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.