• Explain sunk cost, opportunity cost, and accounting cost, and provide three examples of each.
• Explain how each of these costs relates to developing managerial accounting information required for decision making.
• Summarize why a manager should understand these concepts, providing an example to support your rationale.
• Explain the differences between fixed and variable costs and provide three examples of each type of cost.
• Summarize the importance for managers to classify these costs correctly, including how the correct classification can inform decision making.