Managerial Accounting

Course Number: BA 213
Transcript Title: Managerial Accounting
Created: September 1, 2012
Updated: June 14, 2020
Total Credits: 4
Lecture Hours: 40
Lecture / Lab Hours: 0
Lab Hours: 0
Satisfies Cultural Literacy requirement: No
Satisfies General Education requirement: No
Grading options: A-F (default), P-NP, audit
Repeats available for credit: 0

Prerequisites

BA 111 or BA 211

Course Description

Examines accounting information from management perspective for planning, performance evaluation and for decision making purposes. Includes cost concepts, product costing, cost-volume-profit relationships, profit planning, variance analysis, responsibility accounting and capital budgeting. Prerequisite: BA 111 or BA 211. Audit available.

Intended Outcomes

Upon successful completion of this course, the student will be able to:

  1. Communicate effectively using basic managerial accounting terminology and concepts in a business environment.
  2. Use an understanding of cost concepts for product costing and to analyze relevant costs.
  3. Understand the nature of costs and apply to cost-volume-profit relationships and activity based costing.
  4. Apply budgeting for business planning and standard costs to perform variance analysis.
  5. Evaluate and measure business performance using knowledge of responsibility accounting.
  6. Apply an understanding of capital budgeting for decision making.

Outcome Assessment Strategies

Assessment methods can include: examinations, quizzes, homework assignments, research papers, case study analysis, and small group problem-solving of questions arising from application of course concepts and concerns to actual experience, oral presentations, and class participation.

Texts and Materials

Text: Accounting, 27th Ed; Warren/Reeve/Duchac; Cengage Learning

Course Activities and Design

The determination of teaching strategies used in the delivery of outcomes is generally left to the discretion of the instructor. Here are some strategies that you might consider when designing your course: lecture, small group/forum discussion, flipped classroom, dyads, oral presentation, role play, simulation scenarios, group projects, service learning projects, hands-on lab, peer review/workshops, cooperative learning (jigsaw, fishbowl), inquiry based instruction, differentiated instruction (learning centers), graphic organizers, etc.

Course Content (Themes, Concepts, Issues and Skills)

Outcome #1:Communicate effectively using basic managerial accounting terminology and concepts in a business environment.

To address this outcome, students should be taught:

  • The relationship and differences between managerial and financial accounting
  • Accounting concepts and analysis related to manufacturing businesses
Outcome #2: Use an understanding of cost concepts for product costing and to analyze relevant costs.

To address this outcome, students should be taught:

  • How to use job order cost systems for both manufacturing and service businesses
  • How to use process order cost systems and understand the associated cost flows
  • How to make decisions using job order costing and process cost of production reports
Outcome #3:Understand the nature of costs and apply to cost-volume-profit relationships and activity-based costing.

To address this outcome, students should be taught:

  • Cost behavior and concepts regarding variable, fixed, and mixed costs
  • The relationships between cost, volume, and profit
  • Mathematical and graphic approaches to cost-volume-profit analysis
  • How to perform activity-based costing and cost allocation
Outcome #4: Apply budgeting for business planning and standard costs to perform variance analysis.

To address this outcome, students should be taught:

  • The standard setting process and ideal vs. attainable standards
  • How to compute manufacturing cost variances for
    • Direct materials price and quantity variances
    • Direct labor rate and time variances
    • Factory overhead variable controllable and fixed volume variances
  • How to journalize cost variances
Outcome #5: Evaluate and measure business performance using knowledge of responsibility accounting.

To address this outcome, students should be taught:

  • The nature of centralized vs. decentralized operations
  • The similarities and differences between cost centers, profit centers, and investment centers
  • How to account for transfer pricing between centers
Outcome #6: Apply an understanding of capital budgeting for decision making.

To address this outcome, students should be taught:

  • The nature of capital investment analysis
  • Methods of capital investment analysis, including average rate of return, cash paybeck, and methods using present values
  • How to perform differential analysis for decision making