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Cost Descriptors Free Essay, Term Paper and Book Report

With both the availability and fluidity of information, opportunity often can present itself and be gone at the same moment. Packaged as information, opportunity and informed or calculated risks can either build or break a company. It is therefore paramount that when making decisions, one be as informed as possible. Such is the case with undertaking business projects, such is the case in legal matters, and such is the case in the arena of finance and accounting. In becoming informed in the area of finance and accounting, a basic understanding of the terms used common to the field is required. This paper will explain cost descriptors terms like fixed, variable, direct, indirect, sunk, etc while give examples of each in order to facilitate an understanding of a budget discussion. To begin the discussion, a definition of fixed and variable costs will be given along with an example. These costs are attributed to a firm’s operating leverage, which shows the degree to which fixed assets and associated fixed costs are made use of in the business (Block & Hirt, 2005, 115). Accordi......

Word Count: 619
Page Count: 2.4  (250 words a page / double spaced)

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