• Define basic cost behaviors, including fixed, variable, semi variable, and step costs.
• Explain how costs are presented in financial statements.
• Cost allocation.
• Define basic cost behaviors, including fixed, variable, semi variable, and stepcosts.
• Identify the components of a product’s costs.
• Understand the distinction between financial and contribution margin incomestatement.
• Use cost‐volume‐profit (CVP) analysis to analyzedecisions.
• Understand the effect of cost structure ondecisions.
• Incorporate taxes, multiple products, andalternative cost structures into the CVP analysis
• Differential Analysis
• Legal Issues Relating to Costs and Sales Prices
• Use of Differential Analysis for ProductionDecisions.
• The Theory of Constraints
• Understand the reasons for estimating fixed and variable costs.
• Estimate costs using engineering estimates
• Estimate costs using account analysis
• Estimate costs using statistical analysis
• Interpret the results of regression output
• Identify potential problems with regression data
• Evaluate the advantages and disadvantages of alternative cost
• Estimation methods.
• Cost Flow Model