§  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]