The primary reason that not$-$for$-$profit $($NFP$)$ organizations should report

expenses incurred for program purposes separately from those for supporting

services such as management and general and fund$-$raising is that

Multiple Choice

GASB standards require it$.$

Program managers need information about the cost of

activities for which they are responsible.

Top managers need to know how much they are

spending for nonprogrammatic management and general

support.

Donors, potential donors, oversight bodies, and others

need to know what percentage of total expenses are

being incurred for carrying out the NFP$\text{'}$s programs.