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• Different Methods of allocation (step down, direct, etc) • Know difference between joint product cost, relative sales value, net realizable value etc • In acct we allow an absorption costing – talk about fixed overhead, gaap principles always have a variable costs + avg fixed costs (absorption costing) . .. question will be understanding variable costs/absorption cost kind of concepts • “Almost non-variable” phrase from Hanson case; units produced on x-axis and total costs on y-axis; use regression and slope will be variable cost per unit and y-intercept will be the fixed cost, assume for the moment that min volume done in month of june, max volume in November, etc.