1. Distinguish between managerial and financial accounting.

2. Identify the cost of manufacturing a product.

3. how how manufacturing product costs affect financial statements.

4. Identify and describe fixed, variable, and mixed cost behavior.

5. Demonstrate the effects of operating leverage on profitability.

6. Prepare an income statement using the contribution margin approach.

7. Calculate the magnitude of operating leverage.

8. Determine the sales volume necessary to break even or to earn a desired profit.

9. Explain how a change in sales price, sales volume, variable cost, or fixed cost affects profitability.

10. Draw and interpret a cost-volume-profit graph.

11. Identify cost objects and distinguish between direct costs versus indirect costs.

12. Allocate indirect costs to cost objects.

13. Identify the most appropriate cost driver.

14. Explain how activity-based costing improves accuracy in determining the cost of products and services.

15. Identify cost centers and cost drivers in an activity-based costing system.

16. Use activity-based costing to calculate costs of products and services.

17. Identify the characteristics of relevant information.

18. Make appropriate special order decisions.

19. Make appropriate outsourcing decisions.

20. Describe the budgeting process and the benefits it provides.

21. Prepare a sales budget and related schedule of cash receipts.

22. Prepare an inventory purchases budget and related schedule of cash payments.

23. Describe flexible and static budgets.

24. Classify variances as being favorable or unfavorable.

25. Compute and interpret sales and variable cost volume variances.

26. Explain the primary features of decentralization.

27. Evaluate investment opportunities using return on investment.

28. Evaluate investment opportunities using residual income.

29. Explain the time value of money concept.

30. Determine and interpret the net present value of an investment opportunity.

31. Determine and interpret the internal rate of return of an investment opportunity.

32. Compare the accounting treatment of material and labor costs for a manufacturing versus a service company.

33. Allocate overhead cost between inventory and cost of goods sold.

34. Prepare a schedule of cost of goods manufactured and sold.

35. Distinguish between job-order and process costing systems.

36. Explain how events in a job-order costing system affect financial statements.

37. Explain how events in a process costing system affect financial statements.