ACCT106 Managerial Accounting
Department of Business, Innovation, and Legal Studies: Accounting
- I. Course Number and Title
- ACCT106 Managerial Accounting
- II. Number of Credits
- 4 credits
- III. Number of Instructional Minutes
- 3000
- IV. Prerequisites
- ACCT105 (C or better)
- Corequisites
- None
- V. Other Pertinent Information
- None
- VI. Catalog Course Description
- This course introduces students to the concepts and applications of managerial accounting. Students focus on analysis and recording of various manufacturing costs, cost-volume-profit analysis, preparation of financial statements for a manufacturer, creation of static and flexible budgets and reports, evaluation of capital investments, and various costing systems.
- VII. Required Course Content and Direction
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Course Learning Goals
Students will:
- analyze and record different types of manufacturing costs;
- prepare financial statements for a manufacturer using various costing systems;
- evaluate cost for a manufacturing company and complete cost-volume-profit analysis;
- prepare and evaluate static and flexible budgets and reports; and
- evaluate capital investment opportunities.
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Planned Sequence of Topics and/or Learning Activities
- distinguish between managerial and financial accounting
- identify the cost components of a product made by a manufacturing company: the cost of materials, labor, and overhead
- show how just-in-time inventory can increase profitability
- identify the key components of corporate governance
- identify and describe fixed, variable, and mixed cost behavior
- demonstrate the effects of operating leverage on profitability
- prepare an income statement using the contribution margin approach
- demonstrate how the relevant range and decision context affect cost behavior
- use the high- low method, scatter graphs, and regression analysis to estimate fixed and variable costs
- use the equation method, the contribution margin per unit, and contribution margin ratio methods to determine the break- even point
- set selling prices by using cost- plus, prestige, and target costing
- explain cost- volume- profit relationships and draw and interpret a cost-volume-profit graph
- calculate and interpret the margin of safety
- identify cost objects and cost drivers
- select appropriate cost drivers and demonstrate the allocation of indirect costs
- explain the benefits and detriments of allocating pooled costs
- allocate joint product costs
- allocate service department costs to operating departments
- use activity- based costing to calculate costs of products and services
- identify the components of quality costs; prepare and interpret quality cost reports
- identify the characteristics of relevant information
- distinguish between unit- level, batch- level, product-level, and facility-level costs and understand how these costs affect decision making
- make appropriate special order and outsourcing decisions
- make appropriate segment elimination and asset replacement decisions
- prepare a sales budget and related schedule of cash receipts
- prepare a schedule of cash payments for inventory, purchases budget, and selling and an administrative expense budget
- prepare a cash budget
- prepare a pro forma income statement, balance sheet, and statement of cash flows
- describe flexible and static budgets
- classify variances as being favorable or unfavorable
- compute and interpret sales and variable cost volume variances
- compute and interpret flexible budget variances, fixed cost variances, and price and usage variances
- describe the differences among cost, profit, and investment centers
- relate management by exception to responsibility reports
- determine and interpret the net present value and the internal rate of return of an investment opportunity
- evaluate capital investment opportunities using cash payback and unadjusted rate of return alternatives
- demonstrate the flow of materials, labor costs, and estimated overhead costs for inventory and cost of goods sold for a manufacturing company
- prepare a schedule of cost of goods manufactured and sold
- prepare financial statements for a manufacturing company
- distinguish between absorption, variable costing, and job- order and process costing systems and identify documentation used for each system
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Assessment Methods for Course Learning Goals
The assessment of course learning goals may be based on discussions, homework, quizzes, exams, assignments, papers, performance based tasks and projects, and/or instructor evaluation. -
Reference, Resource, or Learning Materials to be used by Student:
See course syllabus for required textbook and any related materials.
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Review/Approval Date - 5/99; Revised 3/05; Revised 12/2011; Revised 5/2012; New Core 8/2015