• Discuss direct costs and indirect costs.
• Explain how job order costing is used to predict cost behaviors related to direct materials, direct labor, variable, and fixed costs.
• Sugar Delicacies is a new donut shop opening in downtown Charlotte, NC. The owner, Elaine Richardson, would like to keep her prices low but wants to make enough money to cover the cost of ingredients to make her products and offer her products to her customers. Explain to Elaine how a break-even analysis would help her achieve this goal.