We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Cost Descriptions Paper - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Cost Descriptions Paper"
Fixed Cost refers to those expenses which do not vary with increase or decrease in production level. Total amount of fixed cost remains constant with all levels of production. Fixed cost per unit varies according to the level of production for a given period of time…
Download full paper
Polish This Essay
Cost Descriptions Paper
Read TextPreview

Extract of essay "Cost Descriptions Paper"

Download file "Cost Descriptions Paper" to see previous pages... However, the variable cost per unit is fixed for a specific level of production or cost. It will vary in total amount proportionately with some measures of business activity, like costs associated with power, maintenance, etc.
Whereas Direct Cost are those cost which can be traced to a specific cost objective or costs which is easily traceable by per unit and allocated through cost centers.
Let us write or edit the essay on your topic "Cost Descriptions Paper" with a personal 20% discount.. Try it now
Like direct material, direct labor etc.
Manufacturing Cost is the name of aggregate resources of direct material, direct labor and FOH which is allocated in manufacturing the product. Manufacturing costs are also referred to as production costs. Manufacturing cost also describes how much cost is incurred on each unit produced. By estimating the manufacturing cost, the management is able to value the units produced in a year, cost of goods sold and inventory, which ultimately, is reported in the income statement and balance sheet of the company. Manufacturing costs include all cost from acquisition of material to conversion into finished goods. Packing material, fuel expense, lubricants, depreciation on factory equipments, wages, repair and maintenance, all contribute to the manufacturing cost.
Product Costs are those costs which are identifiable with the product either directly or indirectly. Product cost mainly consists of direct materials, direct labor, and factory overhead. ...
Moreover, if the product is sold it is recorded as Cost of Goods Sold in the books of accounts and then COGS is matched against the revenue (matching principle) generated by selling the product. In short, product costs are those costs which are treated as inventory that is ready for sale. They are treated as assets until the products are sold (Garrison, 2004).

All those cost which are not attributed to product cost are treated as Period Cost. Period cost is treated as expensed and directly reported to income statement in the period when they are incurred. Period cost are not debated over purchase or cost of goods manufactured. Period cost include all selling expenses, general and administration expenses, interest expense and income tax expense (Garrison, 2004). In short, Period costs are reported on the income statement separated from the cost of goods sold section. The period cost is deducted from gross profit. Period cost is not essentially the part of the manufacturing process so therefore period cost is not treated as a cost of inventory (Meigs et al, 1999).

An Opportunity Cost means to get or select the benefit of one alternative by rejecting the other opportunity. It is the cost associated with the best forgone alternative. The opportunity costs is not present in the books of accounts but it is relevant and appropriate with respect to managerial decision making. Like if a students decides to attend summer school rather than accepting a job of making $500 a week, than the true cost of attending school is more than just books, meals, housing etc and the opportunity cost is $500.

Sunk Costs are not relevant in decision making because these costs have been incurred and cannot be changed. Like in the oil exploration ...Download file "Cost Descriptions Paper" to see next pagesRead More
Cite this document "Cost Descriptions Paper"
  • APA
  • MLA
(“Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 words. Retrieved from https://studentshare.org/miscellaneous/1504327-cost-descriptions-paper
(Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 Words)
Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/miscellaneous/1504327-cost-descriptions-paper.
“Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/miscellaneous/1504327-cost-descriptions-paper.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Graphic Descriptions of Womanhood in The Epic of Gilgamesh
The ancient Mesopotamian poem of Gilgamesh has been revered, since its rediscovery in the nineteenth century, as a literary masterpiece. In Tablet I, Enkidu is said to have “a full head of hair like a woman” – a description which, as is clarified later, means that “Enkidu has no father or mother, [therefore] his shaggy hair no one cuts” (Tablet II).
4 Pages(1000 words)Essay
Communist Manifesto, Descriptions and Prescriptions
The concept is not totally of Marx and Engel’s own initiative but it is definitely one they have shaped and put into words better than anybody else. The Manifesto, as it should be, served as a directive written goals for which Communism must be patterned after.
4 Pages(1000 words)Essay
Descriptions of methods used to measure
Doctors also use a pupilometer in their work, a special small instrument. The patient looks into what looks like a pair of binoculars while the doctor or technician looks in the other end. The instrument is adjusted such that lines seen by the examiner inside the instrument line up with the Purkinje images (reflections on the patient's cornea).
4 Pages(1000 words)Essay
Police role descriptions in the media
costs; and crime preventer which highlights his capability of stopping crimes before their occurrence. This paper will look at how the aforementioned police roles are being drawn by the media by examining the law enforcement stories posted at www.policeone.com.
4 Pages(1000 words)Essay
Oppotunity cost
The phrase 'TINSTAAFL' believed to be originated from some shops in United States which offered free lunch to their customers who purchase a drink. In other words, these salon owners offered the free lunch and at the same time they accommodated the cost of it in the cost of the drink.
8 Pages(2000 words)Essay
Cost management
It is an accounting truism that profit is nothing but the difference between revenue and cost and when dull market conditions
18 Pages(4500 words)Essay
Cost and analysis paper
This paper seeks to re-assess the previous reports on quality of health care services and the different agencies involved in upholding such quality. It shall discuss the functions of such agencies and the implications of quality health care services to
4 Pages(1000 words)Essay
Opportunity cost
In respect to this the definition of the three terms becomes handy. Scarcity is the tendency of the goods and services to be limited in
2 Pages(500 words)Essay
Two Descriptions
I watched her walk gingerly on the damp slippery street, rain droplets on her face glistened in the street lamp light giving the impression that she was crying silently. She lifted her face to the sky and I
2 Pages(500 words)Essay
Two Descriptions paper
It was not difficult for me to determine that there was no supervision at this park and the dog owners did not really care about watching their dogs. After being repeatedly threatened by one dog I decided to walk away and find a safer spot. As I was
3 Pages(750 words)Essay
Let us find you another Essay on topic Cost Descriptions Paper for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us