customer cost accounting

Question 1

What do cost accounting rules do?

Answer 1

Cost accounting allows financial institutions to allocate non-interest income and expenses to their product lines.

Question 2

What is the function of cost accounting?

Answer 2

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).

Question 3

Which comes first:
Cost Accounting module
Customer Allocations module

Answer 3

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

Question 4

define SDE; what is it?

Answer 4

Strategic Database Extended; this is a database

Question 5

What do customer cost accounting rules do?

Answer 5

Customer Cost accounting allows you to allocate NII and NIE from your General Ledger to the appropriate customer accounts

Question 6

In Customer Cost accounting non-interest income is also known as?

Answer 6

In Customer Cost accounting non-interest income is also known as fees.

Question 7

In Customer Cost accounting non-interest expenses are also known as?

Answer 7

In Customer Cost accounting non-interest expenses are also known as operating costs.

Question 8

In Customer Cost accounting what are direct allocations?

Answer 8

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.

Question 9

In Customer Cost accounting what is the basis of direct allocations?

Answer 9

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.

Question 10

Give an example of the process of Direct Allocations in Customer Cost Accounting.

Answer 10

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

Question 11

In Customer Cost accounting what are Activity Based Allocations?

Answer 11

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.

Question 12

Give an example of the process of Activity Based Allocations in Customer Cost Accounting.

Answer 12

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.

Question 13

define CC Accounting

Answer 13

Customer Cost accounting

Question 14

define ABC Cost Accounting

Answer 14

Activity Based Costing

Question 15

What is another way to describe allocation rules?

Answer 15

Push down rules.

Question 16

What happens in the Customer Allocation Module?

Answer 16

In the Customer Allocation Module you set up the system rules to run customer cost accounting, assigning dollar amounts or percentages

Question 17

What happens in processing?

Answer 17

NII and NIE items are posted to the SDE customer records.

Question 18

what do Push Down Rules do?

Answer 18

Push Down Rules define how items are allocated to customer SDE accounts from your account records.

Question 19

What type of accounts are created using the General Maintenance module?

Answer 19

Account records that contain customer SDE accounts.

Question 20

What is the purpose off account records created by the General Maintenance module?

Answer 20

These account records serve as a central holding place for summary data to be used in reporting

Question 21

Why do we call it “push down?”

Answer 21

the SDE database is the primary customer-level accounting database