Review Sheet - Cost & Management Accounting 2 - ACCT2170 - Term Test #1 February, 2006 Learning Outcomes Reference Unit 1: Chapter 7 - Variable vs. Absorption Costing Theory : reasons for difference between variable and absorption costing; difference in income and which method gives the higher income when production is > sales, < sales, and = to sales; effect of denominator level choice on stable fixed MO rates, and size of volume variance; impact of JIT mfg. on the two income methods. Calculation of per unit manufacturing cost under variable and under absorption costing; Calculation of volume variance when appropriate See next item Preparation of income statements under variable and absorption costing from one set of data including situations where last year’s costs are different from this year’s costs; preparation of related reconciliation E7-1, 7-2, 7-10, Quiz, Supplementary questions 9-22, 9-23, 9-27 Unit 2 : Pricing (see supplemental handout and appendix to Chp 13) Review the Quiz on this unit
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linear cost function, Absorption cost mark-up, related target SP