partment conducts operations at multiple physical locations, there may be separate summaries for each loca- tion. The example shown is indicative of most communications cost management functions. It is typical of that found in organiza- tions today in that it has a wide range of expense items required by the typical department manager, including headcount and payroll summary, office supplies, training, postage, equipment and software maintenance, etc. The items of concern are telephone expense, equip- ment, and software maintenance. Most enterprises don't include information about fixed assets in departmental expense summaries. Telephone expense is something of a catchall to the extent that the single line account summary may include depreciation of fixed assets as well as operating expense. This is more of an internal accounting system reporting structure than an accounting treatment issue. TABLE 12-2 Department: Communications Manager: John Smith Date: 09/30/03 Management Department number: 357 Location: 041 Headcount: 8 Expense Category (000 Omitted) Salaries Benefits Incentive Bonus Overtime Sub-Total Contract Labor Professional Services Office Supplies Telephone Expense Travel & Entertainment Training Tuition Reimbursement Rent-Space Utilization Heat, Light & Power Building Services Software Maintenance Equipment Maintenance Total Department 227 12 BUDGETING AND FINANCIAL PLANNING Accounting entries are made on a daily basis as operations proceed. At month's end, the books are closed and the process starts again for the following month. These accounting entries are actual amounts of money paid for goods, services, taxes or other items required by the organization to continue in business. For example, a long distance telephone call made in the past and invoiced by the service provider is input into the system and makes its way into the accounts payable for telephone service. When a piece of equipment is received and billed, the information from the invoice is entered into the accounts payable system, and when