Cost functions and determining how costs behave-Welcome to Cost Accounting - Decision Making
Course Overview
Introduce yourself!
Lecture slides for this course
Cost functions and determining how costs behave-Identifying typical cost functions
Elementary cost functions
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Combinations of elementary cost functions
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Outlook: How to apply ‘sticky costs’ in advisory services
Cost function, cost drivers, and the time horizon
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Cost functions and determining how costs behave-Determining cost functions
Simplifying cost functions and the relevant range
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Analytical methods
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Statistical methods
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Practical example: Statistical cost determination in a hospital
Deriving and visualizing cost functions in Excel
Cost functions and determining how costs behave-Documenting cost forecasts
Documenting cost forecasts
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Cost-volume profit analysis-Introduction to cost-volume profit analysis
Objectives of cost-volume profit analysis
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Cost-volume profit analysis-Cost-volume profit analyses (CVPA)
CVPA for a single product
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Considering target profits in CVPA
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Cost-volume profit analyses for multiple products
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Cost-volume profit analyses with a constant sales mix
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Assumptions of cost-volume profit analysis
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Cost-volume profit analysis-Considering uncertainty in CVPA
Sensitivity analysis
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Margin of safety percentage
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Cost-volume profit analysis-CVPA and cost-structure flexibility
Insourcing versus outsourcing
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Operating leverage
Cost and revenue information for operative decisions-The decision making process for operative decisions
The decision making process
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Planning objects, horizon, objectives and constraints
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Quantitative and qualitative information
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Characteristics of decisions under uncertainty
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Cost and revenue information for operative decisions-Relevant costs of operative decisions
Requirements for information from accounting
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Sunk costs, opportunity costs and operative decisions
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Deep dive: Opportunity costs in medical treatments
The effects of using full-cost information
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Absorption costing and make-or-buy decisions
More on outsourcing and offshoring
Cost and revenue information for operative decisions-Product mix decisions
Determining the optimal product mix
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Cost and revenue information for operative decisions-Pricing decisions
Price setter vs. price taker
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Lower price limits for negotiations and tenders
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Long-term pricing decisions
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Cost and revenue information for operative decisions-Congratulations on completing one course of the Cost Accounting Specialization
What do I learn in the other courses of the Specialization?