Pessonne 5373,000 Other Expenses 23,000 16,000 5,000 20,523 15,582 5,589 6,810 Office Expenditures Postage 6,000 8,000 15,000 8,000 76 70 37 Printing Telephone Insurance Local Trave Non-locat Travet Cmty Tmg/Bd Education Training Education 5,640 11,968 2.925 6,373 2,715 1:210 4,000 2,500 6,000 1,500 20,000 34,000 5168,000 30 4,803 3,266 20,935 33,076 $146,170 Professional Fees Equipment/Software Sublotal, Other Expenses Independent Contractors Trucking Receptionist (Contrac Accountant 15,000 4,000 ,750 14,967 5,706 11,500 143 3,000 5 33,750 1,890 S34,063 Warehouse Temp, Labor Subtotal ind Contractors Subtotat, Nors Personne $201,750$180233 TOTAL EXPENSES FUND BALANCE 12/31/90 NET CHG TO FUND. BAL RUND BALANCE 12/31/89 $574,750 5524,335 $168,084 5 24.750 $143,334 5 22,357