Docstoc

7 Optical Telescope

Document Sample
7  Optical Telescope Powered By Docstoc
					Measuring Costs


Measuring profits or net income is the most important thing accountants do. The second most important task
is measuring costs. Costs are extremely important to running a business and managing them effectively can
make a substantial difference in a company's bottom line.


Any business that sells products needs to know its product costs and depending on what is being
manufactured and/or sold, it can get complicated. Every step in the production process has to be tracked
carefully from start to finish. Many manufacturing costs cannot be directly matched with particular products;
these are called indirect costs. To calculate the full cost of each product manufactured, accountants devise
methods for allocating indirect production costs to specific products. Generally accepted accounting
principles (GAAP) provide few guidelines for measuring product cost.


Accountants need to determine many other costs, in addition to product costs, such as the costs of the
departments and other organizational units of the business; the cost of the retirement plan for the company's
employees; the cost of marketing and advertising; the cost of restructuring the business or the cost of a
major recall of products sold by the company, should that ever become necessary.


Cost accounting serves two broad purposes: measuring profit and furnishing relevant information to
managers. What makes it confusing is that there's no one set method for measuring and reporting costs,
although accuracy is paramount. Cost accounting can fall anywhere on a continuum between conservative or
expansive. The phrase actual cost depends entirely on the particular methods used to measure cost. These
can often be as subjective and nebulous as some systems for judging sports. Again accuracy is extremely
important. The total cost of goods or products sold is the first and usually largest expense deducted from
sales revenue in measuring profit.



Thank You for Visiting - More Resources Available at This Link

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:2
posted:1/14/2012
language:
pages:1
Description: $1000 Provable Income Cash Advances Windows 98 alarm burglar free wireless bull dog pit terrier genealogy of morals sports car styling tips 01 Membership Sites Today 01 5 Important Rules in Website Design 01 Affiliate Marketing in a Nutshell 01 Avoiding Impulse Spending 01 Establishing Online Dating Relationships 01 What is Niche Marketing 01 Why Publish an eZine 01 02 Why Start a Membership Site 02 5 Ways to Keep Visitors Coming Back 02 6 Ideas for Viral Marketing 02 Affiliate Marketer Defined 02 Growing Online Dating Relationships 02 Making Money from Selling Advertising Space 02 Niche Marketing vs. Internet Marketing Niche 02 Rebates Reward or Rip Off 02 03 The Different Types of Membership Sites 03 Are Affiliates in Demand 03 B2B Marketers Do It, Too 03 Generating Revenue With Good Planning 03 Mailing List for Affiliate Marketers 03 More Popular Online Dating Activities 03 Spend Wisely to Save Money 03 What Niche Marketing Really Is 03 04 Deciding on Your Membership Model 04 E Books and Affiliate Programs 04 Good Design Practices 04 Online Dating Activities 04 The Age Old Question Do You Need a Website 04 The Budget 04 What Niche Marketing is Not 04 Which One is More Important Product or Mailing List 04 05 Suggested Membership Site Themes 05 Folksonomies a New Viral Marketing Tool 05 How To Have Websites Built For You The Cheap Way 05 How to Research and Find Your Niche Online 05 Identifying an Existing Hot Demand 05 Popular Online Dating Activities For Men 05 Publishing Your eZine the Pros 05 Why Should I Make a Budget 05 06 A Man's Secrets to Successful Online Dating 06 About Online Trading 06 Does Your Passion & Hobby Really Matter 06 Four Good Reasons to Use Viral E Books 06 Protecting Your Commissions 06 Publishing Your eZine The Cons 06 Starting a Free Membership Site 06 The Importance of a Sitemap 06 07 Ask the Right Questions First 07 Ch