TAILIEUCHUNG - Lecture Accounting (6th edition): Chapter 18 - Kimmel, Weygandt, Kieso

Chapter 18 - Cost-volume-profit. In this chapter students will be able to: Explain variable, fixed, and mixed costs and the relevant range; apply the high-low method to determine the components of mixed costs; prepare a CVP income statement to determine contribution margin. | Cost-Volume-Profit Kimmel ● Weygandt ● Kieso Accounting, Sixth Edition 18 CHAPTER OUTLINE Explain variable, fixed, and mixed costs and the relevant range. 1 LEARNING OBJECTIVES Apply the high-low method to determine the components of mixed costs. 2 Prepare a CVP income statement to determine contribution margin. 3 Compute the break-even point using three approaches. 4 Determine the sales required to earn target net income and determine margin of safety. 5 Cost Behavior Analysis is the study of how specific costs respond to changes in the level of business activity. Some costs change; others remain the same. Helps management plan operations and decide between alternative courses of action. Applies to all types of businesses and entities. Starting point is measuring key business activities. LO 1 LEARNING OBJECTIVE Explain variable, fixed, and mixed costs and the relevant range. 1 Cost Behavior Analysis is the study of how specific costs respond to changes in the level of business activity. Activity levels may be expressed in terms of: Sales dollars (in a retail company) Miles driven (in a trucking company) Room occupancy (in a hotel) Dance classes taught (by a dance studio) Many companies use more than one measurement base. Cost Behavior Analysis LO 1 Cost Behavior Analysis is the study of how specific costs respond to changes in the level of business activity. Changes in the level or volume of activity should be correlated with changes in costs. Activity level selected is called activity or volume index. Activity index: Identifies the activity that causes changes in the behavior of costs. Allows costs to be classified as variable, fixed, or mixed. Cost Behavior Analysis LO 1 Costs that vary in total directly and proportionately with changes in the activity level. Example: If the activity level increases 10 percent, total variable costs increase 10 percent. Example: If the activity level decreases by 25 percent, total variable costs decrease by 25 percent. Variable .

• Kế toán - Kiểm toán
• Lecture Accounting
• Financial statements
• Business organization
• Accounting information
• Cost volume profit
• Cost behavior analysis
• Financial accounting
• Lecture Financial accounting
• Management accounting
• Accounting standards
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Managerial accounting
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
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• Advanced financial accounting
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• Accounting estimate
• Retrospective application
• Changes in accounting estimates
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• Lecture Management accounting
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• Nature of management accounting
• Component of accounting system
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• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
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• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions