Code of Massachusetts Regulations › 220 CMR - DEPARTMENT OF PUBLIC UTILITIES › Title 220 CMR 50.00 - Uniform System Of Accounts For Gas Companies › OPERATION AND MAINTENANCE EXPENSE ACCOUNTS CLASS A COMPANIES › 5 - SALES EXPENSES › Operation › Section 913 - Advertising Expenses

Current through Register 1525, July 5, 2024
This account shall include the cost of labor, materials
			   used and expenses incurred in advertising designed to promote or retain the use
			   of utility service, except advertising the sale of merchandise by the
			   utility.
ITEMS
Labor:
1. Direct
			 supervision of department.
2.
			 Preparing advertising material for newspapers, periodicals, bill- boards, etc.,
			 and preparing and conducting motion pictures, radio and television
			 programs.
3. Preparing booklets,
			 bulletins, etc., used in direct mail advertising.
4. Preparing window and other
			 displays.
5. Clerical and
			 stenographic work.
6. Investigating
			 advertising agencies and media and conducting negotiations in connection with
			 the placement and subject matter of sales advertising.
Materials and Expenses:
7. Advertising in newspapers, periodicals,
			 billboards, radio, etc., for sales promotion purposes, but not including
			 institutional or goodwill advertising includible in account 930, Miscellaneous
			 General Expenses.
8. Materials and
			 services given as prizes or otherwise in connection with canning, or cooking
			 contests, bazaars, etc., in order to publicize and promote the use of utility
			 services.
9. Fees and expenses of
			 advertising agencies and commercial artists.
10. Novelties for general
			 distribution.
11. Postage on direct
			 mail advertising.
12. Premiums
			 distributed generally, such as recipe books, etc., when not offered as
			 inducement to purchase appliances.
13. Printing booklets, dodgers, bulletins,
			 etc.
14. Supplies and expenses in
			 preparing advertising material.
15.
			 Office supples and expenses.
NOTE A. - The cost of advertisements which set forth
				the value or advantages of utility service without reference to specific
				appliances, or, if reference is made to appliances, invite the reader to
				purchase appliances from his dealer, or refer to appliances not carried for
				sale by the utility, shall be considered sales promotion advertising and
				charged to this account. However, advertisements which are limited to specific
				makes of appliances sold by the utility and prices, terms, etc., thereof,
				without referring to the value or advantages of utility service, shall be
				considered as merchandise advertising and the cost shall be charged to account
				415, Income from Merchandising, Jobbing and Contract Work.
NOTE B. - Advertisements which substantially mention or
				refer to the value or advantages of utility service, together with specific
				reference to makes of appliances sold by the utility and the price, terms,
				etc., thereof, and designed for the joint purpose of increasing the use of
				utility service and the sales of appliances, shall be considered as a
				combination advertisement and the costs shall be distributed between this
				account and account 415, Income from Merchandising, Jobbing and Contract Work,
				on the basis of the estimated space used for each purpose.
NOTE C. - Exclude from this account and charge to
				account 930, Miscellaneous General Expenses, the cost of publication of
				stockholder reports, dividend notices, bond redemption notices, financial
				statements, and other notices of a general corporate character. Exclude also
				all institutional or good will advertising. (See account 930, Miscellaneous
				General Expenses.)