Management Services Reviewer by Ma. Elenita Balatbat-Cabrera

Transcription

1 Course Name: Course Title: Instructors: Required Text: Course Description: XMASREV Management Services Review David, Dimalanta and Morales Management Services Reviewer by Ma. Elenita Balatbat-Cabrera This is a review course and it contains topics discussed on previous courses taken. It acquaint students with the role of the accountant in the management team in providing and assisting in the analysis, interpretation and forecasting of business organizations. It focuses on the objectives, scope, foundation, techniques of management accounting, management consultancy, financial management for planning and control. Students are expected to demonstrate ethical behavior and skills in preparing and analyzing accounting data as applied in a wide range of planning, control and decision making decisions. It deals with the application of techniques and concepts focusing on segment reporting, profitability analysis, decentralization, relevant costing, capital budgeting, business planning, balanced scorecard and nonfinancial indicators and environmental cost accounting. It also focuses on the different valuation models and dividend policies. Students are expected to demonstrate ethical behavior and skills in preparing and analyzing accounting data as applied in decision making and in management consultancy. Topic Outline: Estimated No of Hours 1. Management Accounting 2.00 Objectives, Scope, Relationship with Financial Accounting and Cost Accounting Role and Activities of Management Accountant The Controller as the Top Management Accountant Organizational Structure and the Management Accountant The Changing World and Expanding Role of the Management Accountant 2. Certification on Available to Management Accountants 2.00

2 The Institute of Management Accountants The CMA Certification 3. Understanding External Financial Statements 3.00 Conceptual Framework for the Preparation and Presentation of the Financial Statement Qualitative Characteristics of Accounting Information The Basic Financial Statements The Balance Sheet Statement The Income Statement The Statement of Changes in Equity The Cash Flow Statement Assessing Information Weakness in Financial Statements 4. Analysis and Interpretation of Financial Statements 4.00 Objectives of Financial Statement Analysis General Approach to Financial Statement Analysis Limitations of Financial Statement Analysis Steps in Financial Statement Analysis Identification of Matters for Further Interpretation of Information Produced Assessment of the Impact of Pricelevel Changes on Financial Analyses Analysis of Business Performance and Financial Position Comparative Financial Statements/ Corresponding figures Trend Percentages Common-size Financial Statements Financial Ratios Cash Flow Analysis Gross Profit Variation 5. Cost Terms and Concepts 3.00 Nature and Classification of Costs Basics of Cost Behavior Cost Classifications on Financial Statements

3 Flow of Costs in Manufacturing, Commercial or Trading and Service Companies 6. Variable Costing: A Tool for Management 4.00 Underlying Concepts of Variable Costing Underlying Concepts of Absorption Costing Comparison between Variable Costing and Absorption Costing Preparation of Financial Statements under Variable Costing/ Absorption Costing 7. Opportunity Costing Concepts 2.00 Relevant costs considered in evaluating business opportunities 8. Cost-Volume-Profit Relationship 2.00 Basics of CVP Analysis Significance of CVP analysis Assumptions and Limitations of CVP Analysis CVP Analysis with Changes in Cost Structure CVP Analysis for a Multi-Product Firm Preparation of Break-even graph Uses of CVP 9. Responsibility Accounting 2.00 Goal Congruence and Motivation Types of Responsibility Centers Cost Center Revenue Center Profit Center Investment Center 10. Functional and Activity-Based Budgeting: The Basic 3.00 Framework of Functional and Activity-Based Budgeting

4 Relationship between Planning and Control Underlying Concepts Budgeting as a Multi- purpose Activity Budgeting and Behavioral Influences Control Theory and Budgeting Uncertainty and Budgeting Types of Budgetary Systems 11. Standard Costs 3.00 Rationale Standard Costs Users of Standard Costs Benefits and Limitations of Standard Costs International Uses of Standard Cost How Standards are set Setting Direct Materials Setting Labor Standards Setting Overhead Standards 12. Performance Measurement Using Variances 3.00 Operating Performance Evaluation Analysis of Variance Direct Materials Variance Analysis Direct Labor Variance Analysis Factory Overhead Combined Manufacturing Overhead Variance Analysis Structure of Performance Reports Evaluation of Controls based on Standard Cost Flexible Budgets and Overhead Analysis = = = = = = = = = = PRELIM EXAMINATION= = = = = = = = = = 13. Application of Quantitative Techniques in Planning, Control and Decision Making 5.00 Rationale in Using Quantitative Techniques

5 More Commonly used Quantitative models for planning, control and decision making Probability Payoff (decision ) Tables Value of Perfect information Decision Tree Learning Curve Simulation Technique Monte Carlo Technique Sensitivity analysis Queuing Linear Programming Program Evaluation and Review Technique Gantt Chart Inventory Modeling Regression Analysis Present Value Concept 14. Using Accounting Information in Decision Making, Relevant Costs and Benefits 3.00 The Decision Making Process Identifying Relevant Costs Approaches in Analyzing Alternates in Non routine Decision Making 15. Capital Budgeting Decisions 5.00 Capital Budgeting Defined Characteristics of a Capital Investment Decision Categories of Capital Investment Elements of Capital Budgeting Capital Budgeting Decisions Preference Decisions- The Ranking of Investment Projects Comparing Preference Rates Inflation and Capital Budgeting

6 Optimal Capital Budget 16. Decentralized Operations and Segment Reporting 5.00 Advantages and Disadvantages of Decentralization Decentralization and Segment Reporting Segment Reporting and Profitability Analysis 17. Business Planning 5.00 Importance of a business plan. Elements of a good business plan Elements of good business planning Segments of a business plan 18. Appraisal Performance: Financial and Non-financial 3.00 Financial and Non-financial Performance Measures Different Performance Measures Return on investment Economic value added Return on sales 19. Managing productivity and Marketing Effectiveness 3.00 Productivity Partial Operational and financial productivity and total productivity Components of sales variance to assess marketing effectiveness 20. Executive Performance Measures and Compensation 2.00 Objectives of management accounting Cash and non-cash compensation Aspects of a bonus plan 21. Managing Accounting in a Changing Environment 2.00 Guidelines for Implementing total quality management Benefits of a just in time production system Measures in the theory of constraints

7 = = = = = = = = = = MIDTERM EXAMINATION = = = = = = = = = = 22. Areas of Management Consultancy 7.00 Overview of Management Advisory Services (MAS) Professional Attributes of Management Consultants Organization and Management of MAS Management of Clients and People 23. Information System Engagements 7.00 Management and Accounting Information System Management and Operations Audits 24. Project Feasibility Study 7.00 Basic Concepts of Feasibility study Aspects of Project Feasibility Study 25. Financial Management-Related Engagements Financial forecasting Working capital and financing decisions Management of current assets Short term credit for financing current assets Long term financing Sources of immediate and long term financing Hybrid financing = = = = = = = = = = FINAL EXAMINATION = = = = = = = = = = Recap Identification of CPC Topics Covered in this Course Estimated Contact Hours Accounting 80 Marketing 1 Finance 12 Management 3

8 Organizational Behavior 1 Human Resource Management 2 Operations Management 5 Legal Environment of Business 5 Economics 4 Ethics 4 Information System 4 Quantitative Methods/ Statistics 3 International/ Global Dimensions of Business 5 Integrative Experience 15 Total Estimated Contact Hours 144