Sweep Accounts

Variable costs are those that are directly proportionate with the quantity of production and or directly associated with the service.

Variable costs are the costs that change depending on how many products you sell or how many services you provide.

The difference between expenses and expenditure. Expense is the outflow from a profit oriented organization while expenditure is the outflow from non-profit organization.

Headcount or number of pc's per cost center.

Cost sheet is a statement of cost for a product for given period of time.

A sweep account is actually a combination of two or more accounts at a bank or financial institution. It is useful in managing a steady cash flow between a cash account where scheduled payments are made from and an investment account where the cash is able to accrue a higher return.

Cost sheet consists of the direct and indirect expenses incurred in producing a given product and classifying the expenses incurred according to office, administration, selling and distribution overheads.

Expense is the outflow from a profit oriented organization.

★ A cash account is set up first and a lump sum of money is deposited into that account.

★ A financial adviser and the client will discuss and determine an average balance that should be kept in this account. Depending on the institution's service, this amount may be pre-determined.

★ Most of the extra cash above the average balance will be invested into a money market, CD, or some other form of investment that can be easily liquidated.

★ When the balance in the cash account falls below the pre-determined average balance, some of the investment is liquidated and the proceeds get deposited into the cash account, thus maintaining the average balance.

Repo Sweeps are for companies that are concerned about the safety of the bank usually mandate of the companies/institutions charter and not due to the opinions of the employees or financial staff. In this arrangement, swept funds on deposit with the bank are secured by some of the bond holdings of the bank. If the bank were to fail, the depositor would just be given the bond holdings and then could sell the bonds to get their money back (unless something happens to the bond prices in the interim).

Eurodollar sweeps are legal transfers of funds to the bank's offshore entities, although essentially they are just an accounting technique to allow the banks to have full lending of the funds without the reserve requirements normally required and without having to pay for FDIC insurance (as the sweep is uninsured). Essentially, the funds are just unsecured obligations of the bank, and therefore are paid the highest interest rate offered by the bank to overnight deposit borrowings.

Capability Maturity Model Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes.

Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20.

The Econ-model applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.

Expenditure is the outflow from non-profit organization.

CMMI can be used to guide process improvement across a project, a division, or an entire organization. CMMI helps integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes.