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hca270WK8appendixD - Term Definition and example...

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Axia College Material Appendix D Costs and Cost Control Part I—Costs: Briefly define the following terms, and provide examples where appropriate. Term Definition and example Direct costs Cost for a direct result of providing a service or a certain product. Example- materials or labor utilized on a project. Indirect costs Costs of a result of serveral services, projects, and product. Example- Rent and utilities used for a project. Fixed costs Costs which do not charge no matter of the amount of production. Example- How much a indivisual is charged by a company or bank. Variable costs Cost that alters when the volume alters thus the output alters the variable will to. Example- Cost of shipping items sold. Step-fixed costs Cost which is consistent till the upper limit of outputs is reached for the range. Example- A smaller event will only require one security guard, but if there will be more people more may need to be hired. Part II—Centers: Briefly define the following terms, and provide an example of each.
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Unformatted text preview: Term Definition and example Responsibility centers Cost or revenue is under the control of a manager. Example- Revenue center or investment center. Revenue centers Clearly recognizable branch, division, or unit of a company that produces revenue through sale of goods or services. Example-Housings department and food and drinks department of a bed and breakfast are its revenue centers. Cost centers A cost center is a portion of a business that does not produce direct profit and increases the fee of running a company. Example- Research and development departments, marketing departments, help HCA 270 desks and customer service/contact centers. Shadow cost centers Provides in depth reports for cost center departments, division, and extensions. Example- Rent and utilities decrease of plant and equipment, or big budget objects for whichever business. HCA 270...
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hca270WK8appendixD - Term Definition and example...

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