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item?LongDescriptionFlowchartdepictingtheprocess usedtoclassifyaniteman expenseoran investment. Processbegins withdecisionpointquestion "Centrally managed/assetcontrolitem?" I fNOtheprocessmovesto"I temunitcostexceeds investment/expense threshold?" I fNOclassifyas expense,ifYESclassifyas an investment.TheYESpathfrom decisionpointquestion "Centrally managed/assetcontrolitem?" is as follows.I f YES goto"I tem purchased from DWCF?" I fNOclassifyas an Investment,ifYES goto"I tempartofa full fundingeffort?" I f YESclassifyas an investment,ifNOclassifyas an expense.EXPENSE
BCF221IntermediateFinancial Management ConceptsLesson5.2>Appropriations>Investment/ExpenseTableofcontentsExpense and I nvestment AppropriationsThetable identifies whichappropriationscategoriesare classified as expense, investment,orboth. CostsbudgetedintheOperation andMaintenance(O&M) and MilitaryPersonnel (MJLPER) appropriations areconsidered expenses.CostsbudgetedintheProcurementand MilitaryConstruction(MJLCON) appropriations are consideredinvestments.CostsbudgetedintheResearch,Development,Test, and Evaluation (RDT&E), Base Realignment andClosure (BRAC), and Family Housing appropriations includebothexpenses and investments.DoDAppropriation AttributesO&MExpenseInvestment and ExpenseRDT&E2e eProcurementInvestmentInvestmentMILCONMILPERSExpense!Page3of S!BackNext
BCF221IntermediateFinancial Management ConceptsLesson5.2>Appropriations>Investment/ExpenseTableofcontentsExpense and I nvestment ExceptionsAlthoughthecostclassifications as expenses andinvestmentsgenerally holdtrue, sometimescoststhatmightnormally bethoughtofas expenses arefinanced as investments, while inothercases,theExpenseoppositemay betrue.Examples• Expenses (forexample,labor) incurred aspartoftheproductionofan investmentitem(forexample, weapon system) aretreatedasinvestmentcosts.Investment• Minorconstructionprojectscostinglessthana specified threshold are considered expensesratherthaninvestments.Thethreshold,established by Congress, wasmostrecentlyraisedto$1,000,000 bythe2015 NationalDefense AuthorizationAct.!Page4of S!BackNext
BCF221IntermediateFinancial Management ConceptsLesson5.2>Appropriations>Investment/ExpenseTableofcontentsKnowledge ReviewUsethedropdown menu ontherighttoidentifytheappropriation as an Expense,InvestmentorExpenseandInvestment. SelectCheck Answerwhen youhaveselectedallofyouranswers.AppropriationCategoryExpense/Investment1.MILPERSExpense2.O&MExpense3 .MILCONInvestment4. RDT&EExp andInvest5 .ProcurementInvestmentCbeekAn_swer1.MILPERSis anExpense2.O&Mis anExpense3 .MILCON is anInvestment4. RDT&Eis anExpenseandInvestment5.Procurementis anInvestment!

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Term
Fall
Professor
N/A
Tags
United States Congress, United States Code, U S Congress, bona fide needs

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