| Originator: | Bhaskar Singh Status: Approved Department: BUS Business |
| Date Created: | 08/29/2017 Submitted: 08/29/2017 Completed: 10/09/2017 |
| Effective Semester: | Fall |
| Catalog Year: | 2018-19 |
| Course Prefix: | BUS |
| Course Number: | 222 |
| Course Full Title: | Managerial Accounting |
| Old course information: | |
| Reason for Evaluation: | Prerequisite Change Description Change Goals, Competencies and/or Objectives Change |
| Current Credit: | 3 |
| Lecture Hours: | 3 |
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| Clinical Hours: | |
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| If the credit hour change box has been marked, please provide the new credit hour: | |
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| SUN Course?: | Yes |
| AGEC Course?: | No |
| Articulated?: | Yes |
| Transfer: | ASU NAU UA |
| Prerequisite(s): | ACC 125 |
| Corequisite(s): | n/a |
| Catalog Course Description: | This course is intended for individuals who need to be able to read, understand, and use accounting information to make managerial decisions. Emphasis is on managerial and cost accounting for internal decision making, including cost-volume-profit analysis and budgeting procedures. Elements of cost (materials, labor, overhead), product costing procedures (job order, process, standard, activity based, Just-in-time), and variance analysis are studied. Managerial problems that depend upon accounting for adequate solutions are evaluated. These include but are not limited to capital investment, pricing, short-run decisions, and performance measurement and evaluation. |
| Course Learning Outcomes: | 1. Analyze the fundamentals of financial management. (2, 3, 5, 6)
2. Compare and contrast the various methods for financial management. (2, 3, 5, 6) 3. Perform computations and prepare reports for managerial decision-making. (2, 3, 5, 6) 4. Compare management's tools that provide information and analysis for planning and control. (1, 2, 3, 4, 5, 6) 5. Evaluate the information and analysis used for management decision-making. (1, 2, 3, 5, 6) |
| Course Competencies: | Competency 1 Analyze the fundamentals of managerial finance
Objective 1.1 Examine management accounting from financial accounting. Objective 1.2 Analyze the value chain and related business. Objective 1.3 Select the management tools used for continuous improvement. Objective 1.4 Analyze the balanced scorecard for performance measures. Objective 1.5 Analyze nonfinancial data. Objective 1.6 Identify the standards of ethical conduct for management accountants. Competency 2 Construct cost concepts and cost allocation Objective 2.1 Investigate how managers classify costs. Objective 2.2 Use activity-based costing to calculate overhead costs, product or service unit cost. Objective 2.3 Compare how service, retail, and manufacturing organizations report costs on their financial statements. Objective 2.4 List the flow of costs through a manufacturer's inventory accounts. Objective 2.5 Compute product unit cost and the unit cost of a product or service. Objective 2.6 Examine cost allocation Objective 2.7 Classify cost objects, cost pools, and cost drivers used to assign overhead costs. Objective 2.8 Calculate product or service unit cost using the traditional method of allocating overhead costs. Competency 3 Develop various cost systems of management accounting. Objective 3.1 Examine the role that information about costs plays in the management process. Objective 3.2 Compare two basic types of product costing systems by identify the information that each provides. Objective 3.3 Outline the cost flow in a manufacturer's job ordering system. Objective 3.4 Use a job order cost card to compute a job order's product unit cost. Objective 3.5 Apply a job order costing to a service organization. Objective 3.6 Distinguish between job order costing and project costing. Competency 4 Utilize job order costing. Objective 4.1 Describe the process costing system. Objective 4.2 Relate the patterns of product flows to the cost flow methods in a process costing environment. Objective 4.3 Classify the role of the Work in Process Inventory accounts in a process costing system. Objective 4.4 Compute equivalent units by finding equivalent production. Objective 4.5 Prepare a process cost report using FIFO, LIFO, and average costing method. Objective 4.6 Analyze operating performance using information about product cost. Competency 5 Create value for customers through ABM and JIT. Objective 5.1 Outline the role of managers in activity-based systems. Objective 5.2 Define activity-based management (ABM). Objective 5.3 Distinguish between value-adding and nonvalue-adding activities. Objective 5.4 Define activity-based costing. Objective 5.5 Define just-in-time (JIT) operating philosophy. Objective 5.6 Identify the changes in product costing that result when a firm adopts a JIT operating environment. Objective 5.7 Compare ABM and JIT as activity-based systems. Competency 6 Explore management's tools that provide information and analysis for planning and control. Objective 6.1 Define cost behavior. Objective 6.2 Identify variable, fixed, and mixed costs and their components. Objective 6.3 Define cost-volume-profit (CVP) analysis. Objective 6.4 Define breakeven point and use contribution margin to determine a company's breakeven point for multiple products. Objective 6.5 Use CVP analysis to project the profitability of products and services. Competency 7 Complete the Budgeting Process. Objective 7.1 Illustrate management's role in the budgeting process. Objective 7.2 List the elements of a master budget in different types of organizations. Objective 7.3 Prepare the operating budgets that support the financial budgets. Objective 7.4 Prepare a budgeted income statement, a cash flow, and a balance sheet. Competency 8 Analyze management performance. Objective 8.1 Describe how the balanced scorecard aligns performance with organizational goals. Objective 8.2 Analyze performance measurement. Objective 8.3 Define the role that responsibility centers play in performance management. Objective 8.4 Prepare performance reports for cost centers using flexible budgets and for profit centers using variable costing. Objective 8.5 Prepare performance reports for investment centers using the traditional measures of return on investment, residual income, and the measure of economic value added. Objective 8.6 Illustrate how properly linked performance incentives and measures add value for all stakeholders in performance management and performance. Competency 9 Evaluate standard costing and variance. Objective 9.1 Define standard costs. Objective 9.2 Develop standard costs and standard unit cost. Objective 9.3 Prepare a flexible budget. Objective 9.4 Compute direct materials variances, direct labor variances, and overhead variances. Objective 9.5 Analyze computed direct materials variances, direct labor variances, and overhead variances. Objective 9.6 Describe how managers use variance analysis to control costs. Objective 9.7 Use variances to evaluate managers' performance. Competency 10 Evaluate the information and analysis used for short-term decision making. Objective 10.1 Describe how managers make short-term decisions. Objective 10.2 Define incremental analysis and its application to short-run decision making. Objective 10.3 Perform incremental analysis for outsourcing, special order, segment profitability, sales mix, and sell or process-further decisions. Competency 11 Examine pricing decisions, target costing, and transfer pricing. Objective 11.1 Identify the objectives and rules used to establish prices of goods and services. Objective 11.2 Describe economic pricing concepts and the auction-based pricing method used on the internet. Objective 11.3 Use cost-based pricing methods to develop prices. Objective 11.4 Analyze pricing decisions and a new product opportunity. Objective 11.5 Describe how transfer pricing is used for transferring goods and services and evaluating performance within a division or segment. Competency 12 Apply long term capital investment analysis and decision making. Objective 12.1 Define capital investment. Objective 12.2 Calculate the minimum rate of return. Objective 12.3 Identify the types of projected costs and revenues used to evaluate alternatives for capital investment. Objective 12.4 Apply the concept of the time value of money. Objective 12.5 Analyze capital investment proposals using the net present value method, the payback period method, and the accounting rate of return method. Competency 13 Determine the importance of measurement and management of quality. Objective 13.1 Describe a management information system and management decision making. Objective 13.2 Define total quality management (TQM) and related financial and nonfinancial measures of quality. Objective 13.3 Evaluate operating performance using measure of quality. Objective 13.4 Examine the evolving concept of quality. Objective 13.5 Differentiate the rewards and organizations that promote quality. Competency 14 Contrast the allocation of internal service costs and joint product costs. Objective 14.1 Illustrate the allocation of internal service costs and its impact on decision making. Objective 14.2 Distinguish between the two kinds of responsibility centers used in allocating service costs. Objective 14.3 Assign service costs using the direct and step methods. Objective 14.4 Illustrate different methods for assigning service costs. Objective 14.5 Illustrate how service cost allocation relates to overhead rates. Objective 14.6 Apply allocation methods to the costs associated with joint products. Competency 15 Justify financial performance. Objective 15.1 Describe the objectives, standards of comparison, sources of information, and compensation issues in measuring financial performance. Objective 15.2 Apply horizontal analysis, trend analysis, vertical analysis, and ratio analysis to financial statements. Objective 15.3 Apply ratio analysis to financial statements in a comprehensive evaluation of a company's financial performance. |