This chapter is about inventory costing and capacity analysis. Specifically, it discusses alternative inventory costing methods (variable,...

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This chapter is about inventory costing and capacity analysis.Specifically, it discusses alternative inventory costing methods(variable, absorption and throughput), alternative income statementformat presentations (variable and absorption costing operatingincome) and alternative denominator-level capacity concepts(theoretical, practical and normal capacities). Let's pretend thatyou are introducing these concepts to a group of cost accountingstudents. In three sentences or less, explain why this chapter isimportant and how to balance management incentives with full andfair inventory disclosure when trying to manage inventory costs. (3sentence maximum.)
Managers use various methods in determining how costs behave.What are the quantitative methods of cost function estimation andwhy is determining cost behaviors useful to managers in makingdecisions? (2 sentence maximum)

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For a group of cost accounting students these concepts about inventory costing and capacity analysis are important for the following reasons 1 Once they qualify as cost accountants they will be responsible in various capacities to ensure that inventory costing is as per the standards and See Answer

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This chapter is about inventory costing and capacity analysis.Specifically, it discusses alternative inventory costing methods(variable, absorption and throughput), alternative income statementformat presentations (variable and absorption costing operatingincome) and alternative denominator-level capacity concepts(theoretical, practical and normal capacities). Let's pretend thatyou are introducing these concepts to a group of cost accountingstudents. In three sentences or less, explain why this chapter isimportant and how to balance management incentives with full andfair inventory disclosure when trying to manage inventory costs. (3sentence maximum.)Managers use various methods in determining how costs behave.What are the quantitative methods of cost function estimation andwhy is determining cost behaviors useful to managers in makingdecisions? (2 sentence maximum)