Learning objective: Define the core financial terms used in every report and distinguish the cost types directors use to interpret them.

Many directors come into the role through teaching, not accounting. That is normal. Financial reports use a small set of terms over and over, and once those terms are familiar, every report in this course becomes much easier to read.

This lesson covers the vocabulary and cost concepts you will use in every lesson that follows. If these terms are already second nature, move through quickly. You can return to the glossary at any time.