Managerial and cost accounting topics of cost volume profit analysis (CVP).

We will review managerial accounting concepts and the difference between managerial accounting and cost accounting.

The course will start out introducing our primary CVP tool, a contribution margin income statement. The contribution margin income statement will give us an idea of where we are going as we then zoom into more detail going forward, focusing on the nuances of each step in the process.

What will you learn in this course?

• Concept of mixed costs, why they are a problem, and different methods for dealing with them including a high low method and scatter diagram method.
• Break-even point in units and revenue, one of the foundational concepts of cost volume profit analysis (CVP), and one many other concepts are built from.
• Forecasting using cost volume profit analysis (CVP). Projections into the future are one of the significant benefits that CVP provides.
• Cover techniques to apply CVP analysis when there are multiple inventory products.
• Concept of operating leverage, how it is calculated, and why it is useful.
• Assumptions that cost volume profit analysis makes and limitations to CVP analysis.

We will work on a comprehensive problem using Excel and step by step instructional videos.

The course will have many Excel worksheets to help us review topics. Excel worksheets generally include three tabs. One tab will have the completed problem so we can see the result. Another tab will have a preformatted worksheet where we can fill in the problem. The last tab will have a blank worksheet where we can build our own tables if we choose.