Chapter 7:

• Understand the differences between Absorption Costing and Variable Costing and when each is utilized
• Be able to identify and calculate period costs for Variable Costing vs Absorption Costing
• Be able to identify and calculate product costs (WIP, FG, COGS) for Variable Costing and Absorption Costing
• Understand and be able to calculate NOI for Absorption Costing and Variable Costing
• Know which costing method follows GAAP
• Know examples of product vs period costs for Variable and Absorption Costing
• Know how Net Income differs between Variable and Absorption Costing given the relationships between sales units and units produced

Chapter 8:

• Be able to calculate budgeted cash collections if given credit sales and collection percentage patterns
• Know the difference between Cash sales and Credit sales
• Know the factors that drive the initial Sales Budget as part of the Master Budget
• Be able to calculate the budgeted units of production and know the formula utilized
• Be able to calculate the Expected cash borrowings to achieve a desired ending cash balance in the Cash Budget
• Know the order of line items in the Cash Budget
• Know the order that Master Budget schedules are prepared and its preparers
• Understand the purpose of the Master Budget and how each schedule is dependent and interrelated with all other schedules and the timeline for typical budgets
• Understand the benefits of Budgeting and requirements for public companies

Chapter 9:

• Be able to calculate the Spending and Revenue Variances in a Performance Evaluation Report
• Know what schedules to use in creating a Performance Evaluation

• Be able to calculate expected costs in a Planning (static) Budget
• Know the differences between a Planning and Flexible Budget and when each should be used and created
• Be able to identify a Revenue or Spending Variance as Favorable/Unfavorable
• Know the steps in the Variance Analysis Cycle
• Know the reasons for Favorable/Unfavorable Materials Price/Quantity variances
• Know why standards are set for certain inputs (DM)

This is a review sheet if you could help answer as many of these as possible that would be greatly appreciated