10-23-09-FINAL - Phase 2 Costing. Claudia Pelaez Colorado...

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Unformatted text preview: Phase 2 Costing. Claudia Pelaez Colorado Technical University Online ACC350-0904A-02: Managerial Accounting Practices. Instructor: Jacob Gordon October 23, 2009 Costs Costs are used in many different perspectives. Ill be analyzing Claires different types of costs. Claires has variable costs; those are the ones that used to change based on sales volume. For example: materials, labor, commissions, bonus, shipping & handling. Variable costs generally augment when the economy is good and hence the sales are doing well and get lower during the less successful times. Fixed or also called committed costs are cost that doesnt change at all. Those costs always will be the same no matter if sales of the company are high or are going down; company must pay for those expenses during good or bad economic times. Claire's fixed expenses are: interest, rent, insurance, depreciation, salary, etc. The company is supposed to have enough funds to cover their fixed costs. Whether or not, they are achieving its goal company is supposed to have enough funds to cover their fixed costs....
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10-23-09-FINAL - Phase 2 Costing. Claudia Pelaez Colorado...

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