Navistar International and Boyne Resorts The Navistar International video demonstrates the use of standard costs and variance analysis in a manufacturer of trucks and diesels engines with forty major locations, mostly in the United States. The company uses standard costs and variances analysis to increase control over production, cost decisions, and price decisions that enables management to find correct answers and take appropriate corrective actions to minimize its costs and maximize its operating efficiency. The Boyne Resorts video demonstrates how a ski resort uses cost volume profit (CVP) analysis in its decision making and to monitor its performance. Variations in snow affect how the company manages its operations and finances during the winter season. CVP allows the company to determine its breakeven point and guides their critical decisions in managing the business. The video exemplifies how a company can use the CVP tool to successfully monitor its profits and manage a business to insure smooth running of a sports operation while attaining a high standard of customer satisfaction. The company can control its significant variable costs while taking care of its customers. Please respond to the following Discussion Board topics. Take time to review the responses of your classmates and provide your feedback.

 Topic 1 What are the three primary uses of a standard cost system?

 What is the difference between ideal standards and currently attainable standards? 

Define these two terms and briefly explain how Navistar uses them in making decisions about its standards. 

Topic 2 What information provided by a variable costing income statement is used in computing the break-even point? Is this information on an absorption costing income statement? 

Explain how Boyne Resorts uses CVP analysis to manage its business.

Provide examples of fixed and variable costs. 

Discuss the reasons Boyne Resorts chose to begin offering major non-ski activities, such as water park rides, spa services, and expanded retail stores.