Cost Descriptors Assignment

University of Phoenix
MMPBL 503/Introduction to Finance and Accounting
Susan Gallagher
June 7, 2009


Memorandum
To: valet Resource Managers
From:Susan Gallagher, Consultant
Human Resource managers may benefit from an understanding of how cost stir the department budget as well as the boilersuit company budget, since human capital is often one of the approximately costly aspects of operating a business. An important element in understanding budgetary issues lies in the knowledge 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.
Costs embarrass any items remunerative for or obligated for payment towards purchases to operate the business. On an income statement, costs appear as decreases in assets or increases in liabilities. Managers should be concerned with detailed information related to the costs of production and business activities in order 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, fixed costs, semi-variable costs, sunk costs, actual costs, etc. I have provided a brief summary for your review.




Variable costs consist of costs that may vary or falsify as company activity 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. Often variable costs atomic number 18 associated with volumes of raw material, 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 want to get a full essay, order it on our website: Ordercustompaper.com



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