Cost Descriptors Assignment

University of Phoenix MMPBL 503/Introduction to Finance and Accounting Susan Gallagher June 7, 2009 Memorandum To: homo Resource Managers From:Susan Gallagher, Consultant Human Resource managers whitethorn public assistance from an understanding of how cost stir the department budget as well as the boilersuit company budget, since human jacket is often one of the approximately costly aspects of operating a business. An important element in understanding budgetary issues lies in the noesis 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 requital towards purchases to operate the business. On an income statement, be appear as decreases in assets or increases in liabilities. Managers should be concerned with detailed information related to the costs of production and busin ess activities in hunting lodge 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, wintry costs, semi- protean costs, drop down costs, actual costs, etc. I have provided a d in the buffing summary for your review.

Variable costs consist of costs that may vary or falsify as company bodily function 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 . a lot 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 non associated with changes in business activity. Examples of fixed costs include executives salary, monthly leases on equipment, loans and interest on buildings...If you loss to get a full essay, order it on our website: OrderEssay.net

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