Introduction HR is struggling with current budget discussions. In an attempt to help HR understand the terminology within the discussions, this memo has been compiled. Business deals with costs such as fixed, variable, direct, indirect, sunk, and actual, come with possibility that each of the cost variables can be applied in some way to a business as a diverse business dependent on outside products (Business Link, 2007). Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements such as cost of activities. Indirect cost .Indirect costs stand for operating cost of doing trade that are not eagerly known with a demanding financial support, agreement, plan or action, but are essential for the all-purpose process of the association and the performance of behaviors it performs (Feinschreiber, Robert, 2008). Direct costs......

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