Expense Allocation by
Accounting Classification
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Template for: SHU Expense Allocation by Accounting Classification
Expense Allocation by Accounting Classifications
The purpose of this (traditional) analysis is to list the expenses of the
horizontal unit according to standard accounting classifications. This
information is routinely lumped with accounting data from other business units
and other horizontal units in order to obtain aggregate results for the group
and the corporation as a whole.
This analysis is important - and it should be performed in addition to
the other more strategic analyses, rather than be replaced by them. Generally
Accepted Accounting Principles (GAAP) are here to stay, and GAAP reporting is
usually required by the corporate accounting department anyway.
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