1. Discuss the flow of costs for manufacturers using the job-order and the process costing methods. Further, discuss the differences between the two costing methods. Define the term contribution margin and describe how this ratio is advantageous in business planning. Define the term operating leverage and describe high and low operating leverage in terms of which one has a positive position, and which one has a negative position. Define the term sales mix and describe how shifts in sales mix affect the contribution margin and the break-even point. Discuss the IMA and describe each of the standards. Compare these standards to Biblical principles.