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These objectives comply with the Calif. Core Competency Model developed
by the Calif. Society of Certified Public Accountants' Committee on
Accounting Education.
This course will prepare the transfer degree and certificate students for
business or accounting programs. 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 informatinal needs
of managers.
2. define various cost terms and explain their use for different decision
purposes.
3. explain cost behavior and perform cost-volume-profit analysis and use
it as a predictive tool.
4. prepare operational budgets including the flexible budget and explain
their role in planning and controlling operations and costs.
5. identify and use relevant costs in making decisions including capital
budgeting decisions which incorporate the use of time value of money
techniques.
6. discuss the development and use of standard costs.
7. prepare and interpret variance reports and relate it to responsibility
accounting and cost controls.
8. explain the difference between short-range and long-range planning and
analytical tools and identify when each would be used.
9. use financial analysis tools and demonstrate understanding of
financial statement information.
10. apply analytical, interperonal, and communication skills in problem
solving.
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WEEK TOPIC
1 I. Introduction to Management Accounting
A. Role of financial versus managerial accounting
B. Careers in managerial accounting and professional ethics
C. Emerging issues in business & non-business organizations
2-3II. 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
E. Cost management in traditional and new mfg environments
F. Introduction to Job Order and Process costing systems
4 III. Cost Behavior and Estimation
A. Cost behavior patterns and definitions
B. Cost estimation methods
C. Cost predictions using behaviors
5 IV. Cost Volume Profit Analysis
A. Break-even point
B. Contribution margin
C. Target profit planning
D. Multi-product profit planning and effects of sales mix
E. contribution format Income Statement and CVP analysis
F. Effect of activity-based costing on CVP analysis
6 V. 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 JIT methods
7-8 VI. 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
9-10 VII. Standard Costing and Variance Analysis
A. Setting standards and controlling mfg 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 mfg environment
11 VIII. Responsiblity Accounting and Performance Evaluation
A. Performance reports: cost, profit and investment centers
B. Segmental income reports:preparation and use
C. Behavioral effects of responsibility accounting reports
12 IX. Decision Making
A. Identifying relevant costs and benefits
B. Special decisions: i.e. special orders, make/buy, add/drop
C. Behavioral issues in decision making
D. Use of qualitative facots in decision making
E. Risk aversion
13-14 X. Capital Budgeting Decisions
A. Discounted cash flow analysis
B. Choosing the hurdle rate
C. Comparing two investment projects
D. Postaudit procedures
E. Effect of income taxes on capital budget decisions
F. Other investment decision methods
G. Ranking investment projects
15-16 XI. Financial analysis
A. Statement of Cash Flows: Preparation and Interpretation
B. Comparative and common-size financial statements
C. Ratio analysis: The common stockholder
D. Ratio analysis: The short-term creditor
E. Ratio analysis: The long-term creditor
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MANAGERIAL ACCOUNTING, 9th Edition, Garrison and Noreen, Irwin McGraw-
Hill Publications, copyright 2000
