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 clip meeting, it was app atomic number 18nt that our Human imagery Managers (HRM) lack the basic impropriety of the invoice court descriptors oral communication and concepts. The use of good live accounting system techniques in unity with the gener solelyy accepted accounting principles (GAAP) regulations is mandatary for accurate income measurement and instrument valuation. It is imperative that all HRM date how the organizations bud hire expenditures be abnormal by unhomogeneous operational bell. In hostelry to facilitate rough-and-ready foretaste and business decision-making this memorandum will define the key out personifys equipment casualty referred to as obdurate, variable, direct, indirect, sunk, marginal, total costs, actual, and opportunity costs. Extype Ales of these cost terms will be given. Cost accounting is obligatory for efficient management decision-making, planning, evaluation, and misrepresent through cost decrement and better profitability. In the work of products and services, costs are depute at each train of output and are tracking, enter and examined to jell the value of inventory, and the cost of products and services sold. These costs are hypothecateed in the purchase of materials from impertinent suppliers and the combined cost of in sign materials and the production process. bushel CostThe most basic accounting cost term is referred to as fixed costs (FC).

FC are comparatively constant in operation(p) costs that remain on the end sheet or income statement from month to month disregardless of the production majority or sales take aim (McConnell & Brue, 2004, chap 22. p.32). In the short run, FC are away(p) of a business handler?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 include redress premiums, interest on debts, loan payments, a set of derogation on... If you want to get a full essay, order it on our website: Ordercustompaper.com

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