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What is a Cost: Cost Versus Expense? Cost and expense are pretty similar terms when looking at traditional definitions but they’re a little diffe...

What is Differential Analysis? Differential analysis is a strategy used to make the best decision. Possible choices are compared to determine which...

What is Price Discrimination? Price discrimination means that different people are charged different amounts for the same good or service. In the m...

What is Price Fixing? Price fixing happens when competing companies try to set the price of their goods or services rather than allowing market for...

How does transfer pricing work? Transfer pricing allows companies to set prices when exchanging goods between their subsidiaries or companies that...

What is Variance Analysis? Variance analysis is the difference between what a company plans and what actually happens, in a monetary sense. So, if...

What is the difference between cost accounting and financial accounting? Cost accounting is the type of accounting that determines how to account f...

What are the four types of costs: fixed, variable, semi-variable, and step? Fixed costs are costs that don’t change no matter how much production...

How do you properly account for overhead? Overhead has to be accounted for by dividing the overhead amount by the recorded number of labor hours to...

How can unit fixed costs mislead the misled? Unit fixed costs can be misleading because the fixed cost per unit decreases as production increases;...

What is Predatory Pricing? Predatory pricing happens when companies set prices really low to drive their competitors out and attempt to create a mo...

What is Dumping? Dumping is a way to increase profits for companies that trade internationally. Dumping describes when a company exports some produ...

What is Peak Load Pricing? Peak load pricing happens when companies increase the price of goods during times of high demand. So, a simple example w...

How do product choice decisions work? Consumers, when determining how to spend their disposable income, make product choice decisions. Studies have...

What is a Learning Curve? A learning curve is a graph that shows that the more a person learns about something or experiences it, the better theyâ€...

What is Work in Process from a Cost Account Perspective? Work in Process is an accounting strategy that’s used to account for only the amount of...

How do you find volume based breakeven points or margins in CVP? CVP is cost volume profit analysis and it’s a form of accounting analysis used t...

What is CVP and Cost-Volume-Profit Analysis? Cost-Volume-Profit analysis is used in accounting to find break-even points (when profit less cost is...