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Principles of Managerial Accounting

Course Description

The use of accounting data by managers for planning and controlling business activities is covered. Topics include cost accounting systems; cost behavior relationships; capital expenditure decision-making; budgeting; and variance analysis.

Course Objectives

Through on-line self-study lectures, homework assignments, and chat-room office hour discussions, quizzes and exams, students will be required to understand:         

• Managerial Accounting and the Business Environment
• Cost Terms, Concepts, and Classifications
• Systems Design: Job-Order Costing
• Systems Design: Process Costing
• Cost Behavior: Analysis and Use
• Cost-Volume-Profit Relationships
• Activity Based Costing- A Tool to Aid Decision Making
• Profit Planning
• Standard Costs and The Balanced Scorecard
• Flexible Budgets and Overhead Analysis
• Segment Reporting and Decentralization
• Relevant Costs for Decision Making
• Capital Budgeting Decisions

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

• differentiate between product and period costs; fixed and variable costs; direct and indirect costs, process and job-order costing
• demonstrate the relationships among cost, volume and profit by applying formulas to calculate break-even sales point, target profit levels, operating leverage and margin of safety 
• prepare the various parts of a comprehensive master budget
• apply relevant cost and benefit information in making decisions related to special orders, dropping or retaining a segment, making or buying a omponent, and selling or further processing joint products
• demonstrate an ability to utilize the various methods in making capital budgeting decisions