Study how to analyze cost behavior through product vs. period costs, variable or fixed costs, sunken or discretionary costs, actual or opportunity costs and direct or indirect costs.
Learn how to utilize the High Low Method to estimate past costs and project future costs both algebraically and graphically.
Be able to interpret and analyze cost-volume-profit relationships focusing on the effects of a change in volume.
Learn to derive the formula for break-even point and apply to specific situations both algebraically and graphically.
Be able to utilize the Operating Leverage technique to estimate the effects of a change in volume on profits for simple and complex situations.
Learn how to identify the Responsibility Centers within an organization, the role of managers within each responsibility center and the application of the Segmented Income Statement.
Learn how to identify, explain, and apply the elements of the Flow of Product Cost in a manufacturing company.
Be able to apply the principles of the Flow of Product Costing and Job Order Costing to manufacturing overhead.
Learn how to identify the three objectives of Activity Based Costing and how to apply them.