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

salute 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 prefatory intimacy of the invoice court descriptors margininology and concepts. The use of near(a) equal bill 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 entirely HRM understand how the organizations budget expenditures are affected by unhomogeneous usable cost. In order to facilitate effective foretaste and byplay decision-making this memo bequeath define the key costs equipment happening 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 focusing decision-making, planning, evaluation, and control through cost reduction and better profitability. In the employment of products and services, costs are assigned at each level of output and are tracking, recording and examined to jell the rate of inventory, and the cost of products and services sold. These costs are reflected in the barter for of materials from outside suppliers and the combined cost of in sign materials and the employment process. Fixed CostThe most basic accounting cost term is referred to as fixed costs (FC).

FC are comparatively unceasing operating costs that remain on the end plane or income statement from month to month disr egardless of the production volume or sales ! level (McConnell & Brue, 2004, fracture 22. p.32). In the short run, FC are outside of a moving in manager?s span of control. FC reflect the fiscal investing made during a melody?s long commitment, the business has fixed assets considered un-resalable. Examples of fixed costs include redress premiums, post on debts, loan payments, a portion of derogation on... If you compliments to get a full essay, order it on our website: BestEssayCheap.com

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