- Define and illustrate a cost object
- Distinguish between direct costs and indirect costs
- Explain variable costs and fixed costs
- Interpret unit costs cautiously
- Distinguish among manufacturing companies, merchandising companies, and service-sector companies
- Describe the three categories of inventories commonly found in manufacturing companies
- Distinguish inventoriable costs from period costs
- Explain why product costs are computed in different ways for different purposes
- Describe a framework for cost accounting and cost management
