 So far, we've learned a lot about costs and why proper classification is important. Product costs need to be classified separately from period costs because of the difference in timing of when those costs become expenses and where those expenses are reported on the income statement. We've also learned that by refining our overhead allocation, we can calculate more accurate product costs. Doing so allows managers to make more informed decisions about pricing, margin, sales mix, and a product line expansion or discontinuance. In this module, we will look at additional ways to classify costs and how those classifications, mainly between variable and fixed costs, impact management decisions. Furthermore, we will gain an understanding of cost behavior in relationship to production volumes. Maintaining cost behaviors help managers forecast total manufacturing costs at various levels of production volume, determine break-even volume, and predict volume to achieve various operating income targets to name a few. In reality, there are so many ways cost behaviors impact management decisions that the list is just too long and overwhelming to show. The ones shown on this image are just the few covered in this module.