This website uses cookies to ensure you have the best experience. Learn more

Cost Descriptions Paper

891 words - 4 pages

All concerned:
Below are the terms used to describe costs and leverage. This should help to understand the terminology in the current budget discussion. Please use this information as a reference. If there are any questions, please do not hesitate to ask.
“Operating leverage reflects the extent to which fixed assets and associated fixed costs are utilized in the business. A firm's operational costs may be classified as fixed, variable, or semivariable” (Block & Hirt, 2005, p. 2). Fixed costs are “costs that remain relatively constant regardless of the volume of operations. Examples are rent, depreciation, property taxes, and executive salaries” (Block & Hirt, 2005, p. 652). ...view middle of the document...

Fixed and variable costs are used in this analysis to determine how much the organization needs to sell in order to be equal to the costs that were put into the product, hence the term break even. The analysis also helps to determine how much of a profit or loss the business will make.
The equation used to calculate the break even analysis is
BE = Fixed costs = Fixed costs = FC_ (5-1)
Contribution margin Price – Variable cost per unit P-VC

Direct costs are “costs that can be identified specifically with a particular sponsored project, or that can be directly assigned to such activity relatively easily with a high degree of accuracy” (U.S. Department of Education, 2007, ¶4). Some examples include supplies that are used for a specific project, the salaries of those people who will work on the project and expenses they incur. Direct costs are mostly variable costs, however “not all variable costs are direct costs, for example, variable manufacturing overhead costs are variable costs that are not a direct costs, but costs. Variable costs are sometimes called unit-level costs as they vary with the number of units produced” (Wikipedia, 2008, ¶1).
Indirect costs “represent the expenses of doing business that are not readily identified with a particular contract, project function or activity, but are necessary for the general operation of the organization and the conduct of activities it performs” (U.S. Department of Education, 2007, ¶1). Some examples include the costs of light, heat, personnel, administration, taxes, and security costs, simply fixed costs. The cost of operations and production need to be accounted for when doing the income...

Other Papers Like Cost Descriptions Paper

Job Analysis and the Three Components of Recruitment

2273 words - 10 pages The Three Components of Recruitment Jaclyn Pitts BUS ADM 440 4/11/14 Job Analysis, job descriptions, resumes, cover letters, and applications are all part of an important process in business—Recruitment. Hiring/recruitment is an essential key to every successful business. Without the recruitment process, small companies would not have developed into the large corporations they are today. But in order for this to happen there are other

Paper for Humanities

1221 words - 5 pages Week 8 Assignment 2 - Submit Here Students, please view the "Submit a Clickable Rubric Assignment" in the Student Center. Instructors, training on how to grade is within the Instructor Center. Assignment 2: Project Paper Due Week 8 and worth 200 points The Project Paper focuses on a suggested topic related to art, architecture, history, music, or literature. The project will reflect your views and interpretation of the topic. This

Management Accounting Chapter 1

3175 words - 13 pages . – $5.0 mill.) (400,000) (20) Cost of capital, using a 10-percent rate (10 percent X $5,200,000b) (520,000) (26) Economic loss from timber $ (320,000) $ (16) Paper Processing Total Per Tona Revenue, if paper were sold in the market $ 12,000,000 $ 600 Operating costs, excluding depreciation (8,700,000) (435) Depreciation, computed as the

Amber Alert

1684 words - 7 pages Dallas, Texas area contacted the media, giving them suggstions to make an active system. Currently, there is the newest version of the Amber Alert System which uses the internet as another outreach from the media which will alert the public when an abduction of a child occurs. This paper explores the history and creation of the Amber Alert System. Furthermore, an evaluation of how the system has and has not been effective is discussed. A review of

Business Initiatives

2477 words - 10 pages being used as a tool to help the employees but as a function to manipulate to possible perform a function. The outcome is to perform a salary study internal and external and to review job functions and correct job descriptions and streamline processes. Implement new training programs in-house with current staff, that is trained and capable of providing the training, and pay for all other training services from external services, approximately 20

Newspaper Advertising

1249 words - 5 pages ads from. Procedure/Discussion Inside the newspaper are pages of stories and pictures. Often the pictures go with stories, but sometimes the pictures are advertisements, or ads. Ads are space in the newspaper devoted to selling something. The ads scattered throughout the paper are called display ads. They usually have pictures or graphics with them, and can be anything up to a full page in size. Allow students time to browse through the

Farma Case

4943 words - 20 pages | | |Summary of Work: Create a work paper noting reasons for cost variances | | |Timecards don’t reflect actual | | |between estimates, actual costs for similar jobs. | | |time spent on each job


824 words - 4 pages hopes to continue to entice customers with the introduction of its new customer rewards card. However, the company must first develop an effective communications plan. This paper will discuss about all the factors that has been involved in developing an effective marketing plan, evaluate advertising and promotion programs, evaluate technology trends, and compare and contrast the marketing communications strategies for both our domestic and

Job Description

889 words - 4 pages Job Description Recruitment Paper 1) JOB DESCRIPTION Job Title: HR Generalist Job Statement: The HR Generalist is accountable for providing support to all employees and management through effective communication and administration across all functions of the workplace. Under the direction of the Director of Human Resources, the HR Generalist oversees recruitment, employee development, employee relations/labor relations, policy

Business Plan

4342 words - 18 pages cooked fish tofu and broccoli florets on the platter in a sauce pan put together the soy sauce oyster sauce sugar cornstarch and | |water whisk well then season with salt and pepper cook over low heat until bubbly and slightly thinned adjust seasoning if preferred | Sinuglaw EP = edible portion after trim AP = purchased Cost (out of the box) EP = edible portion cost |Ingredients |AP / UNIT


3462 words - 14 pages these tools, are prepared to exploit them to their fullest - specifically, that you are able to make use of spreadsheet sensitivity analysis tools. Spreadsheet Basics Electronic spreadsheets (as opposed to the paper kind!) have revolutionized business analysis. This should be no surprise, given that one of the developers of the original tool, Visicalc, was a Harvard Business School dropout who recognized that a computer-based tool to

Related Essays

Information Technology Essay

555 words - 3 pages 3500 Computer and IT courses at different levels of cost and reputation for you to apply to online. Subjects required – Maths and a science, but requirements vary by institution – see course profile pages for further details Tuition fees – range on average from US$8500 to US$23000+ per year depending on the subject, level and the institution English level – from IELTS 6 or TOEFL 550 (paper) 213 (computer) – depending on the subject, level and

Fgerpwa Dpoasd Darem Ncxhfyus Essay

4223 words - 17 pages intended to provide an overview of the standard and to emphasise the image- media specific descriptive elements. 1 This paper is part of a master’s thesis in Information Science at the University of Bergen, Norway titled: Improving Image Retrieval through Enhanced Image Description. Nina Jaunsen Page 1 01.09.04 An overview MPEG-7 offers a comprehensive set of audiovisual description tools including metadata elements and their

Business Management Essay

645 words - 3 pages Case  #1   Resistance to Change     Incident: As office manager of the Worthless Paper Products Corporation (WPP), Minnie Reems was responsible for the work of approximately forty employees, of whom 26 were classified as either data processors or clerks. Acting under instructions from Kenny Count, the company CEO, she agreed to allow F. Taylor Group, Ltd., (FTG),a team of outside consultants ,to enter his realm of responsibility and conduct

Srs Documents Essay

1014 words - 5 pages easy since it requires only an internet access and unskilled people to do this job easily. 4 Desired System Functionality This should include use case diagram and actor descriptions for more system functionalities. For use case diagrams given below : Use case Diagram: [pic] Use Cases: |Use Case1: Search book