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NTR Corporation has offices in both Los Angeles and San Francisco. In the Los Angeles office, the account number for cash is 1.101. In San Francisco, the account number for cash is 2.101. What type of coding system does NTR Corporation use?

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jepessoa

Answer:

Faceted Coding

Explanation:

Faceted coding system is basically a type of sequential coding. The main difference is that the first letters or numbers of the accounting codes represent different locations, departments, business units, stores, etc.

In this case, the first 1 in 1.101 denotes the Los Angeles office, while the 2 in 2.101 denotes the San Francisco office. Each period (or underscore, etc.) represents a different cost field or category. In this example, the .101 represents cash account.

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