Definition: Functional classification
"Functional" classifications are designed to classify certain transactions of producers and of three institutional sectors, namely household, general government and non-profit institutions serving households. They are described as "functional" classifications because they identify the "functions" - in the sense of "purposes" or "objectives" - for which these groups of transactors engage in certain transactions. The classifications concerned are: Classification of individual consumption by purpose (COICOP), Classification of the functions of government (COFOG), Classification of the purposes of non-profit institutions serving households (COPNI) and Classification of outlays of producers by purpose (COPP) (SNA 1993, § [18.1]).
European Commission (Eurostat), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations (Statistics Division), World Bank, "System of National Accounts 2008", United Nations, New York, 2009