ACC-102 Principles of Managerial Accounting
This course is an introductory course in managerial accounting. Fundamentals cost accounting concepts, financial statement analysis, profitability analysis, budgeting and decision making issues will be discussed.
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Course Outline
Course Description
This course is an introductory course in managerial accounting. Fundamentals cost accounting concepts, financial statement analysis, profitability analysis, budgeting and decision making issues will be discussed.
Credit Hours
4Semester(s) Course Will Be Offered
Fall, Spring
Course Learning Outcomes
- Identify diversity between financial and managerial accounting and the use of accounting data in the decision-making process of managers.
- Demonstrate the use of accounting information in the areas of product costing, cost behavior, cost control, and operational and capital budgeting.
- Analyze and create a statement of cash flow using the indirect method
- Prepare an operating budget, identify its major components, and explain the interrelationships among its various components
Topic Outline
1. Overview of Managerial Accounting
a. Differences between Managerial and Financial Accounting
b. Product costs in manufacturing companies
c. Product costs in service companies
d. Emerging trends in managerial accounting
Cost Behavior and Profitability Analysis
a. Fixed cost behavior
b. Variable cost behavior
c. Contribution margin
d. Relevant range
e. Estimating fixed and variable costs
Cost, Volume, Pricing Analysis
a. Unit contribution margin
b. Breakeven point
c. Using contribution approach to estimate the effects of changes in sales price, variable costs, and fixed costs
Cost Accumulation, Tracking and Allocation
a. Use of cost drivers to accumulate costs
b. Direct and indirect costs
c. Establishment of cost pools
d. Allocation of joint costs
Planning for Profit and Cost Control
a. The planning process
b. Budgeting
Performance Evaluation
a. Flexible budgets
b. Determination and analysis of budget variances
c. Standard costs
d. Manufacturing cost variances
i. Price and usage variances
ii. Variable overhead variances
iii. Fixed overhead variances
Responsibility Accounting
a. Responsibility reports
b. Managerial performance measurement
c. Responsibility centers
Planning for Capital Investments
a. Capital investment decisions
b. Time value of money
c. Techniques for analyzing capital investments
d. Techniques for measuring investment cash flows
e. Techniques for comparing alternative capital investment opportunities
Product Costing in Service and Manufacturing Entities
a. Cost flows and reporting in a manufacturing environment
b. Cost flows and reporting in a service environment
Financial Statement Analysis
a. Horizontal analysis
b. Vertical analysis
c. Ratio analysis
d. Strengths and limitations of analytical tools
Cash Flow Statements
a. Indirect method