ITEM 15 ATTACHMENT 1 - Laserfiche WebLink

An expense that can be traced directly to a specific cost center or cost object such as a department, process or product. Direct Labor Cost of personnel that can be identified in the product or service, such as the salary of the person who provides the direct service. Discretionary Costs Costs changed easily by management decisions such as advertising, repairs and maintenance and research and development. Also called managed costs. Division An organizational component of a department, which may be further subdivided into programs. Division Overhead The cost of the division's indirect labor and material/supplies divided by the division's direct salary and wages cost. The result is expressed as a percentage to be applied to direct salary and wages. Effective Interest Methods Premiums, discounts, bond issuance costs amortized over life of debt issue. Encumbrance The commitment of appropriated funds to purchase goods or services. An encumbrance is not an expenditure. An encumbrance reserves funds to be expended. Equity The difference between fund assets and fund liabilities. Estimate To approximate. Estimated Economic (Useful) Life The period over which a property is expected to be usable, by one or more users, with normal repairs and maintenance, for the purpose(s) for which it is intended. Expenditure/Expense The outflow of funds paid or to be paid for an asset obtained or goods and services obtained regardless of when the expenditure is actually paid. The term expenditure applies to Governmental Funds. The term expense is used for Enterprise and Internal Service Funds. For complete fund descriptions, refer to the Guide to Funds/Fund Descriptions. Fee Cost of a service. Fiscal Year The 12 -month period for recording financial transactions specified by the City as beginning July 1st and ending June 30th. Fixed Assets Assets of long-term character such as land, buildings, machinery, equipment or furniture. Fixed Asset Management 201