customer cost accounting Flashcards
(21 cards)
What do cost accounting rules do?
Cost accounting allows financial institutions to allocate non-interest income and expenses to their product lines.
What is the function of cost accounting?
When you execute cost accounting you import income and expenses from the general ledger system in order to allocate top down (departments, branches, and product lines).
Which comes first:
Cost Accounting module
Customer Allocations module
Cost Accounting module allocates income and expenses to branches, products and/or activities Customer Allocations module further allocates NII and NIE balances to customer account records in the SDE
define SDE; what is it?
Strategic Database Extended; this is a database
What do customer cost accounting rules do?
Customer Cost accounting allows you to allocate NII and NIE from your General Ledger to the appropriate customer accounts
In Customer Cost accounting non-interest income is also known as?
In Customer Cost accounting non-interest income is also known as fees.
In Customer Cost accounting non-interest expenses are also known as?
In Customer Cost accounting non-interest expenses are also known as operating costs.
In Customer Cost accounting what are direct allocations?
In Customer Cost accounting, direct allocations are where fees and costs are allocated to products and then posted directly to the customer account records associated with these products.
In Customer Cost accounting what is the basis of direct allocations?
In Customer Cost accounting the basis of direct allocations are on the number of these customer account records or the account balances and selected by NIE or NII code.
Give an example of the process of Direct Allocations in Customer Cost Accounting.
For example, the Data Processing expense for Check Processing could be allocated to the institution’s Checking Account product and ten allocated evenly to every customer account record for that product type; for this fee you can post the same amount to every customer account record or the fee or cost could be allocated by percentage so that larger amounts are allocated to customer accounts with larger balances
In Customer Cost accounting what are Activity Based Allocations?
In Customer Cost accounting, Activity Based Allocations are where fees and costs are allocated to activities and then posted directly to the account records which generated those activities.
Give an example of the process of Activity Based Allocations in Customer Cost Accounting.
For example, for Data Processing expense for Check Processing would be posted to the Check Processing activity type, and then posted to each customer account for the Checking Account product, based on the number of checks processed for each account.
define CC Accounting
Customer Cost accounting
define ABC Cost Accounting
Activity Based Costing
What is another way to describe allocation rules?
Push down rules.
What happens in the Customer Allocation Module?
In the Customer Allocation Module you set up the system rules to run customer cost accounting, assigning dollar amounts or percentages
What happens in processing?
NII and NIE items are posted to the SDE customer records.
what do Push Down Rules do?
Push Down Rules define how items are allocated to customer SDE accounts from your account records.
What type of accounts are created using the General Maintenance module?
Account records that contain customer SDE accounts.
What is the purpose off account records created by the General Maintenance module?
These account records serve as a central holding place for summary data to be used in reporting
Why do we call it “push down?”
the SDE database is the primary customer-level accounting database
