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Unit 5 Discussion View the videos: Navistar International and Boyne Resorts

Unit 5 DiscussionView the videos: Navistar International and Boyne ResortsThe Navistar International video demonstrates the use of standard costs and variance analysisin a manufacturer of trucks and diesels engines with forty major locations, mostly in the UnitedStates. The company uses standard costs and variances analysis to increase control overproduction, cost decisions, and price decisions that enables management to find correctanswers and take appropriate corrective actions to minimize its costs and maximize itsoperating efficiency. The Boyne Resorts video demonstrates how a ski resort uses cost volumeprofit (CVP) analysis in its decision making and to monitor its performance. Variations in snowaffect how the company manages its operations and finances during the winter season. CVPallows the company to determine its breakeven point and guides their critical decisions inmanaging the business. The video exemplifies how a company can use the CVP tool tosuccessfully monitor its profits and manage a business to insure smooth running of a sportsoperation while attaining a high standard of customer satisfaction. The company can control itssignificant variable costs while taking care of its customers.Please respond to the following Discussion Board topics. Take time to review the responses ofyour classmates and provide your feedback.Topic 1What are the three primary uses of a standard cost system? What is the difference betweenideal standards and currently attainable standards?Define these two terms and briefly explain how Navistar uses them in making decisions aboutits standards.Topic 2What information provided by a variable costing income statement is used in computing thebreak-even point? Is this information on an absorption costing income statement? Explain howBoyne Resorts uses CVP analysis to manage its business. Provide examples of fixed andvariable costs.Discuss the reasons Boyne Resorts chose to begin offering major non-ski activities, such aswater park rides, spa services, and expanded retail stores

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