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1. Who is responsible for setting up the business internal cost account structure?
The Finance department.
The business managers.
The cost account structure is determined by government agencies.
2. What does it mean to accrue costs at the end of a fiscal quarter or year?
The business management and finance will determine what portion of a cost that spans across the fiscal quarters or years occurred in the preceding quarter or year. That cost will be assigned then to the preceding year.
The business management and finance check to be sure all projects are on schedule, or if not, a new schedule is created.
Finance collects all the costs for the preceding quarter or year and assigns those to the correct cost account.
3. What are some typical considerations for setting up cost accounts?
Department, location, and cost type.
Which country the business is located in because the costs account structure is determined by law.
The amount of the transaction, month, and cost type.
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