LO 1-1

Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs.

LO 1-2

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

LO 1-3

Understand cost classifications used to prepare financial statements: product costs and period costs.

LO 1-4

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

LO 1-5

Prepare a schedule of cost of goods manufactured.

LO 1-6

Understand cost classifications used to predict cost behavior: variable costs and fixed costs.

LO 1-7

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