Principles of Managerial Accounting Syllabus ACG 2071, summer 2018, June 25 - July 27

Transcription

1 Principles of Managerial Accounting Syllabus ACG 2071, summer 2018, June 25 - July 27 Course & Faculty Information Lecturer: Time: Monday through Friday (1.8 contact hours each day) Contact hour: 45 hours Credit: 3 Office hours: By Appointment Course Description This course introduces the student to the use of accounting information by managers. Topics include the use of accounting information for planning and controlling, capital investment, performance evaluation, decision making, and the statement of cash flows, along with financial statement analysis. Textbook Information Financial & Managerial Accounting, Information for Decisions, 6 th edition by John J. Wild. Ken W. Shaw and Barbara Chiappetta Course Objectives Measurable Course Objectives are outcomes, students are expected to achieve by the end of the course. Distinguish between financial accounting and managerial accounting and understand the basic terminology involved in accounting for costs. Calculate costs and journalize transactions using the job order cost system. 1

2 Calculate costs and journalize transactions using the process cost system. Calculate total variances for direct materials, direct labor and factory overhead. Calculate the break-even point and other statistics using cost-volumeprofit analysis. Prepare financial statements for a firm where production and sales are not equal using absorption costing and variable costing. Distinguish between centralized and decentralized operations and between cost centers, profit centers, and investment centers. Prepare an income statement through contribution margin. Use rate of return on investment, profit margin and investment turnover to analyze the performance of investment centers. Make operating decisions based on differential analysis. Calculate product price using the cost-plus approach based on total cost, product cost, and variable cost. Perform a discounted cash flow analysis. Calculate various financial ratios. Prepare a statement of cash flows. The Collegewide Student Learning Outcomes assessed and reinforced in this course include the following: Communication Critical Thinking Scientific and Quantitative Reasoning Course Materials: Basic Calculator (cell phones and graphing calculators may not be used) Internet access (use of laptop computers/ electronic devices are not permitted during class) Notebook and pencil (exams must be completed in pencil) Evaluation & Grading: 2

3 Your grade will be determined based on the following point system. Points Value Pre-work quizzes 55 varies Homework 100 varies Course Work 45 varies Ch 13 project Exams each Total 650 Grading Scale: A = % B = 80-89% C = 70-79% D = 60-69% F = Below 60% Communication You are required to check your {inbox) periodically. Attendance and Tardiness. Your success in this course depends on your active involvement (i.e. attendance, participation, homework completion). Students are accountable for all information presented in class regardless of attendance. It is up to you to withdraw yourself. Tests. There are 4 unit exams during the term. If you do not take an exam at 3

4 the scheduled time, you will automatically receive a zero for that exam. The purpose of this policy is fairness. If you experience a medical emergency or death in the family, you must notify me prior to the exam. The reason for missing the exam and verification of that reason must be provided in writing. Exams taken before the scheduled date and assignments accepted early will be handled on a case by case basis but should not be expected. Note: Unless otherwise noted in class, students are expected to memorize the formulas and computations used to solve problems. Anything said or presented in class, in the text, on homework, quizzes or previous exams is subject to testing. Students may not leave the room during an exam unless they are ready to turn in their exam. In addition, all personal communication devices should be turned off and put away during class and exam time. Assignments Assignments are problems and short answer questions that promote your ability to apply knowledge and communicate course information professionally and within the context of business and accounting rules and standards. Points will be deducted for assignments that are incomplete, wrong or not professionally prepared. Due dates will be communicated in class. No points will be earned for assignments turned in late or submitted by . The answers to assignments and homework will be provided in class after the due date. You are required to complete work inside and outside of class. If you fail to turn in an assignment because you missed class it will not be accepted. All assignments and class work are to be completed on an individual basis, unless otherwise stated. I suggest you establish the 'buddy system with another student. Your buddy will be your source of information if you miss class and need to find out what was covered in class. Make-up exams and assignments: Make-up exams and assignments will not be allowed, except in the case of documented events such as jury duty or military service. Acceptance of documentation is at sole discretion of the instructor. Please arrive 15 minutes early for the appointment time you choose. You will not be allowed to take the make-up exam if you are even one minute late for your appointment. Bring your ID pencil, and calculator(no graphing calculators or cell phones). Learning Objectives by chapter Chapter 12 Reporting Cash Flows 1. Distinguish between operating, investing, and financing activities, and 4

5 describe how noncash investing and financing activities are disclosed. 2. Analyze the statement of cash flows and apply the cash on total assets ratio. 3. Prepare a statement of cash flows. 4. Compute cash flows from operating activities using the indirect method. 5. Determine cash flows from both investing and financing activities. Chapter 13 Analysis of Financial Statements 1. Explain the purpose and identify the building blocks of analysis. 2. Describe standards for comparisons in analysis. 3. Summarize and report results of analysis. 4. Explain and apply methods of horizontal analysis. 5. Describe and apply methods of vertical analysis. 6. Define and apply ratio analysis. Chapter 14 Managerial Accounting Concepts and Principles 1. Explain the purpose and nature of, and the role of ethics in, managerial accounting. 2. Describe accounting concepts useful in classifying costs. 3. Define product and period costs and explain how they impact financial statements. 4. Explain how balance sheets and income statements for manufacturing, merchandising, and service companies differ. 5. Explain manufacturing activities and the flow of manufacturing costs. 6. Describe trends in managerial accounting. 7. Assess raw materials inventory management using raw materials inventory turnover and days sales in raw material inventory. 8. Compute cost of goods sold for a manufacturer and for a merchandiser. 9. Prepare a schedule of cost of goods manufactured and explain its purpose and links to financial statements. Chapter 15 Job Order Costing and Analysis 1. Describe important features of job order production. 2. Explain job cost sheets and how they are used in job order costing. 5

6 3. Apply job order costing in pricing services. 4. Describe and record the flow of materials in job order costing. 5. Describe and record the flow of labor costs in job order costing. 6. Describe and record the flow of overhead costs in job order costing. 7. Determine adjustments for overapplied and underapplied overhead. Chapter 16 Process Costing and Analysis 1. Explain process operations and the way they differ from job order operations. 2. Define and compute equivalent units and explain their use in process costing. 3. Describe accounting for production activity and preparation of a process cost summary using weighted average. 4. Compare process costing and job order costing. 5. Explain and illustrate a hybrid costing system. 6. Record the flow of materials costs in process costing. 7. Record the flow of labor costs in process costing. 8. Record the flow of factory overhead in process costing. 9. Record the transfer of goods across departments, to finished goods inventory and to cost of goods sold. Chapter 17 Activity-Based Costing and Analysis 1. Distinguish between the plantwide overhead rate method, the departmental overhead rate method, and the activity-based costing method. 2. Explain cost flows for activity-based costing. 3. Describe the four types of activities that cause overhead costs. 4. Identify and assess advantages and disadvantages of the plantwide overhead and departmental overhead rate methods. 5. Identify and assess advantages and disadvantages of activity-based costing. 6. Allocate overhead costs to products using the plantwide overhead rate method. 6

7 7. Allocate overhead costs to products using the departmental overhead rate method. 8. Allocate overhead costs to products using the activity-based costing method. Chapter 18 Cost Behavior and Cost -Volume-Profit Analysis (CVP) 1. Describe different types of cost behavior in relation to production and sales volume. 2. Describe several applications of cost-volume-profit analysis. 3. Compute the contribution margin and describe what it reveals about a company s cost structure. 4. Analyze changes in sales using the degree of operating leverage. 5. Determine cost estimates using the scatter diagram and high-low methods of estimating costs. 6. Compute the break-even point for a single product company. 7. Graph costs and sales for a single product company. 8. Compute the break-even points for a multiproduct company. Chapter 19 Variable Costing and Analysis 1. Describe how absorption costing can result in overproduction. 2. Use variable costing in pricing special orders. 3. Compute unit cost under both absorption and variable costing. 4. Prepare and analyze an income statement using absorption costing and using variable costing. 5. Convert income under variable costing to the absorption cost basis. 6. Determine product selling price based on absorption costing. Chapter 20 Master Budgets and Performance Planning 1. Describe the benefits of budgeting and the process of budget administration. 2. Describe a master budget and the process of preparing it. 3. Analyze expense planning using activity-based budgeting. 4. Prepare the operating budget components of a master budget for a manufacturing company. 7

8 5. Prepare a cash budget. 6. Prepare budgeted financial statements. Chapter 21 Flexible Budgets and Standard Costs 1. Describe standard costs and explain how standard cost information is useful for management by exception. 2. Describe cost variance and what they reveal about performance. 3. Analyze changes in sales from expected amounts. 4. Prepare a flexible budget and interpret a flexible performance report. 5. Compute materials and labor variances. 6. Compute overhead controllable and volume variance. Chapter 22 Performance Measurement and Responsibility Accounting 1. Distinguish between direct and indirect expenses and identify bases for allocating indirect expenses to departments. 2. Analyze investment centers using return on investment and residual income. 3. Analyze investments centers using profit margin and investment turnover. 4. Analyze investment centers using the balanced scorecard. 5. Compute cycle time and cycle efficiency, and explain their importance to production management. 6. Prepare a responsibility accounting report using controllable costs. 7. Allocate indirect expenses to departments. 8. Prepare departmental income statements and contribution reports. Chapter 23 Relevant Costing for Managerial Decisions 1. Describe the importance of relevant costs for short-term decisions. 2. Evaluate short-term managerial decisions using relevant costs. 3. Determine product selling price based on total costs. 4. Identify relevant costs and apply them to managerial decisions. Chapter 24 Capital Budgeting and Investment Analysis 8

9 1. Analyze a capital investment project using break-even time. 2. Compute payback period and describe its use. 3. Compute accounting rate of return and explain its use. 4. Compute net present value and describe its use. 5. Compute internal rate of return and explain its use. Appendix B Time Value of Money 1. Describe the earning of interest and the concepts of present and future value. 2. Apply present value concepts to a single amount by using interest tables. 3. Apply present value concepts to an annuity by using interest tables. Course Outline: Please note that this outline is meant to give an overview of the major concepts this course. Changes may occur in this calendar as needed to aid in the student s development. Best way to study and prepare in addition to reading the chapter: Read the Chapter Preview, Learning Objectives and opening story at the beginning of each chapter. Pay attention to the Point, Decision Insight, and Need-To-Know sections throughout chapter. Read and understand the Global View, Summary, Key Terms, and Quiz at the end of each chapter. Understanding accounting terminology is critical. Week 1 Introduction Discuss Chapter 12 Chapter 12 Discuss Chapter 24 and Appendix B 9

10 Chapter 24 Review for Exam 1 Week 2 Exam 1 Chapters 12 & 24/Appendix B Discuss Chapter 14 Give out Group Project Chapter 14 Discuss Chapter 15 Chapter 15 work on project Week 3 Discuss Chapter 16 Chapter 16 Review for Exam 2 Exam 2 Chapters 14, 15 and 16 Discuss Chapter 18 Chapter 18 Week 4 Discuss Chapter 19 Chapter 19 Discuss Chapter 23/Review for Exam 3 Exam 3 Chapters 18, 19 & 23 Discuss Chapter 20 Chapter 20 Week 5 Discuss Chapter 21 Chapter 21 Chapter 22 Discuss Chapter 22 Review for Exam 4 Exam 4 Chapters 20, 21 & 22 Academic Integrity As members of the Seminole State College of Florida community, students are expected to be honest in all of their academic coursework and activities. Academic dishonesty, such as cheating of any kind on examinations, course assignments or projects, plagiarism, misrepresentation and the unauthorized possession of examinations or other course-related materials, is prohibited. 10

11 Plagiarism is unacceptable to the college community. Academic work that is submitted by students is assumed to be the result of their own thought, research or self-expression. When students borrow ideas, wording or organization from another source, they are expected to acknowledge that fact in an appropriate manner. Plagiarism is the deliberate use and appropriation of another's work without identifying the source and trying to pass-off such work as the student's own. Any student who fails to give full credit for ideas or materials taken from another has plagiarized. Students who share their work for the purpose of cheating on class assignments or tests are subject to the same penalties as the student who commits the act of cheating. When cheating or plagiarism has occurred, instructors may take academic action that ranges from denial of credit for the assignment or a grade of "F" on a specific assignment, examination or project, to the assignment of a grade of "F" for the course. Students may also be subject to further sanctions imposed by the judicial officer, such as disciplinary probation, suspension or dismissal from the College. 11