Cost Analysis - Managerial and Cost Accounting

This book is the ninth of fifteen books which introduces the basic principles of accounting. In this book you will learn about cost analysis. Cost volume profit analysis and business scalability are discussed in the book. Key topics center around cost behavior, variable cost, fixed cost, mixed costs, cost behavior analysis, break-even and target income calculations, contribution margin, sensitivity analysis, and analysis with multiple products.

Cost-Volume-Profit and Business Scalability

1. Cost Behavior
1.1 The Nature of Costs
1.2 Variable Costs
1.3 Fixed Costs
1.4 Business Implications of the Fixed Cost Structure
1.5 Economies of Sale
1.6 Dialing in Your Business Model

2. Cost Behavior Analysis
2.1 Mixed Costs
2.2 High-Low Method
2.3 Method of Least Squares
2.4 Recap

3. Break-Even and Target Income
3.1 Contribution Margin
3.2 Contribution Margin: Aggregated, per Unit, or Ratio?
3.3 Graphic Presentation
3.4 Break-Even Calculations
3.5 Target Income Calculations
3.6 Critical Thinking About CVP

4. Sensitivity Analysis
4.1 Changing Fixed Costs
4.2 Changing Variable Costs
4.3 Blended Cost Shifts
4.4 Per Unit Revenue Shifts
4.5 Margin Beware
4.6 Margin Mathematics

5. CVP for Multiple Products
5.1 Multiple Products, Selling Costs, and Margin Management

6. Assumptions of CVP

Larry M. Walther, Ph.D., CPA, CMA, is the Ernst & Young Professor and Head of the School of Accountancy at Utah State University. Dr. Walther has authored numerous accounting textbooks and articles, and has served as director and/or consultant to a number to a number of public and nonpublic companies. Dr. Walther obtained his Ph.D. in accounting from Oklahoma State University and has public accounting experience with Ernst & Young. He currently serves as the accounting accreditation committee of the AACSB and is past president for the federation of schools of accountancy.

Dr. Chris Skousen obtained his Ph.D. at Oklahoma State University. He earned MBA and BA degrees from Utah State University. Dr. Skousen gained public accounting auditing experience with KPMG in their Portland, Oregon office, and as an intern in their in Düsseldorf, Germany office, and at Squire & Co. Dr. Skousen has taught accounting at Utah State University, The University of Texas at Arlington, Oklahoma State University, and Brigham Young University-Idaho. He has published in Accounting Horizons, Behavior Research in Accounting, Accounting and the Public Interest, and other journals.