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ACC 102 · Unit 1 of 6

Cost Concepts

Managerial Accounting and Control

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Learning objectives

After completing this unit, you will be able to:

  • Apply frameworks from \
  • Apply the frameworks in "Cost Concepts" to a real management decision
  • Make progress on your Managerial Accounting and Control applied project applied project

Why this matters

Cost Concepts is essential to Managerial Accounting and Control. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Managerial Accounting and Control applied project. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Cost Concepts"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Managerial Accounting and Control applied project?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • Apply frameworks from \
  • Business concepts only matter when they change a decision.
  • Your ACC 102 assessment (Cost concepts, budgeting, variance analysis, and decision-relevant costing for managers.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Cost Concepts45 min
Complete a focused practice exercise on **Cost Concepts**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ACC 102.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Cost Concepts30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ACC 102 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelSpreadsheet model: Cost Concepts60 min
Build a spreadsheet model demonstrating **Cost Concepts**. **Requirements:** - Separate Input, Calculation, and Output sections - Label all units ($, %, units) - Include at least one sensitivity or scenario comparison - Add a balance check or reasonableness test Use Google Sheets or Excel. Link the model to your Managerial Accounting and Control applied project project where applicable.

Deliverable

Spreadsheet file with Inputs / Model / Outputs tabs · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. Maria Chen presents consolidated gross margin near 34% to the board while James Okoro reviews cost per case by plant. Which distinction best explains why both views are legitimate?

2. Northwind's Columbus frozen line has monthly fixed costs near $1.8M and variable costs near $2.41 per Heat & Eat bowl. Production rises from 240,000 to 300,000 bowls within the relevant range. What happens to total cost and cost per bowl?

3. Utility bills at Columbus show 200,000 bowls costing $485,000 and 320,000 bowls costing $677,000 in the same relevant range. Using the high-low method, what is the estimated variable rate per bowl?

4. On Fresno's Heritage Tomato Sauce line, tomato paste is traced to batches while plant security is shared across SKUs. How should security cost reach the sauce SKU margin?

5. Northwind runs a national granola ad campaign costing $2.4M in March. Granola cases produced in March are still in warehouse at month-end. Under GAAP, how is the campaign treated?

6. Northwind debates dropping Heritage Sauce 24oz pouch. A retired label printer with $140,000 net book value remains on the books. For the drop decision, the printer cost is:

7. Priya Shah reconciles WIP at standard cost to finished goods before COGS release. A junior analyst proposes using the same report for a Kroger list-price test without labeling GAAP vs managerial view. What is the primary risk?

8. A supervisor treats Columbus lease, salaried line leads, and blast-freezer depreciation as variable because 'costs always change somewhere in the P&L.' Which correction matches Northwind lessons?

Next unit: Costing Systems →