Ch. 5 Cost Components and Cost-Volume-Profit

It is impossible to cover every accounting managerial topic in a compressed accounting course.  In this chapter, we will cover random items that you might see as a manager of a business.  Make sure you understand these concepts as you will see them again in the financial and budget project.

Topics covered:

• Cost flows shows a picture of how products are manufactured and why the Cost of Goods Sold schedule could have an error.
• Manufacturing Overhead is the main cost that companies do not understand.  This cost is the main reason products do not have an accurate sale price.
• Contribution Margin and Break-Even Point are the success to your business.  They are also the most common numbers discussed at an event with friends.