AT&T LTE 12:43 AM mail-attachment.googleusercontent.com 1. Know calculation i. Constant gross margin method ii. Assigning cost to by-products. ii. Activity based cost assignment to products iiii. ABC unit cost calculations v. Fixed manufacturing costs that would be expensed under absorption or variable vi. Income under absorption and variable vii. Inventory values under absorption or vii EOQ costing costing variable costing 2. Know the 4 criteria for allocating costs. 3. Know how cost refinement is done 4. Know the situation where cost refinement should be considered 5. Concepts around the following terminology i. Peanut butter costing ii. Product cross-product subsidization iii. Cost refinement iiii. Cost hierarchies 6. The primary cause of over or under costed products. 7. Problems that arise from over or under costed products 8. Know how departmental costing differs from activity based costing 9. Know the four hierarchical categories 10. Study the relationship between activity cost pools and good cost drivers 11. Be able to assign cost to categories 12. Know rules of thumb regarding which products are over and under costed. 13. Know what customer profitability is and the tools that can be used 14. Know the hierarchy of customer profitability costs 15. Know how joint costs can be allocated with a basic understanding of each approach 16. Know how to allocate joint costs using constant gross margin method 17. Know how by-product costs can be assigned 18. Know how capacity costs can be assigned AT&T LTE 12:43 AM mail-attachment.googleusercontent.com 1. Know calculation i. Constant gross margin method ii. Assigning cost to by-products. ii. Activity based cost assignment to products iiii. ABC unit cost calculations v. Fixed manufacturing costs that would be expensed under absorption or variable vi. Income under absorption and variable vii. Inventory values under absorption or vii EOQ costing costing variable costing 2. Know the 4 criteria for allocating costs. 3. Know how cost refinement is done 4. Know the situation where cost refinement should be considered 5. Concepts around the following terminology i. Peanut butter costing ii. Product cross-product subsidization iii. Cost refinement iiii. Cost hierarchies 6. The primary cause of over or under costed products. 7. Problems that arise from over or under costed products 8. Know how departmental costing differs from activity based costing 9. Know the four hierarchical categories 10. Study the relationship between activity cost pools and good cost drivers 11. Be able to assign cost to categories 12. Know rules of thumb regarding which products are over and under costed. 13. Know what customer profitability is and the tools that can be used 14. Know the hierarchy of customer profitability costs 15. Know how joint costs can be allocated with a basic understanding of each approach 16. Know how to allocate joint costs using constant gross margin method 17. Know how by-product costs can be assigned 18. Know how capacity costs can be assigned