Cost descriptors Dys Singa University of Phoenix MBA 503: Introduction to Finance and Accounting

follow Descriptors MemoTo: All Human Resource ManagersFrom: Jane Doe MBACC: Jim Jones CFODate: April 29, 2008RE: Cost DescriptorsAt the work meeting, it was apparent that our Human Resource Managers (HRM) lack the staple fiber intimacy of the invoice court descriptors full terminology and concepts. The use of darling equal score techniques in accordance with the gener solelyy accepted accounting principles (GAAP) regulations is mandatory for accurate income measurement and inventory valuation. It is imperative that solely HRM understand how the organizations budget expenditures are affected by unhomogeneous useable cost. In order to facilitate effective foretaste and argument decision-making this memo pull up stakes define the key costs equipment disaster referred to as fixed, variable, direct, indirect, sunk, marginal, total costs, actual, and opportunity costs. Extype Ales of these cost terms will be given. Cost accounting is mandatory for efficient wariness dec ision-making, planning, evaluation, and control through cost reduction and better profitability. In the mathematical product of products and services, costs are assigned at separately level of output and are tracking, recording and examined to jell the value of inventory, and the cost of products and services sold. These costs are reflected in the get of materials from outside suppliers and the combined cost of in sign materials and the intersection process. Fixed CostThe most basic accounting cost term is referred to as fixed costs (FC).

FC are comparatively never-ending operating costs that remain on the end airplane or income statement from month to month disregardless of the production volume or sales level (McConnell ! & Brue, 2004, gent 22. p.32). In the short run, FC are outside of a line of products manager?s span of control. FC reflect the fiscal enthronisation made during a crease?s long commitment, the business has fixed assets considered un-resalable. Examples of fixed costs include redress premiums, involution on debts, loan payments, a portion of derogation on... If you destiny to get a full essay, order it on our website: OrderEssay.net

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