Questions/Topics to start class•Whose mistakes are best to find?•Is it better to ask questions you know the answer to or that you do not know the answer to?•“There is no upside to that”.
Questions/Topics to start class•Article on Parker Hannifin•Current articles from Students•Review homework•Chapter 2 notes•Group Project assignment
Advanced Cost ManagementChapter 2Nature of Costs
Key Points: Chapter 2•Profit Maximizing at MR = MC•One of most useful tools in all of business is CVP▫TC = FC + VC*Q▫Profit = TR - TC▫Written setting profit = 0 to find breakeven point▫0 = FC +(P-VC)*Q, where P- VC = contribution margin• Opportunity costs are only relevant between alternatives.
Problems to review in class•P 2-3•P 2-6•P2-9•P 2-13•P2-20
Advanced Cost ManagementChapter 3Opportunity Cost of Capital and Capital Budgeting