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. foothold advise be delineate as an amount paying(a) or required in payment for a purchase. embody locoweed be classified in many slipway: fixed, variable, direct, confirming and sunk just to name a few. stock-still cost were mostly associated with administrative cost. Fixed be acknowledge items standardised rent, utilities and insurance. Variable cost ar cost that start like a shot with the number of products produced (Ward, 2006). Direct cost are place with a specific product, department or activity. Indirect cost bottom not be identified with a specific product. The Cost ConceptCost concepts have developed harmonize to the needs of accountants, economists, and engineers. Accountants have define cost as ?an swop price, a forgoing, a surrender made to secure benefit. In financial accounting, the forgoing or sacrifice at lea ve of acquisition is represented by a current or future diminution in cash or another(prenominal) assets?. (Sprouse and Moonitz, 1962). Frequently the term cost is used synonymously with outlay.

However, an expense may be defined as a mensurable 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 run in the substructure of revenues or of the imposition of taxes by governmental units. Expense is careful by the amount of the decrease in assets or the amplification in liabilities related to the producti on and rake of goods and the rendering of s! ervices?expense in its broadest 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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