Sunday, February 20, 2011

What are companies’ costs?

There are numerous expenses for companies; Most important of these expenses are the wages of employees in the company are an essential part of company expenses and advertising expenses also include advertising on the Internet, magazines and newspapers, The expenses of communication, to be able to communicate with consumers and with its stuff too. Some companies send people from within the company to the other states or countries to sign the contracts and established the work for the company and this conceder from company expenses, Many companies are working to secure their employees’ with health insurance this take a enormous amount of costs.

Here is an explanation of the costs of the company and how these costs are divided:

1-Fixed costs are costs that remain constant or vary at different amount of sales costs such as rent of the company is no different regardless of the sales

2-Variable costs are costs that vary with the amount of sales. Example when buying a laptop from a specific company at a price $ 500 maybe can find the same laptop with another price (cheaper or more expensive) and this depends on many factors, one factor is the amount payment of Rent Company in a particular.

To calculate the overall costs of the company collect the fixed costs with variable costs.

Apple is working on producing a product at a particular price and selling the product at a higher price, in order to be able to pay expenses of the company and to turn a profit. Some of the costs of Apple Company are to update existing technology to take some risk to install this technology.

http://www.thetimes100.co.uk/theory/theory--fixed-variable-costs-break-even--122.php

On this link APPLE INC Balance Sheet;

http://www.dailyfinance.com/financials/apple-inc/aapl/nas/balance-sheet

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