10101118Management Accounting
Course Information
Description
Emphasizes the managerial use of accounting reports, the problem-solving functions of accounting in relation to current planning and control, performance evaluation, long-range planning, budgets and cost-volume-profit relationships.
Total Credits
4
Course Competencies
  1. Explain managerial accounting and identify manufacturing costs
    Assessment Strategies
    Exam
    Criteria
    identify types, users, purpose, and content of accounting reports
    identify manufacturing costs and show how their accounting treatment differs from that of period costs
    explain the difference between financial statements of manufacturers vs. those of merchandisers

  2. Determine job flows, costs, and pricing in a job order cost system
    Assessment Strategies
    Exam
    Criteria
    identify the cost flows in a job order cost accounting system
    determine the cost of a job or product
    demonstrate the calculation of a predetermined overhead rate and its application

  3. Explain process cost accounting
    Assessment Strategies
    Exam
    Criteria
    identify the proper application of process costing
    compute equivalent units
    explain the purpose and understand the information provided on a production cost report

  4. Utilize accounting-based costing and activity-based pricing to allocate costs and determine price
    Assessment Strategies
    Exam
    Criteria
    identify the proper application of activity-based costing by calculating costs for a variety of pools and allocating those costs to products
    identify the cost pools and cost drivers used in activity-based costing
    demonstrate the advantages of the activity-based costing approach and explain the differences in cost results when either traditional or activity-based costing is used
    determine price based on activity-based pricing when indirect costs are charged to the customer

  5. Analyze cost-volume-profit relationships
    Assessment Strategies
    Exam
    Criteria
    identify variable and fixed costs based on context
    identify the contribution margin and prepare a contribution margin income statement
    calculate break even sales and impact on break even sales of changes in volume, costs, and cost structure
    compute sales required to achieve a target net income
    predict changes in net income from changes in sales and degree of operating leverage

  6. Prepare a budget and proforma financial statements from assumptions
    Assessment Strategies
    Exam, Project (Master Budget)
    Criteria
    use spreadsheet software
    software reacts appropriately under various assumptions
    identify the components of the master budget
    budget is accurate according to specifications identified by the instructor

  7. Explain budgetary control and responsibility accounting
    Assessment Strategies
    Exam
    Criteria
    flexible budget is accurate according to specification identified by the instructor
    identify the components of responsibility reports for cost centers and profit centers
    calculate and explain return on investment and residual income

  8. Evaluate performance through variance analysis
    Assessment Strategies
    Exam
    Criteria
    explain the significance of standard costs
    compute direct materials and direct labor variances
    demonstrate the utility of a standard cost accounting system

  9. Perform incremental analysis
    Assessment Strategies
    Exam
    Criteria
    explain the concept of incremental analysis in decision making
    identify relevant factors (both quantitative and qualitative) and make decisions regarding special orders, make-or-buy, sell, or process further, or continuance of an unprofitable segment
    identify the significance of the sales mix in the decision-making process

  10. Explain capital budgeting
    Assessment Strategies
    Project (Excel worksheet), Exam
    Criteria
    use a financial calculator to determine net present value and internal rate of return
    use Excel functions to determine net present value, internal rate of return and payback
    identify the purposes of capital budgeting
    compute the cash payback, the net present value, the profitability index, and the internal rate of return using a financial calculator and excel
    explain the result of such calculation and its use in making capital budgeting decisions

  11. Analyze financial statements
    Assessment Strategies
    Written report
    Criteria
    identify the purposes of financial statement analysis and the need for comparative data and research
    apply horizontal and vertical analysis
    compute ratios and explain their significance
    compare results to industry information (or that of a competitor)
    report includes analysis and conclusion