| Chapter Objectives (See related pages)
Describe the relationship between cost and value. |
| | | Understand how costs affect the three profitability measures. |
| | | Describe why costs are important in operations. |
| | | State the dangers of using average costs. |
| | | Explain why it important to be able to assign operations costs. |
| | | Explain the concepts of tracing and allocating costs. |
| | | Define the components of product costs. |
| | | Describe how cost reduction relates to productivity improvement. |
| | | Explain the concepts of standards and variances. |
| | | Compute usage, price, and total variances. |
| | | Understand the difference between total cost and cost per unit. |
| | | Conduct a breakeven analysis. |
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