MGMT 220 - Managerial Accounting

Basic managerial accounting practices designed to support business are studied in this course. Material focuses on the principles and methods used to forecast and evaluate business performance and support decision making.


Credits: 4


Hours: 60 (Lecture Hours: 4)


Total Weeks: 15


MGMT 103 Foundations in Financial Accounting Level I and MGMT 109 Foundations in Financial Accounting II,
OR MGMT 120 Financial Accounting,

OR consent of instructor.


Non-Course Prerequisites:






Course Content:
- Managerial Accounting and the Business Environment
- Cost Terms, Concepts, and Classifications
- Systems Design: Job Order Costing
- Systems Design: Process Costing
- Cost Behaviour: Analysis and Use
- Cost Volume - Profit Relationships
- Variable Costing: A Tool for Management
- Budgeting
- Standard Costs and Overhead Analysis
- Reporting for Control
- Relevant Costs for Decision Making

- Capital Budgeting Decisions


Learning Outcomes:
Upon successful completion of this course, students will be able to:
- Contrast financial and managerial accounting
- Define and give examples of common cost terms
- Prepare a schedule of cost of goods manufactured and cost of goods sold
- Contrast process costing and job-order costing
- Identify the components of a job-order costing system
- Prepare entries for a job-order costing system
- Calculate and apply predetermined overhead rates
- Explain the flow of costs in a process costing system
- Prepare a production report using the weighted average and FIFO methods
- Apply fixed and variable costs behavior to predict costs
- Analyze mixed costs
- Prepare an income statement using the contribution format
- Compute changes resulting from shifts in sales volume using the contribution margin ratio
- Determine the break-even point
- Calculate sales level required to achieve target profit
- Calculate and apply the margin of safety and degree of operating leverage
- Determine effect of shifts in sales mix
- Complete income statements applying both variable and absorption costing
- Reconcile variable costing and absorption costing net operating incomes and explain differences in the two
net operating incomes
- Prepare a segmented income statement using the contribution format
- Prepare a master budget
- Prepare a flexible budget
- Complete a performance report, including variances, using the flexible budget approach
- Calculate and explain cost and revenue variances
- Calculate and interpret fixed overhead budget and volume variances
- Determine delivery cycle time, throughput time and manufacturing cycle efficiency
- Compute and analyze the return on investment
- Determine residual income
- Prepare an analysis to determine if a product line or organizational segment should be kept or dropped
- Prepare a make or buy analysis
- Determine whether a special order should be accepted
- Identify the most profitable use of a constrained resource
- Prepare an analysis to determine if joint products should be sold at split-off point or processed further
- Apply the net present value method to evaluate an investment project
- Evaluate an investment project using the internal rate of return
- Determine the payback period for an investment

- Calculate the simple rate of return for an investment


Grading System: Letters


Passing Grade: D (50%)


Percentage of Individual Work: 100


Additional Comments:
Assignment Policy: Assignments will be taken from text questions/cases. Assignments are intended to prepare students for examinations and provide feedback on student understanding of course materials. In-class practice sets will assist students with the preparation of assignments. Please refer to course content on following page for outline of assignments. All assignments are to be submitted using the D2L drop box on due date by midnight . Graded assignments will be returned via D2L. Late assignments submitted without prior instructor permission will not be graded. In the spirit of fairness to all students a 5% penalty per day late will be assessed on late assignments unless waived by instructor due to student documented illness or loss in immediate family. Assignment will NOT be accepted if it is over 5 days past due date except under extreme circumstances and at the discretion of the instructor.

Exams: Exams are to be written as scheduled. Please advise instructor immediately if there are exam schedule conflicts. As a general rule, deferred exams are only granted for documented medical causes or a loss in the immediate family. Deferred exams will be written within six days after exam date. It is your responsibility to contact the instructor prior to the scheduled exam to negotiate other arrangements. Rewrites are not permitted


Textbooks are subject to change.  Please contact the bookstore at your local campus for current book lists.