Managerial accounting practices designed to support business are introduced. Material focuses on the principles and methods used to forecast and evaluate business performance and support decision making.
Credits: 3
Hours: 45 (Lecture Hours: 45)
Total Weeks: 15
Prerequisites:
MGMT 109 or MGMT 120 OR permission of Chair.
Non-Course Prerequisites:
None
Co-Requisites:
None
Course Content:
- Contrasting financial and managerial accounting
- Defining and give examples of common cost terms
- Preparing a schedule of cost of goods manufactured and cost of goods sold
- Contrasting process costing and job-order costing
- Identifying the components of a job-order costing system
- Preparing entries for a job-order costing system
- Calculating and apply predetermined overhead rates
- Explaining the flow of costs in a process costing system
- Preparing a production report using the weighted average and FIFO methods
- Applying fixed and variable costs behavior to predict costs
- Analyzing mixed costs
- Preparing an income statement using the contribution format
- Computing changes resulting from shifts in sales volume using the contribution margin ratio
- Determining the break-even point including calculate sales level required to achieve target profit
- Calculating and apply the margin of safety and degree of operating leverage
- Determining effect of shifts in sales mix
- Completing income statements applying both variable and absorption costing
- Reconciling variable costing and absorption costing net operating incomes and explain differences
- Preparing a segmented income statement using the contribution format
- Preparing a master and a flexible budget
- Completing a performance report, including variances, using the flexible budget approach
- Calculating and explain cost and revenue variances
- Calculating and interpret fixed overhead budget and volume variances
- Determining delivery cycle time, throughput time and manufacturing cycle efficiency
- Computing and analyse the return on investment, residual income, internal rate of return, payback period and simple rate of return
- Preparing an analysis to determine if a product line or organizational segment should be kept or dropped
- Preparing a make or buy, special order, constrained resource and joint product analysis
- Applying the net present value method to evaluate an investment project
Learning Outcomes:
Upon successful completion of this course, students will be able to:
- Describe the role of cost accounting and compare/contrast to financial accounting
- Describe costs classification and allocation systems and explain why and how they differ
- Communicate effectively in appropriate cost accounting terms
- Prepare cost allocation reports and journal entries for job costing, activity based costing and process costing systems
- Differentiate between absorption and variable costing methods and prepare financial statements under each method
- Develop cash budgets and master budgets with supporting schedules
- Perform cost-volume-profit analysis via selection of relevant costs to make management decisions
- Develop flexible budgets and calculate and analyze variances
- Assess profitability of projects using appropriate metrics and understand the advantages and drawbacks of the metrics applied
Grading System: Letters
Passing Grade: D (50%)
Percentage of Individual Work: 100
Textbooks:
Textbooks are subject to change. Please contact the bookstore at your local campus for current book lists.