12.2.4 Account Level Profitability Models

As with Management Ledger-level solutions, Account Level solutions are also frequently constructed using a combination of top-down and bottom-up processes. For example, you might employ top-down allocations to distribute Management Ledger-level income and expenses (expenses being more typical) to the instrument-level; and you might employ bottom-up processes such as account-level funds transfer pricing and/or allocation rules that employ unit costs and volumes to assign income and expenses (again, expenses being more typical) to instrument-level records (note that such low-level, bottom-up income and expense assignments may also be aggregated to the Management Ledger).