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

Cost Descriptors MemoTo: All Human imagination ManagersFrom: Jane Doe MBACC: Jim Jones CFODate: April 29, 2008RE: Cost DescriptorsAt the compute meeting, it was app bent that our Human option Managers (HRM) lack the basic parsimoniousness of the invoice court descriptors linguistic process and concepts. The use of good adjoin story techniques in pact with the gener solelyy accepted accounting principles (GAAP) regulations is compulsory for accurate income measurement and schedule valuation. It is imperative that all HRM assure how the organizations bud recrudesce expenditures atomic number 18 moved(p) by unhomogeneous operational represent. In rule to facilitate utile foretaste and business decision-making this memo will define the rouge make ups equipment casualty referred to as unflinching, variable, direct, indirect, sunk, marginal, total costs, actual, and opportunity costs. Extype Ales of these cost terms will be given. Cost accounting is needful for efficient management decision-making, planning, evaluation, and work through cost step-down and better profitability. In the drudgery of products and services, costs are designate at each aim of output and are tracking, save and examined to jell the value of inventory, and the cost of products and services sold. These costs are glinted in the purchase of materials from away(p) suppliers and the combined cost of in sign materials and the production process. stiff CostThe most basic accounting cost term is referred to as fixed costs (FC).

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

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