Standard costs are used to estimate what will be the Cost of Goods Sold or COGS.

This video explains the concept of standard costing and its relevance to managerial control. This information is then used to establish a standard system for applying costs and analyzing the management of a particular project or activity.

This video provides a clear explanation of short-run decision making and emphasizes its importance in the decision making process, particularly in terms of the immediate impact and time frame involved.

Variance in any of major variables employed in the cost volume analysis will cause a variation in the expected output or profits from operations. This video identifies the major variables that may vary in a CVPA analysis.

This video provides an overview of variable overhead analysis, its importance in decision making and budgeting, and the metrics used to measure and analyze these costs.

Activity-based costing identifies numerous categories or types of activity to which costs are allocated. This video explains the the types of activities employed in activity-based costing.

This video what is the Contribution Format Income Statement in managerial accounting. It also discusses how managers use the contribution format income statement in comparison to a traditional income statement required under GAAP.

The term zero-cost strategy refers to a trading or business decision that does not entail any expense to execute. A zero-cost strategy costs a business or individual nothing while improving operations, making processes more efficient, or...

This video explains the characteristics of job order costing and how it is used in environments where products and services are distinct and unique. It also discusses the process of creating a cost pool for a particular job and how to...

Lower of Cost or Market - Inventory example

What should be included in the Financial Projections portion of the business plan? The financial section of your business plan should include a sales forecast, expenses budget, cash flow statement, balance sheet, and a profit and loss...

Budgeting or setting a budget is the process of allocating resources to future or intended activities. There many types of budget and manners of involvement in the budgeting process.

Break even analysis is a key assumption when conducting a Cost Volume Profit Analysis. This video explains the relevance of this assumption.

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.

Determine Cost of Inventory - Financial Accounting

Relevant costs or relevant costing is closely related to decision making. A relevant cost is a cost that will directly change based upon a singular decision.

This video explains the importance of identifying, categorizing, and recording costs in managerial accounting. The determination of costs is a major factor in management decision making.

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.

This video explores the concept of cost behavior and its relevance to managerial judgment. The video introduces two common methods for assessing cost changes: the high-low method and regression analysis. The video emphasizes that...

This video explains the concept of cost volume profit (CVP) analysis and the relationships between various metrics used in this analysis. The video delves into key metrics such as contribution margin, net income, variable expense ratio,...

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

Cost classification is a major component of absorption and variable costing. Absorption costing allocates fixed overhead to Cost of Goods Sold while Variable costing allocates fixed overhead to whisl Selling General and Administrative...

Cost behavior generally concerns how costs are affected by changes in output. The relevant range is the range of production over which cost behavior is consistent.