MGMT Managerial Accounting and Finance ( version L )

Transcription

1 MGMT Managerial Accounting and Finance ( version 213L ) Course Title Course Development Support Managerial Accounting and Finance Course Description Standard No The focus of this course is to acquire the skills and concepts necessary to use accounting information in managerial decision making. Course is designed for those who will use, not necessarily prepare, accounting information. Those applications include the use of information for short and long term planning, operational control, investment decisions, cost and pricing products and services. An overview of financial accounting and basic concepts of finance provides an overview of financial statement analysis. Pre-requisites Pre-requisites: One Required Program Admission Co-requisites Co-requisites: None Course Length Minutes Contact Hour Semester Credit WLU Lecture: Lab 2: Lab 3: Total: Semester Credit Hours: Breakout Detail of Lab 3 Practicum/Internship Clinical Competencies & Outcomes Order Description Lecture Lab 2 Lab 3 Total Min Credit Hrs Pract Intern Clinical 1 Introduction to Managerial Accounting Describe the contemporary view of accounting information systems 2 Describe examples of financial and non-financial accounting information. 3 Recognize the role of relevant factors in decision making. 4 Understand sources of ethical issues in business and the importance of maintaining an ethical business environment. 2 Product Costing 2 2

2 1 Describe basic production processes used by manufacturing companies. 2 Distinguish manufacturing costs from non-manufacturing costs 3 Classify manufacturing costs as direct materials, direct labor, or overhead. 4 Diagram the flow of costs in manufacturing, merchandising, and service companies. 5 Compute the cost of manufacturing or selling goods and services. 6 Evaluate the impact of products costs and period costs on a company s income statement and balance sheet. 3 Cost Behavior Describe the nature and behavior of fixed and variable costs. 2 Identify the difference between variable costing and absorption costing. Knowledge 3 Identify the impact on the income statement of variable costing and absorption costing. Knowledge 4 Recognize the benefits of using variable costing for decision making. 4 Job Costing, Process Costing, and Operations Costing Contrast job costing, process costing, and operations costing. 2 Explain how job costing, process costing, and operations costing are used to accumulate, track, and assign product costs. 3 Recognize issues related to the measurement of direct material and direct labor costs in job costing. 4 Recognize issues related to the allocation of manufacturing overhead cost to products. 5 Explain the need for using predetermined overhead rates. 6 Compute overhead applied to production. 7 Describe basic process costing and the calculation of equivalent units of production. 8 Compare and Contrast the weighted average and first-in, first-out (FIFO) methods of process costing. 9 Apply each step of the four-step process costing system under both process costing methods. Mechanism 5 Activity-Based Costing Classify overhead costs as unit, batch, product, or facility level.

3 2 Describe ABC and its typical activities and cost drivers in an ABC system. 3 Compute the cost of a product using ABC. 4 Compare traditional volume-based costing to ABC. 5 Evaluate the benefits and limitations of ABC systems. 6 Cost-Volume-Profit Use the contribution margin in its various forms to determine the impact of changes in sales on income. 2 Characterize what-if decisions using CVP analysis. 3 Compute a company s breakeven point in single and multi-product environments. 4 Examine target profit before and after the impact of income tax. 5 Compute a company s operating leverage and understand its relationship to cost structure. 7 Relevant Costs and Product Planning Decisions Examine the pricing of a special order. 2 Break down a decision involving the outsourcing of labor or making or buying a component. 3 Administer a decision dealing with adding or dropping a product, product line, or service. 4 Debate a decision dealing with scarce or limited resources. 5 Break down a decision dealing with selling a product or processing it further. 8 Long-Term (Capital Investment) Decisions Evaluate capital investment decisions using the NPV method. 2 Evaluate capital investment decisions using the IRR method. 3 Evaluate capital investment decisions using the payback method. 4 Discuss the limitations of the payback method. 9 Budgets 2 2

4 1 Describe the budget development process, behavioral implications of budgeting, advantages of budgeting, and the master budget. 2 Explain how managers develop a sales forecast. 3 Demonstrate the preparation of a sales budget. 4 Establish a production budget. Guided 5 Recognize how a production budget relates to the material purchases, direct labor, and manufacturing overhead budgets. 6 Establish budgets for material purchases, direct labor, manufacturing overhead, and selling and administrative expenses. Guided 7 Explain the importance of budgeting for cash. 8 Establish a cash receipts budget, a cash disbursements budget, and a summary cash budget. Guided 9 Organize budgeted income statements and balance sheets. Set 1 Evaluate the importance of budgeted financial statements for decision making. 11 Contrast budgeting in a manufacturing company with budgeting in a merchandising company and a service company. 12 Differentiate static budgets from flexible budgets. 1 Variance Describe methods of determining standard costs. 2 Discuss the use of ideal versus practical standards. 3 Establish a flexible budget using standard costs. Guided 4 Contrast a flexible budget with a static budget. 5 Compute a flexible budget variance. 6 Break down the components of a budget variance. 7 Break down the variable manufacturing cost variance into direct material, direct labor, and variable overhead variances. 8 Compute price and usage variances for direct materials, direct labor, variable, and fixed overhead. 9 Recognize important considerations in using and interpreting variances, including the concept of management by exception. 11 Decentralization, Performance & Balanced Scorecard Describe the structure and management of decentralized organizations. 2 Evaluate the benefits and drawbacks of decentralization.

5 3 Evaluate how responsibility accounting is used to help manage a decentralized organization. 4 Define cost, revenue, profit, and investment centers. Knowledge 5 Explain why cost, revenue, profit, and investment center managers must be evaluated differently. 6 Interpret the computation of segment margin in an organization. 7 Compare and Contrast and contrast return on investment (ROI) and residual income. 8 Describe the balanced scorecard and its key dimensions. 9 Define quality costs. Knowledge 1 Explain the tradeoffs among prevention costs, appraisal costs, internal failure costs, and external failure costs. 11 Recognize the importance of using incentives to motivate managers. 12 Discuss the advantages and disadvantages of using cash-based, stock-based, and other forms of managerial compensation. 12 Financial Statement Explain why decision makers analyze financial statements. 2 Recognize the limitations of financial statement analysis. 3 Use comparative financial statements to analyze the performance of a company over time (horizontal analysis). 4 Implement common size financial statements to compare various financial statement items (vertical analysis). Mechanism 5 Implement liquidity, solvency, and profitability ratios to analyze a company. Mechanism 13 The Statement of Cash Flows Recognize the purpose of a statement of cash flows and the activities making up a cash flow statement. 2 Discuss the difference between the direct and the indirect methods of computing cash flow from operating activities. 3 Construct a comprehensive statement of cash flows using the direct and indirect methods. Complex Competency Totals: Lecture 225 Lab 2 Lab 3 Total Min 225 Cred Hrs 3 Pract Intern Clinical