§  36.121   General.

   (a) The costs of central office equipment are carried in the following
   accounts:
   Central Office Switching     Account 2210.
   Non-digital Switching        Account 2211.
   Digital Electronic Switching Account 2212.
   Operator Systems             Account 2220.
   Central Office—Transmission  Account 2230.
   Radio Systems                Account 2231.
   Circuit Equipment            Account 2232.

   (b) Records of the cost of central office equipment are usually
   maintained for each study area separately by accounts. However, each
   account frequently includes equipment having more than one use. Also,
   equipment in one account frequently is associated closely with
   equipment in the same building in another account. Therefore, the
   separations procedures for central office equipment have been designed
   to deal with categories of plant rather than with equipment in an
   account.

   (c) In the separation of the cost of central office equipment among the
   operations, the first step is the assignment of the equipment in each
   study area to categories. The basic method of making this assignment is
   the identification of the equipment assignable to each category, and
   the determination of the cost of the identified equipment by analysis
   of accounting, engineering and other records.

   (1) The cost of common equipment not assigned to a specific category,
   e.g., common power equipment, including emergency power equipment,
   aisle lighting and framework, including distributing frames, is
   distributed among the categories in proportion to the cost of
   equipment, (excluding power equipment not dependent upon common power
   equipment) directly assigned to categories.

   (i) The cost of power equipment used by one category is assigned
   directly to that category, e.g., 130 volt power supply provided for
   circuit equipment. The cost of emergency power equipment protecting
   only power equipment used by one category is also assigned directly to
   that category.

   (ii) Where appropriate, a weighting factor is applied to the cost of
   circuit equipment in distributing the power plant costs not directly
   assigned, in order to reflect the generally greater power use per
   dollar of cost of this equipment.

   (d) The second step is the apportionment of the cost of the equipment
   in each category among the operations through the application of
   appropriate use factors or by direct assignment.

   [ 52 FR 17229 , May 6, 1987, as amended at  69 FR 12549 , Mar. 17, 2004]