Managerial Accounting | 3 Credits

The overall purpose of this course is for students to demonstrate their understanding and working knowledge of cost accounting fundamentals including cost classification, overhead rate development and application, and various costing methods. Students will classify cost components into appropriate categories (direct versus indirect costs, product versus period costs, direct materials versus direct labor versus manufacturing overhead, etc.), journalize various transactions, post to appropriate accounts, determine and apply appropriate overhead rates, use and apply various costing methods (job order, process, absorption, variable, and activity-based accounting) and create income statements. Students will understand when to use which method and the limitations of each. They will also evaluate the effect product costing methods have on inventory valuation, product pricing, and profit measurement.

Required text: Garrison, Ray H., Eric W. Noreen, and Peter C. Brewer. Managerial Accounting, 14th Edition. ISBN: 978-0078111006

• Classify cost components into appropriate categories to aid in making decisions.
• Apply appropriate overhead rates, and determine the resulting impact on income.
• Distinguish between product costing methods, and analyze their relevance for inventory valuation, product pricing, and profit measurement.

Prerequisites

• BAEF 201x Financial Accounting: Ethics and Internal Controls

Students will prepare a master budget, including sales budget, schedule of cash collections, production budget, direct materials budget, schedule of cash disbursements, direct labor budget, manufacturing overhead budget, finished goods inventory budget, selling and administrative expenses budget, cash budget, and budgeted financial statements. They will also prepare a flexible budget that adjusts for levels of activity that differ from planned activity. Students will compare the planning budget to the flexible budget and the flexible budget to actual results. Students will compute activity variances and revenue and spending variances and then analyze them as a part of evaluating performance. Other components of this project offering include capital budgeting, performance evaluation, and the balanced scorecard. Students will analyze a capital budgeting project using various techniques. They will evaluate the performance using financial and nonfinancial performance measures. They will describe the balanced scorecard and identify common performance measures in the balanced scorecard.

Required text: Garrison, Ray H., Eric W. Noreen, and Peter C. Brewer. Managerial Accounting, 14th Edition. ISBN: 978-0078111006

• Generate a master budget, including management of cash flow, to effectively plan for an accounting cycle.
• Calculate and compare variances to determine appropriate recommendations to improve quality, efficiency, and/or costs.
• Compare costs and benefits of various investment and financing alternatives to make informed business decisions.

Prerequisites

• BAEF 210x Cost Accounting Fundamentals and Applications

The overall purpose of this project offering is for students to be able to determine what accounting information is relevant when making decisions in a business and then use this information to perform various calculations and then make recommendations for those decisions. Students will explore the relationships of cost, volume, and profit and complete calculations related to contribution margin, target profit, break-even analysis, margin of safety, and operating levels. They will further look at how changes in costs, selling prices, and sales volumes affect overall profitability. Students will also be doing calculations to recommend make-versus-buy decisions, special order decisions, and joint cost decisions.

Required text: Garrison, Ray H., Eric W. Noreen, and Peter C. Brewer. Managerial Accounting, 14th Edition. ISBN: 978-0078111006

• Demonstrate knowledge of managerial accounting information and the ways it is used in an ethical fashion by management for planning, controlling, and decision making.
• Communicate how changes in activity affect cost, sales and profitability.

Prerequisites

• BAEF 210x Cost Accounting Fundamentals and Applications