COURSE NUMBER AND TITLE: Accounting 232, Principles of Management
Accounting (ACCT 2302).
COURSE DESCRIPTION: Introduction to concepts, principles, and
processes applicable to the collection and reporting of data useful for planning,
controlling and decision-making. Prerequisite: ACC 231.
GENERAL OBJECTIVE: To introduce the student to the basic concepts
of accounting for management. This includes the collection, presentation, and analysis of
data for product costing, product pricing, forecasting, performance evaluation and
decision making.
LEARNING OBJECTIVES: Upon successful completion of this course, the
student should be able to:
1. Understand the objectives of management accounting.
2. Recognize the ethical issues affecting management accounting.
3. Use current management accounting terminology.
4. Describe and apply the different methods of accounting for manufacturers and service-based enterprises.
5. Analyze accounting information, select relevant data, and prepare reports or models to support the management functions of planning, controlling, coordinating and evaluating.
TOPICAL COMPONENTS: The following topics will be presented in the
course:
1. Introduction: An overview of current issues and themes in
management accounting.
2. Basic Cost Terms and Concepts
A. Identify various costs of business.
B. Distinguish between product and period costs.
C. Reaction of costs to changes in activity.
D. Determining cost of goods manufactured.
3. Job-order Costing
A. The flow of costs in a manufacturing environment.
B. Job-order vs Process costing.
C. Normal vs actual costing.
D. Cost allocation.
4. Process Costing and Hybrid Systems
A. Comparison of job-order, process, and hybrid systems.
B. Concept and determination of equivalent units.
C. Preparation of a cost of production report.
D. Weighted-average vs FIFO methods.
5. Cost Management Systems for the New Manufacturing
Environments.
A. Impact of automated, computer assisted manufacturing environment on
management accounting.
B. Activity-Based Costing.
C. Just-in-time inventory systems.
D. Value-added vs non-value added costs.
6. Cost Behavior and Estimation
A. Cost estimation, cost behavior and prediction.
B. Concept of relevant range.
C. Problems of data collection.
D. Committed costs vs discretionary costs.
7. Cost-Volume-Profit(CVP) Analysis
A. Assumptions and limitations of C-V-P.
B. Contribution Margin approach of income determination.
C. Uses of C-V-P in decision making.
8. Budgeting: Profit Planning and Control
A. Benefits and limitations of budgeting.
B. Relationships between budgets.
C. Preparation of operating and financial budgets.
9. Standard Costing and Performance Measures
A. Development and use of standard costs.
B. Behavioral impact of standard cost systems.
C. Measuring and reporting variances from standard.
10. Flexible Budgeting and Control of Overhead Costs
A. Static vs flexible budgets.
B. Overhead application in a standard cost system.
C. Development of flexible budgets.
D. Measuring and reporting overhead variances.
11. Responsibility Accounting/income Reporting
A. Types of cost centers.
B. Concepts of cost allocation.
C. Behavioral aspects of performance evaluation.
D. Absorption vs Variable costing.
12. *Investment Centers and Transfer Pricing
A. Measuring divisional income and invested capital.
B. Concepts of ROI and residual income.
C. Basis and computation of transfer prices.
13. Decision Making: Relevant Costs and Benefits
A. Steps in the decision making process.
B. Quantitative and qualitative issues.
C. Determining relevance of data.
D. Use of short-term decision models.
14. *Capital Expenditure Decisions
A. Time value of money.
B. Impact of income taxes on decision making.
C. Computation of cash flows.
D. Use of capital decision models.
* These topics may be omitted when necessary to
provide for increased classroom activities in your syllabus.
EVALUATION: To provide a sound basis for the evaluation of student
performance, a minimum of two (2) exams must be given during each semester. Exams should
contain a mixture of objective questions, problems from text/lecture materials, and
discussion types requiring short answers. A comprehensive final exam is required during
the Fall and Spring semesters. A minimum of one group assignment (oral or written) is
required. Group classroom activity is encouraged. Other types of evaluation such as
homework, library assignments, and term papers may be used at the discretion of the
instructor.
* A minimum average of 60% on exams must be attained
to satisfactorily complete the course.
