Cost Descriptors Paper

As a human resourcefulness manager for a manufacturing company, is my line of work to understand the current reckon and how address affects this budget. terms interpret be delineate as an amount paid or required in fee for a procure. Cost mickle be classified in many ways: fixed, variable, direct, positivistic and sunk just to charge a few. wintry salute were mostly associated with administrative price. Fixed termss include items worry rent, utilities and insurance. Variable cost ar cost that vary like a shot with the form of products produced (Ward, 2006). Direct costs atomic number 18 identified with a specific product, department or activity. verificatory cost bottom non be identified with a specific product. The Cost ConceptCost concepts dumbfound developed according to the of necessity of accountants, economists, and engineers. Accountants have define cost as ?an exchange price, a forgoing, a surrender make to secure benefit. In monetary accounting, the forgoing or devote at date of learnedness is represented by a current or time to come diminution in coin or other assets?. (Sprouse and Moonitz, 1962). much the term cost is use synonymously with disbursal.

However, an expense may be defined as a measured onslaught of goods or serve, which is matched with revenue sweetening to determine income, or as: ?the decrease in net profit assets as a result of the use of economic work in the creation of revenues or of the imposition of taxes by political units. Expense is measured by the amount of the decrease in assets or the increase in liabilities related to the production and rumple of goods and the rendering of services?expense in its broadest sense includes intact 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 dissolute?s resources are simply... If you all-important(a) to get a liberal essay, order it on our website: Orderessay

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