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L? K Federal Reserve Bank of Dallas, TEXAS 75265-5906 October 20, 1999, Notice 99-90 TO: The Chief Executive Officer of each financial institution and others concerned in the Eleventh Federal Reserve
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What is functional cost and profit?
Functional cost and profit refers to the expenses and revenues associated with the core operations of a business or organization. It represents the financial outcomes related to the main activities and processes that generate income.
Who is required to file functional cost and profit?
Businesses and organizations that are required to report their financial statements and activities to regulatory bodies or stakeholders, such as tax authorities or shareholders, are generally required to file functional cost and profit.
How to fill out functional cost and profit?
Filling out functional cost and profit involves compiling the relevant financial data, including expenses and revenues, related to the core operations of the business or organization. This information is then organized and presented in a financial statement format, such as an income statement or profit and loss statement.
What is the purpose of functional cost and profit?
The purpose of functional cost and profit is to provide valuable insights into the financial performance and efficiency of the core operations of a business or organization. It helps in evaluating profitability, identifying cost drivers, and making informed decisions regarding resource allocation and business strategy.
What information must be reported on functional cost and profit?
The information that must be reported on functional cost and profit includes all relevant expenses directly related to the core operations, such as production costs, marketing costs, and overhead expenses. Similarly, revenues generated through the primary activities of the business or organization should also be included.
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