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......Introduction Objectives of Modern Income Tax Statutes The primary objective of the federal income tax systems is to raise revenue for government operations. However, as years have gone by the government has widened its use of these laws to encompass economic and social policy objectives. One way the statues are used for economic objectives is “as a fiscal policy tool to stimulate private investment, reduce unemployment, and mitigate the effects of inflation on the economy.” (Pope, p. 1-14) When tax credits are given to businesses that operate in rural or economically suffering areas, or in such cases where natural disasters or tragedies like September 11 happen, then businesses are allowed to provide economic recovery of such areas. This is one way the federal government and the tax law help to stimulate the economy in these areas. Other ways tax law helps in an economic manner is through individual tax deductions and exemptions. These items help provide relief for the individual tax payer that might suffer increased taxes due to the inflation that occurs every year. Th......