Topics of discussion part II.

Costs:

- Characterise costs in general and name basic types of costs.

- Explain economic and time differences between costs and expenses.
- Explain a difference between direct and overhead costs.
- Characterise variable and fixed costs – their development according to changes in
production.
- What are vacant fixed costs and why do they arise?
- What are opportunity costs?
- Why is it important to analyse the costs of a company?

Cost calculations:

- Classify and characterize costing methods.

- Characterize a cost calculation.
- Define a calculating unit and basic types of calculating units with examples.
- Name a classification of calculations according to time.
- Characterize conditions of costing methods application – type and amount of business
production.
- Characterize the nature of Activity Based Costing.

Pricing and price calculations:

- Define a term price and its basic functions.

- Characterize the forms of price regulation.
- Characterize the main approaches to pricing and differences among them.
- Identify the main differences in structure of price calculation by manufacturing,
service providing and merchandising activities.
- What kind of discounts can be included into price calculation? Give examples of
particular discounts.
- What is the difference in price calculation by VAT registered and non-registered
company if both subjects purchase inputs from VAT registered supplier?
- Name examples of price differentiation.
- What type of factors influence the process of pricing? - Give some examples of
price goals.

Revenues:

- Explain difference between revenues and incomes.

- Give an example of income that is not a revenue.
- Name three examples of financial revenues.
- Define an added value of company.
- How a company proceeds by computation of added value?
Economic result of enterprise:

- How an economic result of enterprise is computed?

- Explain principle of transformation of accounting economic result to tax economic
result of company.
- Give example of deductible and non-deductible items.
- Characterize difference between direct and indirect method of Cash Flow setting.
- Explain a difference between absolute and relative indicator of profit.
- Name basic ways how Limited Liability Company can distribute a net profit.
- Name three ways of loss settlement in a company.
- Explain principle of tax base reduction by previous loss.