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Upon successful completion of the course the student will be able to:
1. Explain the difference between financial and managerial accounting, the role of managerial accounting and the primary informational needs of managers.
2. List the different types of ethical codes of conduct and acts such as those adpoted by IMA (Institute of Management Accountants) individual companies, International Federation of Accountants (IFAC) codes at the international level, and the Sarbanes-Oxley Act of 2002 explaining the necessity of each in light of recent financial scandals.
3. Define various cost terms and explain their use for different decision purposes.
4. Compare job-order costing and process costing sytem designs for manufacturing or service departments with cost flows, overhead cost applications, equivalent unit cost, etc.
5. Explain cost vehavior and perform cost-volume-profit analysis and use as a predictive tool.
6. Contrast variable and absorption costing related to internal and external reporting and decision making.
7. Examine segment reporting and decentralization as major determinates in responsibility accounting for wide applications in making decisions.
8. Complete operational budgets including the flexible budget and explain their roles in planning and controlling operational costs.
9. Describe the development and use of standard costs.
10. Identify and use relevant costs in making decisions including capital budgeting decisions which incorporate the use of time value of money techniques.
11. Apply financial analysis tools and demonstrate understanding of financial statement information.
12. Apply analytical, interpersonal, and communication skills in problem solving.
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I. Introduction to Management Accounting
A. Role of financial vs. managerial accounting
B. Careers in managerial accounting including certification
C. Emerging issues such as use of technology and risk management in business and non-business organizations
D. Importance of ethics for individuals as well as national and international companies
E. Critical thinking skills, analytical skills, interpersonal and collaborative skills,
F. Business reports
II. Basic Cost Terms and Concepts
A. Product and service costing
B. Cost classifications - different costs for different purposes
C. Financial statement cost classifications
D. Economic cost classifications
III. Systems Design: Job-Order Costing
A. Process and overview
B. Flow of cost
C. Overhead application considerations
D. Cost management in service and manufacturing environments
E. Changes in using information technology
IV. Systems Design: Process Costing
A. Comparison of job-order vs. process costing
B. Flow of cost
C. Equivalent units and computing and applying costs
D. Operation costing
V. Cost Behavior and Estimation
A. Cost behavior patterns and definitions
B. Cost estimation methods
C. Cost predictions using behaviors
VI. Cost Volume Profit (CVP) Analysis
A. Break-even point
B. Contribution margin
C. Target profit planning
D. Multi-product profit planning and effects of sales
E. Contribution format income statement and CVP Analysis
F. Effect of activity-based costing on CVP analysis
VII. Variable Costing
A. Absorption vs. variable Costing
B. Traditional vs. contribution format income statements
C. Effect of change in production on income
D. Internal vs. external reporting
E. Impact of Just-In-Time (JIT) methods
VIII. Operational budgets: The Master Budget
A. Purposes and types of budgets
B. The master budget as a planning tool
C. Assumptions and predictions used in the master budget
D. Behavioral impact of budgets
E. Preparing and using flexible budgets for the control of over-head costs
IX. Standard Costing and Variance Analysis
A. Setting standards and controlling manufacturing costs
B. Standards use in nonmanufacturing organizations
C. Cost variance analysis: materials, labor & overhead
D. Controllability of variances
E. Standard costs and product costs
F. Advantages of standard costing systems
G. Standard costing systems in the new manufacturing environment
X. Segment Reporting and Decentralization
A. Responsibility accounting: cost, profit and investment centers
B. Segmental income reports: preparation and use
C. Additional issues: Proper cost assignment, Return on investment (ROI), and residual income
D. Behavioral effects of responsibility accounting reports
XI. Decision Making
A. Identifying relevant costs and benefits
B. Special decisions: special orders, make/buy, add/drop
C. Behavioral issues in decision making
D. Use of qualitative facts in decision making
E. Risk aversion
XII. Capital Budgeting Decisions
A. Discounted cash flow analysis
B. Choosing the hurdle rate
C. Comparing two investment projects
D. Post audit procedures
E. Effect of income taxes on capital budget decisions
F. Other investment decision methods
G. Ranking investment projects
