Explaining the Individual Project
Part 1: Summarize what a contribution format income statement depicts, as compared to the traditional format.
Please discuss
Explaining the Individual Project
Part 2: Using the following company data, show how the two income statement formats would look side by side.
Traditional- versus contribution-format statements are as follows:
Explaining the Individual Project
Explaining the Individual Project
Part 3: Explain why the contribution approach is more useful to project profits. As an example, show your calculations when using a projected sales increase of 20%.
Please discuss and make the following calculation
Explaining the Individual Project
Part 4: Using the following data, show how expected profits would be different if there was a sales increase of 10% and she used variable COGS of 50% vs. 60%. As an offset, this implies an increase in fixed COGS of $1,000,000.
WEEK 1 LECTURE
Cost Accounting and Cost Concepts
Learning Objectives
1-Identify and give examples of each of the three basic manufacturing cost categories.
2-Distinguish between product costs and period costs and give examples of each.
3-Understand cost behavior patterns including variable costs, fixed costs, and mixed costs.
4-Analyze a mixed cost using a scattergraph plot and the high-low method.
5- Prepare income statements for a merchandising company using the traditional and contribution formats.
Learning Objective
6-Understand the differences between direct and indirect costs.
7-Understand cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.