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Virginia State University The Overhead Myth Discussion

 

Chapter 13 deals with indirect costs, otherwise known as overhead. Although it is commonly accepted that higher overhead costs are generally considered bad for a nonprofit (as shown in the text), this week’s video, “The Overhead Myth” highlights a popular theory that higher overhead costs aren’t always bad.

For this two-page (minimum) writing assignment, summarize both sides of this argument and state your opinion on the topic along with supporting facts. Finally, discuss other ways (beside overhead rates) to tell if an organization is wasting money or acting fraudulently.