1. Define cost behavior and explain how managers use this concept in the management cycle.
2. Identify specific types of variable and fixed cost behavior, and discuss how operating capacity and relevant range relate to cost behavior.
3. Define mixed cost, and use the high-low method to separate the variable and fixed components of a mixed cost.
4. Define cost-volume-profit analysis and discuss how managers use this analysis.
5. Compute a breakeven point in units of output and in sales dollars, and prepare a breakeven graph.
6. Define contribution margin and use the concept to determine a company’s breakeven point for a single product and for multiple products.
7. Apply cost-volume-profit analysis to estimated levels of future sales and to changes in costs and selling prices.
8. Apply cost-volume-profit analysis to a service business.