AC-250 Managerial Accounting

Course Description: This course develops concepts and potential ethical issues related to the accounting information that managers need in carrying out three essential functions within the business enterprise, such as how to plan operations, to control activities and to make decisions.

A.  PROGRAM LEARNING OUTCOMES (PLOs): 

The student will be able to:

1.   The different functional areas of business – accounting, management, marketing, economics, and finance – by emphasizing their importance in an organization and describing their interrelationship in the organization’s attempt to achieve its objectives.

2.   The use of cost and managerial accounting concepts and techniques as management tools for planning, controlling, evaluating performance and making decisions.

3.   Business mathematics and elementary statistics by accurately performing common business computations, statistical data presentation and analysis.

4.   Intercultural writing and speaking appropriate for business.

5.   The legal environment and ethical challenges confronting business in general and in the FSM, from both local and global perspectives.

 

B.  STUDENT LEARNING OUTCOMES (SLOs) - GENERAL:   

The student will be able to:

1.   Identify the kinds of accounting information the manager needs to carry out three essential functions of planning, controlling, and making decisions.

2.   Use cost accounting information to determine product costs for internal management and external financial reporting.

3.   Analyze the role of accounting in business situations and make informed, ethical decisions.

 

SLO

PLO1

PLO2

PLO3

PLO4

PLO5

1

 

ID

 

 

 

2

 

IDM

 

 

 

3

 

 

 

 

 

 

I = Introduced

D = Demonstrated

M = Mastered

 

C.  STUDENT LEARNING OUTCOMES (SLOs) - SPECIFIC: 

      The student will be able to: 

 

      General SLO 1.  Identify the kinds of accounting information the manager needs to carry out three essential functions of planning, controlling, and making decisions.

Student Learning Outcomes

Assessment Strategies

1.1    Describe how budgets are used to plan and how performance reports are used to evaluate; distinguish between manufacturing and non-manufacturing costs and between product and period costs; describe the flow of product costs in a manufacturing firm’s accounts; distinguish between fixed and variable costs, direct and indirect costs, and controllable and non-controllable costs.

Assignment, Exam

1.2    Discuss how budgets are used in planning and control; describe why flexible budgets are needed for performance evaluation; describe the conflict between the planning and control uses of budgets.

Assignment, Exam

1.3    Identify the common cost behavior patterns; estimate the relationship between cost and activity using account analysis; perform cost-volume-profit analysis.

Assignment, Class Work Exam

1.4    Explain how standard costs are developed; calculate and interpret variances; record standard costs in a manufacturing firm’s accounts.

Assignment, Class Work, Exam

 

      General SLO 2. Use cost accounting information to determine product costs for internal management and external financial reporting.

Student Learning Outcomes

Assessment Strategies

2.1    Discuss the types of product costing systems; explain the relationship between the cost of jobs and Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold; describe how direct material, direct labor, and manufacturing overhead are traced to jobs.

Assignment, Class Work, Exam

2.2    Describe product flows through departments and record cost flows in accounts; discuss the concept of equivalent units; calculate the cost per equivalent unit; calculate the cost of goods completed and the ending work in process balance in a processing department; describe a production cost report.

Assignment, Class Work, Exam

2.3    Explain why indirect cost are allocated; describe the cost allocation process; discuss the allocation of joint costs; discuss activity-based costing and cost drivers.

Assignment, Class Work, Exam

     

      General SLO 3.Analyze the role of accounting in business situations and make informed, ethical decisions.

Student Learning Outcomes

Assessment Strategies

3.1    Identify potential ethical issues in treating period costs as product costs and vice versa to reflect higher income or lower cost of goods sold in the income statement.

Assignment, Exam

3.2    Select an appropriate cost driver to allocate costs to products or services in a way that does not intentionally distort realistic cost calculations.

Assignment, Exam

 

 

D.  COURSE CONTENT

1.      Managerial Accounting and Cost Information-General introduction, Cost Classifications for Manufacturing firms, Flow of Product Costs in Accounts, Cost of Services.

2.      Job-Order Costing and Changes in the Manufacturing Environment Use of Product Cost Information, Types of Costing Systems, Job-Order Costing System, Flow of Costs, Allocating Overhead to Jobs, Changes in the Manufacturing Environment and Product Costing Systems.

3.      Process Costing - Difference Between Job-Order and Process Costing Systems, Product and Cost Flows, Calculating Unit Cost, Production Cost Report.

4.      Cost-Volume-Profit Relationships - Common Cost Behavior Patterns, Cost Estimation Methods, Cost-Volume-Profit Analysis, Multiproduct Analysis.

5.      Cost Allocation and Activity-Based Costing - Purposes of Cost Allocation, Process of Cost Allocation, Allocating Joint Costs, Problems with Cost Allocation.

6.      Budgetary Planning and Control - Developing the Budget, The Master Budget, Budgetary Control, Investigating Budget Variances

7.      Standard Costs and Variance Analysis - Standard Costs and Budgets, Development of Standard Costs, General Approach to Variance Analysis

 

E.  METHODS OF INSTRUCTION

1.   Lectures/discussions

2.   Slide Presentations

3.   Problem solving

4.   Collaborative learning

5.   Individual or group projects

6.   Online support

 

F.  REQUIRED TEXT(S) AND COURSE MATERIALS

Kinney, M.R. & Raiborn, C.A. (2011). Cost Accounting: Foundations and Evolutions. Ohio: South-Western Cengage Learning (or most recent edition).

 

G.  REFERENCE MATERIALS

Hansen, D.R., Mowen, M.M., & Guan, L. (2009). Cost Management: Accounting and Control. . Ohio: South-Western Cengage Learning (or most recent edition).

Maher, M.W., Stickney, C.P., & Weil, R.L. (2008). Managerial Accounting: An Introduction to Concepts, Methods and Uses. Ohio: South-Western Cengage Learning (or most recent edition).

VanDerbeck, E.J. (2008). Principles of Cost Accounting. Ohio: Thomson South-Western (or most recent edition).

Walther, L. (2011). Principles of Accounting. Retrieved October 25, 2011, from http://www.principlesofaccounting.com

 

H.  INSTRUCTIONAL COSTS

None

 

I.   EVALUATION

This course requires a grade of “C” or better to qualify for T.Y.C. Accounting.

 

J.   CREDIT BY EXAMINATION

None

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