BUS105: Cost-Plus Pricing and Target Costing | Saylor Academy

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In this section, you will explore other pricing systems and why companies may use them. Cost-plus pricing starts with an estimate of the costs incurred to build a product, and a certain profit percentage is added to establish the price. Companies often use this method when it is difficult to determine a reasonable market price. Target costing integrates the product design, desired price, desired profit, and desired cost into one process beginning at the product development stage.

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Course Introduction

Course Syllabus

Unit 1: Managerial Accounting

1.1: Financial Accounting vs. Managerial Accounting

Characteristics of Managerial Accounting

1.2: Key Finance and Management Accounting Personnel

Planning and Control Functions Performed by Managers

Key Finance and Accounting Personnel

1.3: Ethical Issues Facing the Accounting Industry

Ethical Issues Facing the Accounting Industry

1.4: Computerized Accounting Systems

Computerized Accounting Systems

1.5: Product Costs

Cost Terminology

How Product Costs Flow through Accounts

1.6: Income Statements for Manufacturing Companies

Income Statements for Manufacturing Companies

1.7: Basic Math Review

Math for Accounting

Unit 2: Job Costing

2.1: What is a Job Cost System?

Differentiating Job Costing from Process Costing

Job Order Costing

2.2: Direct Material, Direct Labor, Factory Overhead

How a Job Costing System Works

Assigning Manufacturing Overhead Costs to Jobs

Job Costing in Service Organizations

Summary of Cost Flows at Custom Furniture Company

2.3: Allocating Overhead Costs

Why Allocate Overhead Costs?

Approaches to Allocating Overhead Costs

Using Activity-Based Costing to Allocate Overhead Costs

2.4: Practical Uses of ABC Costing

Using Activity-Based Management to Improve Operations

Using Activity-Based Costing (ABC) and Activity-Based Management (ABM) in Service Organizations

Activity-Based Costing

Unit 3: Process Costing

3.1: What is a Process Costing System?

Comparison of Job Costing with Process Costing

3.2: Direct Materials, Direct Labor, Factory Overhead

Product Cost Flows in a Process Costing System

3.3: Assigning Costs in Four Steps

Determining Equivalent Units

The Weighted Average Method

3.4: Cost of Production Report

Preparing a Production Cost Report

Process Costing

Unit 4: Cost Behavior Patterns

4.1: Cost Behavior Patterns

Cost Behavior Patterns

Cost Behavior

4.2: Cost Estimation Methods

Cost Estimation Methods

4.3: Contribution Margin Income Statement

The Contribution Margin Income Statement

The Relevant Range and Nonlinear Costs

High-Low Method

Scattergraph

Least Squares Regression

Appendix: Performing Regression Analysis with Excel

Unit 5: Cost-Volume-Profit Analysis

5.1: Cost-Volume-Profit Analysis

Cost-Volume-Profit Analysis for Single-Product Companies

Cost-Volume-Profit Analysis for Multiple-Product and Service Companies

Cost-Volume-Profit Analysis

5.2: Using Cost-Volume-Profit Models for Analysis

Using Cost-Volume-Profit Models for Sensitivity Analysis

Impact of Cost Structure on Cost-Volume-Profit Analysis

5.3: Cost-Volume-Profit Considerations

Using a Contribution Margin When Faced with Resource Constraints

Income Taxes and Cost-Volume-Profit Analysis

Using Variable Costing to Make Decisions

Cost-Volume-Profit Analysis, Continued

Unit 6: Using Differential Analysis to Make Decisions

6.1: Formatting differential analysis

Using Differential Analysis to Make Decisions

6.2: Make-or-Buy Decisions

Make-or-Buy Decisions

Relevant Costs for Decision Making: Make or Buy

6.3: Product Line Decisions