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Cost descriptor memo. Memo To: HR Managers From: CC: Date: Re: Cost
Descriptors It has been brought to my attention that since we ...
Cost Descriptor. Cost Descriptors Being able to plan for a business
successfully depends heavily on the financial manager who has ...
... Conclusion I hope my explanation of these cost descriptor terms has provided you
with a clearer understanding of our current budget discussions. ...
... the program control logic takes commands from the input message descriptor data ... a
cyclic memory storage the functions of the central procesterms of cost per bit ...
... This descriptor aptly applies to female suicide bombings. Suicide bombing is used
because it is first of all a simple and low cost operation that requires no ...
Submitted by johndoe2008 on July 5, 2008
Category: English
Words: 1007 | Pages: 5
Views: 120
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Cost Descriptors
Being able to plan for a business successfully depends heavily on the financial manager who has a comprehensive knowledge of many inter-related financial factors. Various financial factors can have direct and indirect affects on the operating costs of the business. Some of these factors could be influenced by the financial condition of the company, and others could be the on-going changes brought about by the macro-economic prospects. Before making any future investment plan, it is very important that a financial manager thoroughly understands the existing budgeting condition of the company. Then the magnitude of investment can be estimated based on the existing situation of economic atmosphere. For example, in a recessionary period, consumers are less likely to spend. Companies with large capital investment during this period are likely to have excessive inventory build-ups and not able to achieve a desirable return of investment. Unemployment during the recessionary period will tend to be high, and companies may be expected to exercise layoffs in order to cut operating and to remain in business. The purpose of this paper is to expand on the topics regarding costs. The type of costs to be discussed is fixed cost, variable costs, direct costs, indirect costs, sunk costs, period costs, and product cost.
Fixed costs are the operating expenses that do not fluctuate in proportion to the business activities. This type of operating expense is independent of the goods a company produces or sells. According to Block (2004), some time the fixed costs still incurred even when the business is not producing any goods at all. For instance, the human resource department may decide to cut-back on hiring employees. On the other hand, it chooses to allocate budget for the purchase of more sophisticated equipments. For the long run, a reduction in labor cost and a continuous increase in production volume would be a cost saving factor,...
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