Sec. 32.6535  Engineering expense.

    (a) This account shall include costs incurred in the general 
engineering of the telecommunications plant which are not directly 
chargeable to an undertaking or project. This includes developing input 
to the fundamental planning process, performing preliminary work or 
advance planning in connection with potential undertakings, and 
performing special studies of an engineering nature.
    (b) Credits shall be made to this account for amounts transferred to 
construction accounts. These amounts shall be computed on the basis of 
direct labor hours. (See Sec. 32.2000(c)(2)(ii) of subpart C.)