FUNDAMENTALS OF MANAGERIAL ACCOUNTING

Course Objectives:
The goal of managerial accounting is to provide business decision-makers with strategically important, timely information for use in planning, controlling, motivating, and decision making. This course enables students to understand the use of accounting information presented in financial statements and internal management reports for planning and control of a business enterprise.

The course is intended as an introduction for individuals who will make business decisions and evaluate the performance of managers and business units using data obtained from the accounting system. It is also a foundation course for further study in management, accounting, and other business disciplines.

Course Description :
This course demonstrates how managers use cost and operating data to make decisions such as which products to produce, what prices to charge, how much inventory to order, when to borrow money, and whether to invest in new machinery. It comprises of basic theory, concepts, and procedures necessary to develop and interpret managerial (internal) accounting data. The focus is on cost behavior, design of job order and process costing systems, cost-volume profit analysis, segment reporting, direct and absorption costing, standard cost systems, flexible budgets, capital budgeting, relevant costs, and product pricing.

Course Outline:
•  Statement of Cash Flows and Financial Statement Analysis.
•  Job Order and Process Cost Systems.
•  Cost Behavior and Cost-Volume Profit Analysis.
•  Profit Reporting for Management Analysis (Variable and Absorption Costing).
•  Budgeting and Standard Costs.
•  Differential Analysis and Product Pricing.
•  Capital Investment Analysis.
•  Cost Allocation, Activity Based Costing and Cost Management for Just-in-Time Environments.
•  Business Ethics.

Learning Outcomes:
Upon successful completion of this course, students will be able to:

1. Evaluate financial statements of a corporate enterprise, including the balance sheet, income statement, and statement of cash flows.
2. Analyze and evaluate the financial position and performance of a business enterprise based upon the organization's financial statements.
3. Compare and contrast activity based costing with the traditional approach, and explain why it might result in more accurate product costing when used by companies that make several different products.
4. Apply various techniques for analyzing mixed costs into variable vs. fixed components, and use the results to predict costs at forecasted levels of activity.
5. Apply cost-volume-profit concepts to break-even analysis, margin of safety, and operating leverage.
6. Evaluate proposed capital budget expenditures on the basis of commonly used project assessment techniques.

 Skills to be developed:
This course helps students in developing the following skills:
•  Communication (Oral & written) Through Assignments, Case Study discussions and
Examinations
•  Analytical Through Case studies and examinations
•  Team Work Through Case studies
•  Creative Thinking Through Case studies, assignments, classroom
discussions
•  Adaptability to Change Through Case studies, and examinations
•  Ethics Through lectures and assignments
•  Use of Information Technology Through use of PCs, Internet, CD-ROM, Statistical
data base in the library
•  International issues Through Case studies, assignments, classroom
discussions, and examinations

Evaluating Student Performance:
Class participation and attendance 10%
Individual assignments 20%
Mid-term examination 20%
Final Exam 50%

Grading:
Percentage Score Letter Grade GPA Points Percentage Score Letter Grade GPA Points

90 – 100 A 4.0 70 - 74 C 2.0
85 - 89 B+ 3.5 65 - 69 D+ 1.5
80 - 84 B 3.0 60 - 64 D 1.0
75 - 79 C+ 2,5 < 60 F 0.0

Educational Resources:

Course Schedule & Outline:
Sixteen Week Semester, 3 hrs/Wk