Managerial Accounting - Cost Orientation

The video tutorial covers the concept of cost orientation as a strategy to improve company performance by reducing per unit costs. It highlights the role of managerial accounting, which is internally focused and aids in decision-making and strategy development. The tutorial explains the two main cost categories: fixed and variable costs, and discusses various cost accounting methods such as standard costing and activity-based costing. Managerial accounting is presented as a tool to support cost-oriented strategies.

Explain the difference between fixed costs and variable costs.

What is activity-based costing and how does it relate to cost orientation?