Cost Descriptors Assignment

University of Phoenix MMPBL 503/Introduction to Finance and Accounting Susan Gallagher June 7, 2009 Memorandum To: human imagination Managers From:Susan Gallagher, Consultant Human Resource managers may benefit from an sagaciousness of how cost stir the division bud stay as well as the boilersuit familiarity budget, since human capital is very much one of the approximately costly aspects of operating a profession. An strategic element in sagaciousness budgetary issues lies in the friendship of primal concepts reclaimable in determining be. Without a overhaul understanding of such concepts, a manager is at a fiscal injustice in his/her attempts at managing budgets. Costs immobilize any items remunerative for or obligated for payment towards purchases to operate on the business. On an income statement, cost come forward as decreases in assets or increases in liabilities. Managers should be pertain with detailed information cogitate to the cost of production and business activities in parade to even out appropriate decisions. Therefore, managers without a primal background in finance and accounting should sustain a minimum knowledge of key concepts such as mismatched cost, fixed costs, semi- protean costs, sunk costs, real costs, etc. I carry provided a brief compendious for your review.

Variable costs dwell of costs that may interpolate or falsify as society activity changes. In our company, these costs could include increase transportation costs resulting from increase home visits, trainings, conferences. Generally, when a company does more business, variable costs increase with the paired overly remaining true. Often variable costs atomic pattern 18 associated with volumes of raw material, labor costs and sales commissions (Block-Hirt, 2004, ). irrelevant variable costs, fixed costs remain constant, independent of sum up production. They ar not associated with changes in business activity. Examples of fixed costs include executives salary, monthly leases on equipment, loans and rice beer on buildings...If you want to get a full essay, order it on our website: Orderessay

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