ACCT 1020 - Decision Making with Accounting

• Be able to identify and categorize variable and fixed costs in order to prepare a contribution margin income statement.
• Determine the full cost of a product/service using multiple cost drivers (Activity Based Costing).
• Evaluate simple investment decisions for investment centers using capital budgeting techniques, including net present value, internal rate of return, and payback period.
• Identify relevant costs and know how to use them to make managerial decisions, including special order decisions, outsourcing decisions, segment elimination decisions, and replacing equipment decisions.
• Perform breakeven analysis for single and multiple product firms.
• Prepare a master budget for a merchandising company, including the sales budget, purchases budget, selling & administrative budget, pro-forma income statement, cash budget, and pro-forma balance sheet.
• Separate fixed and variable components of a mixed costs using the high-low method.
• Use of financial statement information for analysis and strategic decision making.