Chapter 6 Study Plan

Study Plan: Variable Costing & Performance Reporting

Knowledge Targets

I can define the following terms as they relate to our unit:

Absorption costing

Variable costing

Fixed Costs Variable Costs

Segment Segment Margin Segmented Income Statement

Contribution Margin Income Statement

Traceable Cost Common cost Cost per unit Net Income
 

Reasoning Targets

  • I can identify costs as fixed or variable.
  • I can explain the difference between variable costing and absorption costing.
  • I can analyze and explain the difference in net income under variable costing and absorption costing.
  • I can determine the profitability of each segment in a segmented income statement.


Skill Targets

  • I can calculate cost per unit under variable costing.
  • I can calculate cost per unit under absorption costing.
  • I can prepare income statements using variable costing and absorption costing.
  • I can prepare a segmented income statement.


Click Variable Costing for a printable copy.

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