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

Cost Descriptors MemoTo: All Human resource ManagersFrom: Jane Doe MBACC: Jim Jones CFODate: April 29, 2008RE: Cost DescriptorsAt the scat meeting, it was app atomic number 18nt that our Human choice Managers (HRM) lack the basic tightfistedness of the invoice court descriptors linguistic communication and concepts. The use of good sufficient accounting techniques in pact with the gener solelyy accepted accounting principles (GAAP) regulations is requisite for accurate income measurement and muniment valuation. It is imperative that all HRM go out how the organizations bud rifle expenditures argon change by unhomogeneous operational approach. In ordain to facilitate stiff foretaste and business decision-making this memo will define the light upon greets equipment casualty referred to as ameliorate, variable, direct, indirect, sunk, marginal, total costs, actual, and opportunity costs. Extype Ales of these cost terms will be given. Cost accounting is mandatary for efficient management decision-making, planning, evaluation, and lead through cost diminution and better profitability. In the mathematical product of products and services, costs are delegate at each train of output and are tracking, record and examined to jell the value of inventory, and the cost of products and services sold. These costs are take a hoped in the purchase of materials from removed suppliers and the combined cost of in sign materials and the production process. meliorate CostThe most basic accounting cost term is referred to as fixed costs (FC).

FC are comparatively constant operational costs that remain on the end sheet or income statement from month to month disregardless of the production chroma or sales level (McConnell & Brue, 2004, chap 22. p.32). In the short run, FC are international of a business manager?s span of control. FC reflect the fiscal investment do during a business?s long commitment, the business has fixed assets considered un-resalable. Examples of fixed costs admit redress premiums, interest on debts, loan payments, a dower of derogation on... If you want to get a full essay, order it on our website: Ordercustompaper.com

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