§ 32.5999   General.

   (a) Structure of the expense accounts. (1) The expense section of the system
   of  accounts  shall be organized by expense group summary account, and
   subsidiary record category (if required).

   (2) The expense section of this system of accounts shall be comprised of
   four major expense groups—Plant Specific Operations, Plant Nonspecific
   Operations, Customer Operations and Corporate Operations. Expenses to be
   recorded in Plant Specific and Plant Nonspecific Operations Expense Groups
   generally  reflect cost associated with the various kinds of equipment
   identified in the plant asset accounts. Expenses to be recorded in the
   Customer Operations and Corporate Operations accounts reflect the costs of,
   or are associated with, functions performed by people, irrespective of the
   organization in which any particular function is performed.

   (3) Accounts shall be maintained as prescribed in this section subject to
   the  conditions  described  in  § 32.13 in subpart B. Subsidiary record
   categories  may  be required below the account level by this system of
   accounts or by Commission order.

   (b) Plant Specific Operations Expense. (1) The Plant Specific Operations
   Expense Accounts, 6110 through 6441, are used to record costs related to
   specific kinds of telecommunications plant.

   (2) The Plant Specific Operations Expense accounts predominantly mirror the
   telecommunications  plant  in service detail accounts and are numbered
   consistently with them; the first digit of the expense account being six (6)
   and the remaining digits being the same as the last three numbers of the
   related plant account. In classifying Plant Specific Operations expenses,
   the text of the corresponding plant account should be consulted to ensure
   appropriateness.

   (3) The Plant Specific Operations Expense accounts shall include the costs
   of  inspecting,  testing (except as specified in Account 6533, Testing
   Expense) and reporting on the condition of telecommunications plant to
   determine the need for repairs, replacements, rearrangements and changes;
   performing routine work to prevent trouble (except as specified in Account
   6533), replacing items of plant other than retirement units; rearranging and
   changing the location of plant not retired; repairing material for reuse;
   restoring the condition of plant damaged by storms, floods, fire or other
   casualties (other than the cost of replacing retirement units); inspecting
   after repairs have been made; and receiving training to perform these kinds
   of work. Also included are the costs of direct supervision (immediate of
   first-level) and office support of this work.

   (4) In addition to the activities specified in paragraph (b)(3) of this
   section, the appropriate Plant Specific Operations Expense accounts shall
   include the cost of personnel whose principal job is the operation of plant
   equipment, such as general purpose computer operators, aircraft pilots,
   chauffeurs and shuttle bus drivers. However, when the operation of equipment
   is performed as part of other identifiable functions (such as the use of
   office equipment, capital tools or motor vehicles), the operators' cost
   shall be charged to accounts appropriate for those functions. (For costs of
   operator services personnel, see Accounts 6621, Call completion services,
   and 6622, Number services, and for costs of test board personnel see Account
   6533.)

   (c) Plant nonspecific operations expense. The Plant Nonspecific Operations
   Expense accounts shall include expenses related to property held for future
   telecommunications use, provisioning expenses, network operations expenses,
   and depreciation and amortization expenses. Accounts in this group (except
   for Account 6540, Access expense, and Accounts 6560 through 6565) shall
   include the costs of performing activities described in narratives for
   individual accounts. These costs shall also include the costs of supervision
   and office support of these activities.

   (d) Customer Operations Expense. The Customer Operations Expense accounts
   shall include the cost of performing customer related marketing and services
   activities described in narratives for individual accounts. These costs
   shall also include the costs of supervision, office support and training for
   these activities.

   (e) Corporate Operations Expense. The Corporate Operations Expense accounts
   shall include the costs of performing executive and planning activities and
   general and administrative activities described in narratives for individual
   accounts. These costs shall also include the costs of supervision, office
   support and training for these activities.

   (f) Reimbursements. Reimbursements of actual costs incurred in connection
   with joint operations or projects repairing plant due to damages by others,
   and obligations to make changes in telecommunications plant (such as highway
   relocations), shall be credited to the accounts originally charged.

   (g) Expense accounts to be maintained.
   Account title Class A
   account Class B
   account
   Income Statement Accounts
   Plant specific operations expense:
   Network support expense 6110
   Motor vehicle expense 6112
   Aircraft expense 6113
   Tools and other work equipment expense 6114
   General support expenses 6120
   Land and building expenses 6121
   Furniture and artworks expense 6122
   Office equipment expense 6123
   General purpose computers expense 6124
   Central office switching expense 6210
   Non-digital switching expense 6211
   Digital electronic switching expense 6212
   Operators system expense 6220 6220
   Central office transmission expenses 6230
   Radio systems expense 6231
   Circuit equipment expense 6232
   Information origination/termination expense 6310
   Station apparatus expense 6311
   Large private branch exchange expense 6341
   Public telephone terminal equipment expense 6351
   Other terminal equipment expense 6362
   Cable and wire facilities expenses 6410
   Poles expense 6411
   Aerial cable expense 6421
   Underground cable expense 6422
   Buried cable expense 6423
   Submarine and deep sea cable expense 6424
   Intrabuilding network cable expense 6426
   Aerial wire expense 6431
   Conduit systems expense 6441
   Plant nonspecific operations expense:
   Other property plant and equipment expenses 6510
   Property held for future telecommunications use expense 6511
   Provisioning expense 6512
   Network operations expenses 6530
   Power expense 6531
   Network administration expense 6532
   Testing expense 6533
   Plant operations administration expense 6534
   Engineering expense 6535
   Access expense 6540 6540
   Depreciation and amortization expenses 6560
   Depreciation expense—telecommunications plant in service 6561
   Depreciation expense—property held for future telecommunications use 6562
   Amortization expense—tangible 6563
   Amortization expense—intangible 6564
   Amortization expense—other 6565
   Customer operations expense:
   Marketing 6610
   Product management and sales 6611
   Product advertising 6613
   Services 6620
   Call completion services 6621
   Number services 6622
   Customer services 6623
   Corporate operations expense:
   General and administrative 6720 6720
   Provision for uncollectible notes receivable 6790 6790

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  52 FR 7580 , Mar. 12, 1987;  64 FR 50008 , Sept. 15, 1999;  65 FR 16335 , Mar. 28, 2000;  67 FR 5694 , Feb. 6, 2002;
    69 FR 53651 , Sept. 2, 2004]

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