Explanation of Business Segment, Strategic Business Unit, or SBU

The units calculation for the break even point in an activity is used to determine exactly how many units of output must be produced and sold for the company to breack even monetarily.

The break even point for an organization can be calculated as either the total number of units sold or the total value of units sold.

This video explains the high-low method of breaking down mixed costs in managerial accounting. The high-low method is a commonly used approach to cost accounting in managerial accounting.

Risk and uncertainty are present throughout the Cost Volume Profit analysis. Namely, there are numerous assumptions about revenue and expenses. The methods used to estimate these variables seeks to minimize the level of risk present.

The Cost Volume Profit Analysis yields the number of units needed for an operation to break even. At break even, the operating income is zero.

Various assumptions must be made or are relevant when conducting a Cost Volume Profit Analysis. This video explains the nature of those assumptions.

Costs change or react to changes in other organizational levels or variables. Most notably, the Cost Volume Profit analysis analyzes changes in cost related to profitability and volume.

Contribution margin is a key assumption when conducting a Cost Volume Profit Analysis. This video explains the relevance of this assumption.

A sensitivity analysis as part of the cost volume profit analysis shows how profits vary with changes in cost or volume.

This video explains the different methods for allocating costs among support departments within an organization - the direct method, the reciprocal method, and the sequential method. These methods help organizations effectively...

Economic Conditions Affect Consumer Decisions

This video explains what are direct costs and indirect costs and how are they recorded. Further, it identiifies how this information is important for management decision making.

This video explains what are fixed costs and how fixed costs are recorded as part of the managerial accounting process.

In marketing strategy, first-mover advantage is the competitive advantage gained by the initial significant occupant of a market segment.

Cost allocation is the process of assigning costs within the organization to cost objects. The purpose is to determine efficiency, effectiveness, and profitability.

What are Authorized Shares of a company? Authorized shares are the maximum number of shares a company is allowed to issue to investors as laid out in its articles of incorporation. Outstanding shares are the actual shares issued or sold...

The activity-based costing process is best understood through a demonstration. This video provides an example or sample demonstration of activity-based costing.

Activity based management employs activity based costing methods. Environmental costs can be a cost object or activity driver.

Activity based budgeting is an approach to budgeting where every activity or cost driver is identified. This information is useful in reducing inefficiencies when setting a budget.

Activity based costing seeking to allocate costs to specific activities. There are various levels of activity in the organization - unit-based, batch based, product based, and facility based

Professor AJ Kooti provides a detailed example of the Weighted Average method of accounting for inventory sales.

Assigning costs to a cost object entails identifying the object, pool costs, determining an allocation rate, and identifying the cost drivers present within the object.

The mole is an important concept to understand in chemistry and being able to convert the mole to different units like grams, molecules, ions, atoms or liters is equally important. In this video, we cover the different conversion factors...