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Business LibreTexts

6.1: Chapter 6 Study Plan

  • Page ID
    10624
  • Study Plan: Variable Costing & Performance Reporting

    Knowledge Targets

    I can define the following terms as they relate to our unit:

    Absorption costing
    Variable costing
    Fixed Costs Variable Costs
    Segment Segment Margin Segmented Income Statement
    Contribution Margin Income Statement
    Traceable Cost Common cost Cost per unit Net Income

     

    Reasoning Targets

    • I can identify costs as fixed or variable.
    • I can explain the difference between variable costing and absorption costing.
    • I can analyze and explain the difference in net income under variable costing and absorption costing.
    • I can determine the profitability of each segment in a segmented income statement.

     

    Skill Targets

    • I can calculate cost per unit under variable costing.
    • I can calculate cost per unit under absorption costing.
    • I can prepare income statements using variable costing and absorption costing.
    • I can prepare a segmented income statement.

    Click Variable Costing for a printable copy.