ABSTRACT
One of the most difficult questions for the management of any organization is how much to spend on different organization programs. Each organization has two types of programs: revenue-producing and overhead programs. Even nonprofit organizations have revenue-producing programs. These are usually fund-raising or something similar, which is used to raise funds to support the mission of the organization. For for-profit organizations, it is much more clear cut; the mission of the organization includes the selling of goods or services, which is to result in the organization making a profit. If it does not make a profit, it has not fulfilled its mission.
