ACTG 2300 Lecture 2: Day 2 Notes

• School: University of Denver
• Department: Accounting
• Course: ACTG 2300
• Professor: Patelli Lorenzo

Document Summary

Facility management: employees cost money, human resources manager, supplier boxing, packaging, shipping, etc, san jose vs. boise costs are different, operations/facility manager. Pricing: how much it costs to make product, how much selling it for, done by product/sales/marketing manager. Borrowing/financing decisions: interest rates, loans, treasury manager. Is a measurement, in monetary terms, of the consumption of resources used for some purpose. Monetary terms: always expressed in a $ number, if asked to answer cost, must be a $ Amount of resources: scarce, will cost more. Purpose: cost depends on the purpose we have when we calculate, cost is calculated differently depending on the purpose, hard to get the true cost of product. To determine the cost of a product. Internal: relationship between the volume and the cost, volume = quantity produced (units, not $) Making specific decisions: ex: drop product, buy new, resell, etc. Top line of an income statement is always sales revenues.