1. For a start, a revision of the "cost object" concept (video); a slide on its basic ideas.
2. The following notes will be covered:
- Direct vs indirect cost (2 pages); also note the different types of cost assignment.; the concept with regard to product cost (slide).
- Prime costs and conversion costs (1 page); a diagram for clarification.
- Specific cost terms - explanation (3 pages)
- Cost classification (2 pages)
- Cost classification II (2 pages)
- Part 2 note on cost driver (3 pages); some ABC examples.
- Cost behavior calculation examples (2 pages); a closer look at the concept of fixed cost (video), considering the factor of relevant range.
- Breakeven analysis (6 pages): the formulas; [a related YouTube video]; breakeven analysis (b) margin of safety (2 pages) [a related YouTube video]; also note breakeven analysis diagram and two examples: example 1; example 2. {Note that breakeven analysis is covered in a slightly broader topic called CVP analysis}.
- Part 2 exercises on cost terms [Questions and answers]
Some more complicated concepts to consider:
(1) What is avoidable fixed cost (video)?
(2) What are committed and discretionary fixed costs (video)?
(3) Estimate mixed costs with the high-low method (video)?
3. Videos to review in class
4. Due to some doc processing errors, a few of the docs will only be distributed to the class on Jan. 21, 2018. The docs can also be found in Facebook subject group.
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