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Summer 2019

Accounting Courses:

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ACC102 - Introduction to Managerial Accounting

Credits: 3

Catalog Description: The concepts and principles of managerial accounting as they apply to financial statements including the statement of cash flows are developed from a user perspective. Topics include manufacturing accounting, cost-volume-profit analysis, decision making, cost accumulation and allocation, budgeting, performance evaluation, responsibility accounting, capital budgeting, cost accounting systems and financial statement analysis. Prerequisite: ACC101.

Lecture: 3 hrs.

Course Learning Outcomes (CLOs):
Upon successful completion of this course, the student will be able to:
1. Distinguish between managerial and financial accounting.

2. Identify the components of product cost in a manufacturing company and distinguish between product costs and expenses including upstream and downstream costs.

3. Analyze costs as fixed, variable and semi-variable behavior, use the high-low method to estimate fixed and variable costs and calculate and apply operating leverage.

4. Use contribution margin to calculate break-even point, to calculate sales volume to attain a target profit and to assess the effects of changes.*

5. Interpret a cost-volume-profit graph, calculate and explain the use of margin of safety, and perform break-even analyses.

6. Identify the characteristics of relevant information including sunk costs and opportunity costs. Apply the concept of cost hierarchy to perform decision analysis for special order, outsourcing, segment elimination and asset replacement.

7. Distinguish between direct and indirect costs and allocate indirect costs by selecting appropriate cost drivers and performing proper mathematical procedures including joint product allocation.

8. Identify and describe the three levels of planning for business activity. Identify, describe and prepare a sales budget, purchases budget, expense budget, associated schedules of cash receipts and payments and a cash budget.

9. Identify, describe and prepare flexible and static budgets. Compute revenue and cost variances and interpret them as favorable or unfavorable performance.

10. Define the concept of decentralization and its relationship to responsibility accounting. Prepare and analyze a responsibility report. Evaluate investment opportunities using return on investment and residual income techniques and explain transfer pricing.

11. Analyze capital investment opportunities by calculating and interpreting net present value, internal rate of return, cash payback period and unadjusted rate of return.

12. Identify, describe and record business events involving a manufacturing entity, including the flow of costs from raw materials through the cost of goods sold, assigning estimated overhead and preparation of financial statements. Calculate net income using both absorption and variable costing.

13. Distinguish between a job-order and process cost accounting system, record business events using each system and explain how the events affect the financial statements of a business.

14. Calculate and analyze ratios to assess a company's debt-paying ability, solvency, managerial effectiveness and position in the stock market. Perform horizontal and vertical analyses.

* This course objective has been identified as a student learning outcome that must be formally assessed as part of the Comprehensive Assessment Plan of the college. All faculty teaching this course must collect the required data and submit the required analysis and documentation at the conclusion of the semester to the Office of Institutional Research and Assessment.

Content Outline:
Segment 1
Management Accounting
Cost Behavior
CVP Analysis

Segment 2
Cost Accumulation
Manufacturing Cost Flow
Product Costing Systems

Segment 3
Special Decisions
Performance Evaluation

Segment 4
Responsibility Accounting
Capital Budgeting
Financial Statement Analysis

Effective Term: Spring 2018