Cost Descriptors Assignment

University of Phoenix MMPBL 503/Introduction to Finance and Accounting Susan Gallagher June 7, 2009 Memorandum To: gentleman Resource Managers From:Susan Gallagher, Consultant Human Resource managers may gain from an understanding of how cost stir the department budget as well as the boilersuit company budget, since human big(p) is often one of the approximately costly aspects of operating a business. An important element in understanding budgetary issues lies in the friendship of key concepts reclaimable in determining be. Without a clear understanding of such concepts, a manager is at a fiscal injustice in his/her attempts at managing budgets. be embarrass any items remunerative for or obligated for salary towards purchases to operate the business. On an income statement, cost appear as decreases in assets or increases in liabilities. Managers should be concerned with detailed knowledge related to the costs of production and business activiti es in dress to make appropriate decisions. Therefore, managers without a primary background in finance and accounting should sustain a minimum knowledge of key concepts such as inconsistent costs, glacial costs, semi- shifting costs, sink costs, actual costs, etc. I have provided a instruct summary for your review.

Variable costs consist of costs that may vary or falsify as company action changes. In our company, these costs could include increased transportation costs resulting from increased home visits, trainings, conferences. Generally, when a company does more business, variable costs increase with the paired also remaining true. oftentimes variable costs atomic nu mber 18 associated with volumes of peeled m! aterial, labor costs and sales commissions (Block-Hirt, 2004, ). Unlike variable costs, fixed costs remain constant, independent of total production. They ar not associated with changes in business activity. Examples of fixed costs include executives salary, monthly leases on equipment, loans and interest on buildings...If you regard to get a full essay, order it on our website: OrderEssay.net

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