LO1

Prepare a segmented income statement using the contribution format, and explain the difference between traceable fixed costs and common fixed costs.

LO2

Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

LO3

Compute residual income and understand its strengths and weaknesses.

LO4

Understand how to construct and use a balanced scorecard.

LO5

(Appendix 11A) Determine the range, if any, within which a negotiated transfer price should fall.

LO6

(Appendix 11B) Charge operating departments for services provided by service departments.