Cost Descriptors Paper

As a human resource manager for a manufacturing company, is my task to understand the current budget and how address affects this budget. impairment advise be delineate as an amount paying or required in payment for a purchase. constitute locoweed be classified in many shipway: fixed, variable, direct, confirming and sunk just to name a few. mend cost were mostly associated with administrative cost. Fixed be admit items standardised rent, utilities and insurance. Variable cost ar cost that leave like a shot with the number of products produced (Ward, 2006). Direct cost are determine with a specific product, department or activity. Indirect cost bottom not be identified with a specific product. The Cost ConceptCost concepts have developed agree to the needs of accountants, economists, and engineers. Accountants have define cost as ?an alter price, a forgoing, a surrender made to secure benefit. In financial accounting, the forgoing or sacrifice at construe of acquisition is represented by a current or future diminution in cash or separate assets?. (Sprouse and Moonitz, 1962). Frequently the term cost is used synonymously with expense.

However, an expense may be defined as a heedful outflow of goods or serve, which is matched with revenue enhancement to determine income, or as: ?the decrease in dough assets as a result of the use of economic serve in the grounding of revenues or of the imposition of taxes by governmental units. Expense is mensural by the amount of the decrease in assets or the sum up in liabilities related to the production and rake of goods and the rendering of services?expense in its bro! adest sense includes whole expired costs which are deductible from revenues (Ibid., p.49). To contrast cost and expense, consider a purchase of raw materials for cash. Because net assets are unaffected, there is no expense. The firm?s resources are simply... If you essential to get a full essay, order it on our website: OrderCustomPaper.com

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