About This Chapter
Cost Behavior Analysis - Chapter Summary
Accounting professionals monitor financial information by running reports and analyses. In this chapter, you will go over everything you need to know to understand cost behavior analysis. Our instructors designed these lessons for learners of all levels. Less experienced individuals will benefit from going through the lessons sequentially one by one. People who have more accounting experience can skip around through the lessons and use this chapter as a way to brush up on major topics and concepts. By completing the chapter, you should be ready to do the following:
- Summarize the steps for determining variable and fixed costs
- Generalize techniques for reviewing mixed costs
- Show how to build contribution margin income statements
- Determine techniques for cost-volume-profit analysis
- Establish methods for choosing a cost structure for CVP
- Outline break-even and target-profit analysis
1. Identifying Fixed Costs & Variable Costs for Producers
Ever wonder why the price of brand-name drugs is so much more than generics? Or why all tablet prices seem to congregate at about the same level? This lesson explains those and other mysteries through the lenses of variable and fixed costs.
2. How to Analyze Mixed Costs
In this lesson, we'll explore costs. We'll learn about fixed and variable costs, and we'll revolve our lesson around mixed costs. Finally, we'll look at some examples and learn how mixed costs are calculated.
3. Creating Contribution Margin Income Statements
When a manager is trying to figure out quickly if variable costs are getting out of control, a contribution margin income statement can be very valuable. In this lesson, we learn about such statements.
4. Cost-Volume-Profit Analysis: Definition & Examples
In this lesson, we'll explore cost-volume profit analysis, which companies use to help them figure out how many products to make, and at how much to sell them for in order to make their desired profit. We'll also discuss contribution margins.
5. How to Select a Cost Structure for CVP
Companies incur costs to make a profit. Management must choose a cost combination that will maximize profit. In this lesson, you'll learn how to select a cost structure.
6. Target-Profit & Break-Even Analysis
A business needs to know how many units to produce in order to cover its costs and make a profit. In this lesson, you'll learn about break-even analysis and calculating target profit.
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Other chapters within the Accounting 303: Cost Accounting course
- Cost Classifications in Accounting
- Costing Methods & Techniques
- Formulas for Cost Accounting
- Standard Costs in Accounting
- Job Order Cost System in Accounting
- Process Cost System in Accounting
- Activity-Based Costing Overview
- Product & Service Costing
- Budgetary Process
- Cost-Volume-Profit Analysis Overview
- Cost Estimation
- Service Department & Joint Cost Allocation
- Cost Accounting for Decision Making
- Ethics in Cost Accounting
- Modern Trends in Accounting
- Required Assignments for Accounting 303
- Studying for Accounting 303