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Managerial Accounting and Cost Concepts


After studying Chapter 2, you should be able to:

LO1

Identify the major differences and similarities between financial and managerial accounting.

LO2

Identify and give examples of each of the three basic manufacturing cost categories.

LO3

Distinguish between product costs and period costs and give examples of each.

LO4

Prepare an income statement including calculation of the cost of goods sold.

LO5

Prepare a schedule of cost of goods manufactured.

LO6

Understand the differences between variable costs and fixed costs.

LO7

Understand the differences between direct and indirect costs.

LO8

Understand cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.

LO9

(Appendix 2A) Properly account for labor costs associated with idle time, overtime, and fringe benefits.

LO10

(Appendix 2B) Identify the four types of quality costs and explain how they interact.

LO11

(Appendix 2B) Prepare and interpret a quality cost report.











Garrison MA 13e OLCOnline Learning Center

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