Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Cost Descriptions Paper - Essay Example

Comments (0) Cite this document
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 paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Cost Descriptions Paper
Read TextPreview

Extract of sample "Cost Descriptions Paper"

Download file 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. 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 to see next pagesRead More
Cite this document
  • 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
(Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 Words)
Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 Words.
“Cost Descriptions Paper Essay Example | Topics and Well Written Essays - 1750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Cost Descriptions Paper

Communist Manifesto, Descriptions and Prescriptions

...? The Communist Manifesto, no doubt Karl Marx’s masterpiece, has been the primary literature that instigated a massive movement that advocated for a new system of government. It is more than an alternative political system but an economic one as well that nations across the globe have adopted. 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. It serves as a framework on how to develop what is theory into reality. The paper divulges the current problems of society and then offers what must be done in order to achieve its common goal...
4 Pages(1000 words)Essay

Human Resource Job Descriptions

Job Title: Assistant Human Resource (HR) Director, HRD  The person would be reporting to the (Chief Operating Officer) COO for leading and organizing the human resource in order to streamline the directors and managers in the organization for supporting the HR functions in every department of the hotel. The individual will receive tough operational predisposition for aspects like recruitment, performance management, benefits, compensation, employee relationship, and benefits to management and training (Armstrong, 2003). Job Duties: An ideal candidate should have motivational skills, should enjoy leading teams actively and can be an integral part of the winning team. Other essential requirements have been ment...
10 Pages(2500 words)Coursework

Visions in Conflict (Descriptions)

...Visions may be moral, political, economic, religious, or social. In these or other realms, we sacrifice for our visions and sometimes, if need be, face ruin rather than betray them. Where visions conflict irreconcilably, whole societies may be torn apart. Conflicts of interests dominate the short run, but conflicts of visions dominate history. We will do almost anything for our visions, except think about them.” Thomas Sowell, A Conflict of Visions: Ideological Origins of Political Struggles, xii. Visions in Conflict Vol. 1 presents a collection of empirical studies intended to address topics of understanding, forgiveness, and creative conflict resolution with respect to national and international crises. Featuring the works... may be...
2 Pages(500 words)Essay

Cost and analysis paper

...Cost and Analysis Paper Introduction The failing quality of healthcare is still an important issue in the health care system today. Various reportsfrom various agencies, both in the government and private sector, reflect that the measures which have been set forth years before have not greatly improved the quality of healthcare services. 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 nursing practice. Discussion Analyze quality of reports The reports of the Institute of Medicine on the quality of our healthcare system are based...
4 Pages(1000 words)Essay

Two Descriptions

...Descriptive Essay A Woman From my kitchen window, one night I saw a beautiful woman jerk back her rain sleeked coat with such ferocious energy that people crossing the road turned around to stare at her. Rain drops drizzled off the brim of her black velvet hat. I love the rain but unfortunately tonight, the rain reminded me of a cold December night I had buried my father. 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 followed her gaze to the moon faintly peeking from in between the dark clouds. With tears of grief in my eyes, I looked helplessly at the pale moon. Imagining my...
2 Pages(500 words)Essay

Two Descriptions paper

I realize I was at a dog park, but generally dog owners are responsible for cleaning up their dog’s waste. After looking at my shoes I headed towards a park bench to clean them off. As I was wiping off my shoes I heard a sudden loud shriek. I looked up and saw that my dog was being attacked by two other larger dogs. Finally I ran over to the area and took my dog home.
As I walked into the dog park I was not sure what to expect. After entering the park my dog ran to the fence and began smelling her way around the park. As I was standing there watching her many other dogs ran up to me. All the dogs – large and small – were in the same park and it was an interesting sight. One small dog ran up to me and was trying to play. Other...
3 Pages(750 words)Essay

Page descriptions &script

...About Hi! Im Anne Bolton. I am a third year enrolled with York/Sheridan Program in Design. I see every problem as an opportunity and strive to create effective and playful communication through my work. Main: Hello! This is the portfolio of a graphic designer, Anne Bolton. Radiohead: A 8-pages brochure about an English rock band, Radiohead. Oblique Strategies: A deck of four cards that is designed based on Oblique Strategies by Brian Eno and Peter Schmidt Dancing in the Rain: An expressive typography that communicates the meaning of phrase through its form. Climate Change Flyer: A climate change campaign flyer designed for Exclaim Magazine using pathos and pun. Bus Wait Times In Oakville: An infographic on bus wait times... Hi! Im Anne ...
1 Pages(250 words)Essay

Coca-Cola Product Descriptions

The issues related to this segment include obesity and health concerns and product quality concerns, including concerns related to the ingredients of the beverages (Coca-Cola Annual Report 2013). Another segment is the global segment, as the company operates globally, and is planning to expand its operations in developing and emerging markets. The company might fail its global growth strategy because of adverse economic and political conditions, different cultural attributes, limited purchasing power or inability to acquire local bottling companies (Coca-Cola Annual Report 2013).
In the soft drink industry, the fierce rivalry between dominant producers Coca-Cola and Pepsi Co and the threat of substitution are strong, while the...
6 Pages(1500 words)Term Paper

Cost Volume Profit Analysis Paper

... Cost Volume profit analysis Product Custom t-shirts are among the most traded products in the fashion industry. Indifferent to the normal t-shirts, the product is made in such away that it can appeal and increase the attractiveness to the potential customers. The attractiveness is achieved by adding appealing pictures and writings on the shirts. The materials required for making the product include: fabrics (cotton polyester), natural dyes, threads and screen print designs. As a result, the target market for this product is essentially people loving modernity. This group consists of people with taste for fashion, such as the youth, and business people who would like to customize their t-shirts for given functions. This target market...
3 Pages(750 words)Case Study

Competency list with descriptions

... at odd hours. One needs to be ready to handle the diversified issues. Ability to work under pressure and adaptable with tight schedules The applicant needs to be well prepared to work with tight deadlines. Ability to communicate with translator and client to ensure the correction of the translation and information. The worker will need to reach out to the other participants in the process to make sure they deliver as required. They need to be competent in the field of pattern recognition as well as fluent communication. Brief Description of Competencies The skills listed above will ensure that the applicant chosen for the job can deliver as per the requirements of the job. That will need them to have a wide variety of skills, knowledge...
2 Pages(500 words)Essay

Sustainable Construction: Going Green, the Cost Factor

...Sustainable Construction: Going Green, the Cost Factor Rachna Jalan Sustainable Construction: Going Green, the Cost Factor Introduction: According to Edward Mazria, Founder of Architecture 2030, in the U.S., buildings are responsible for almost half (48%) of all greenhouse gas (GHG) release every year and worldwide the percentage is even larger (U.S. Green Building Council 2007).The steady spread of the going “green” awareness has made the people more interested in sustainable designs while pondering over the construction of their buildings. Of late, mare and more people are found to advocate for building practices that conserve energy, minimize waste, and use environmentally friendly materials that too at low to no cost. The gigantic rise...
7 Pages(1750 words)Term Paper

Observation Paper on Stress at a Local High School Football Game

...Observation Paper on STRESS at a Local High School Football Game Football is a high quality game which necessitates a lot of potentiality and management of various kinds of stress associated with the game. Stress can be defined as the organism’s total response to a particular environmental demand or pressure. Physical, and psychological( emotional and mental) pressures play vital roles in a high school football game as the players, the parents, other spectators, officials, coaches, and referees have to undergo a great amount of stress as the game is in progress. This large amount of stress can affect the normal behavior pattern of all the people involved in the game and people tend to be aggressive and pressure ridden, depending upon...
10 Pages(2500 words)Assignment

Job Prime Cost

The limitation with fixed costs is that these are uncontrollable as these are normally ‘policy costs’. Fixed cost help in marginal costing in the sense that these costs enable us to identify break-even point, that the contribution needs to cover to reach at ‘no profit no loss’ level.

Variable costs are those costs that change within the same ratio in which the output or production changes. For example, in our study the direct Material cost and direct labour costs are variable cost. We have first calculated the these costs on per cabinet basis and then found total direct material or direct labour cost by multiplying per cabinet cost with total production of400 cabinets. This cost is called ‘...
6 Pages(1500 words)Case Study

James Madison's 51st Federalist Paper

If this theory was seriously followed, it would suggest that the citizens must opt for the president, the legislators, as well as the judges. However, the framers identified certain realistic problems in making all the offices elective. Especially, the judicial branch would face problems because the typical person does not have knowledge about what qualifications judges ought to have. Judges must have great capability, but also not have any political pressures. While federal judges are selected for life, their philosophy will not be inclined via the president who appoints them or the senators whose permission the president will take.

All the arguments were generated due to his past life as he was in an aristocratic fami...
6 Pages(1500 words)Term Paper

Real Cost of Capital

Also, other academics criticize the models' failure to incorporate other determinants of risks such as firm size, book-to-market ratio, etc. then the plain correlation of the risk of the assets to the market. Despite these criticisms, many practitioners in the corporate world still use CAPM for capital budgeting. These issues are probed in this paper.
CAPM or the capital asset pricing model has been a tool in modern finance that has been extensively used for capital budgeting. The capital asset pricing model is useful in estimating the required return on an equity stock of a company (Perold 2004). Under the principle of finance that rational investors will require higher returns to compensate them when they undertake projects...
8 Pages(2000 words)Assignment

On-Campus Living Cost and Housing Problem at the University of Houston

...On-campus housing costs have been rising rapidly in our school. Rising costs lead to live elsewhere, which means we spend more time in our cars, which makes students’ lives more difficult. Every semester, it is a common thing to roam around campus parking lots, spending lots of time in our vehicles. Also, we often are sitting in heavy traffic knowing that class time is getting close. These seem like minor yet inconvenient, effects of housing rate we students are facing. I heard many problems from friends and other students about on-campus housing and recognized how severe the on-campus housing problem has become. Our demand for living on-campus is getting larger, but our on-campus living cost is growing too. According to University...
8 Pages(2000 words)Case Study

Body and Conclusion of the Paper about Biodisel

... in air pollution. b. Null Hypothesis In justifying the alternate hypothesis, this research paper contains a contradicting null hypothesis which claims that biodiesel cannot reduce air pollution. Undeniably, biodiesel produces approximately 70% less carbon dioxide compared to conventional fossil fuels. However, biodiesel generates approximately 2% more NO2 compared to fossil fuels (Lewis 89). NO2 is a harmful pollutant which poses serious health impact to humans. Unlike CO2 and its global warming effects which are future oriented, increase in NO2 cause immediate danger to persons in form of respiratory complications. In addition, NO2 is a precursor for depletion of ozone layer; hence responsible for the increase of carcinogenic radiations...
7 Pages(1750 words)Research Paper

Cost of Using Mobile Phone

... Cost of Using Mobile Phone Mobile phones are telephones capable of receiving or making telephone calls while moving around wide geographic regions. The calls are carried over radio links that connect to cellular networks provided by mobile phone operators and allow users to access public telephone networks. The geographical regions, refered to as cells, are linked by base stations. Exposure to fields of radiofrequency, or the electromagnetic waves radiated in the microwave range that mobile phones emit is over 1000 times more than the base stations emit. It follows, therefore, that the higher possibility of any adverse effects of using mobile phones is due to the handset. Owners use their phones held close to their heads, pregnant women...
8 Pages(2000 words)Essay

The Cost of Air Pollution

... The Cost of Air Pollution Air pollution can be described as the contamination of air. Any alteration of the atmospheric air, which is biological, physical or even chemical, can be said to be pollution. Pollution usually happens when harmful elements that include smoke, dust, and gases enter the atmosphere making it difficult for animals and plants to survive as the air becomes unclean. Air pollution can be said to be either visible or invisible. Sustainment of life on earth depends on a combination of gases that form the atmosphere. Any form of imbalance between these constituents can lead to harming the living things. Such harm can be said to be economical or even bodily although the two are connected in that deteriorating physical...
6 Pages(1500 words)Assignment

Paper Cups versus Foam Cups

The most common name for foam cups is Styrofoam, which is the brand name for foam cups but for this essay, the foam will be used. The path taken by this paper will be to emphasize why foam cups are beneficial to the environment compared to paper cups. The paper will labor to emphasize that the emissions to the environment by foam cups are less compared to those of paper cups. The paper will use the different stages the two types of cups go through in the analysis of the environmental impacts.
To begin with, paper cups results in the degradation of the environment from the trees that are cut down for the manufacture of paper cups from paper, which is not the case in the production of foam cups as trees are not cut down in the...
15 Pages(3750 words)Term Paper
sponsored ads
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.

Let us find you another Essay on topic Cost Descriptions Paper for FREE!

Contact Us