Course Prefix/Number: ACCT
202
Course Title: Managerial
Accounting
Division: Applied
Science Division
Program: Business/Office
and Information Systems
Credit Hour(s): 3
Revision Date: Spring
2008
Academic
x Vocational
The study of the basic concepts of accounting for a
firm's internal information needs used in planning, controlling, and managing
the organization.
Financial Accounting I or the equivalent.
Managerial Accounting, 12th Ed., Ray H. Garrison,
Eric W. Noreen, Peter C. Brewer, McGraw-Hill/Irwin, 2008.
Current accounting journals.
COURSE OUTCOMES/COMPETENCIES(as Required)
At the end of this course, a student should be able to
do the following:
OUTCOME 1. Discuss the work of the management
accountant.
Competencies:
1. Define management's role in an
organization.
2. Describe the accountant's role in the organization.
3.
Distinguish between financial and managerial accounting.
4.
Explain the basic characteristics of just-in-time (JIT).
5.
Describe the total quality management (TQM) approach to
continuous improvement.
6.
Discuss the impact of international competition on
businesses and on managerial accounting.
7.
Describe the role the controller plays in a
decentralized organization.
8.
Explain the importance of ethical standards in an
advanced market economy.
OUTCOME 2: Define
and classify costs into basic categories.
Competencies:
9.
Identify and give examples of each of the three basic
cost elements involved in the manufacture of a product.
10.
Distinguish between product and period costs and give
examples of each.
11.
Prepare a schedule of cost of goods manufactured in good
form.
12.
Explain the flow of direct materials cost, direct labor
cost, and manufacturing overhead cost from the point of incurrence to sale of
the completed product.
13.
Identify and give examples of variable costs and fixed
costs, and explain the difference in their behavior.
14.
Define and give examples of direct and indirect costs.
15.
Define and give examples of differential costs,
opportunity costs, and sunk costs.
16.
Distinguish between process costing and job-order
costing and identify companies that would use each costing method.
OUTCOME 3: Use a
job order costing system.
Competencies:
17.
Identify the documents used in a job-order costing
system.
18.
Compute predetermined overhead rates and explain why
estimated overhead costs (rather than actual overhead costs) are used in the costing
process.
19.
Prepare journal entries to record costs.
20.
Apply overhead cost to Work in Process using a
predetermined rate.
21.
Prepare T-accounts to show the flow of costs.
22.
Prepare schedules of cost of goods manufactured and cost
of goods sold.
OUTCOME 4: Use a
process costing system.
Competencies:
23.
Prepare journal entries to record the flow of materials,
labor, and overhead through a process costing system.
24.
Compute the equivalent units of production for a period
by the weighted-average method.
25.
Prepare a quantity schedule.
26.
Compute costs per equivalent unit.
27.
Prepare a cost reconciliation.
OUTCOME
5: Explain common cost behavior patterns
and apply them to cost prediction.
Competencies:
28.
Estimate costs using the scattergraph, high‑low,
and simple regression analysis approaches.
29.
Prepare a contribution margin format income statement
and explain its use.
OUTCOME 6: Use
cost-volume-profit analysis in decision-making.
Competencies:
30.
Compute the contribution margin ratio (CM ratio) and use
it to compute changes in contribution margin and net income.
31.
Use cost‑volume‑profit analysis to compute
break‑even point, to determine expected profits, and to determine needed
units of sale for desired profit levels.
32.
Calculate the margin of safety and explain its use.
33.
Graph cost, volume, and profit data to analyze break‑even,
profit, and loss.
OUTCOME
7: Discuss absorption vs. variable
costing.
Competencies:
34.
Prepare income statements using both variable and
absorption costing, and reconcile the two net income figures.
35.
Explain the advantages and limitations of both the
variable and absorption costing methods.
OUTCOME
8: Discuss activity-based costing (ABC).
Competencies:
36.
Explain the major differences between activity-based
costing and a traditional costing system.
37.
Apply activity-based costing in simple situations.
OUTCOME
9: Demonstrate knowledge of the
budgeting process.
Competencies:
38.
Understand why organizations budget and the processes
they use to create budgets.
39.
List the components of a master budget and explain their
interrelationship.
OUTCOME
10: Explain the use of a standard
costing system as a means of control.
Competencies:
40.
Explain how direct materials standards and direct labor
standards are set.
41.
Compute the direct materials price and quantity
variances and explain their significance.
42.
Compute the direct labor rate and efficiency variances
and explain their significance.
43.
Compute the variable manufacturing overhead spending and
efficiency variances.
44.
Prepare a flexible budget.
45.
Explain the advantages of the flexible budget approach
over the static budget approach.
46.
Compute and interpret the fixed overhead budget and
volume variances.
OUTCOME 11:
Compute and analyze other measures used for control and decision making
in an organization.
Competencies:
47.
Differentiate between cost centers, profit centers, and
investments centers, and explain how performance is measured in each.
48.
Compute return on investment.
49.
Compute residual income.
50.
Distinguish between relevant and irrelevant costs in
decisions.
51.
Use relevant costs for decision-making.
52.
Discuss the net present value method of capital
budgeting analysis.
I. Managerial
Accounting and the Business Environment
II. The
Foundation: Cost Terms, Systems Design
and Cost Behavior
A. Cost
Terms, Concepts, and Classifications
B. Systems
Design: Job-Order Costing
C. Systems
Design: Process Costing
D. Cost
Behavior: Analysis and Use
III. The Central Theme: Planning and Control
A.
Cost-Volume-Profit Relationships
B.
Variable Costing:
A Tool for Management
C.
Activity-Based Costing:
A Tool to Aid Decision Making
D.
Profit Planning
E.
Standard Costs and the Balanced Scorecard
F. Flexible
Budgets and Overhead Analysis
G. Segment
Reporting, Profitability Analysis, and Decentralization
IV. The
Capstone: Using Cost Data in Decision
Making
A. Relevant
Costs for Decision Making
B. Capital
Budgeting Decisions
1. Discussion
of the chapters.
2. Explanation
and illustration of the basic principles presented in each chapter.
3. Use
of PowerPoint slides, the chalkboard and overhead projector to illustrate the
process of solving problems.
4. Solving
of problems by students.
5.
Group activities.
6.
Use of supplementary materials: Study guides, course web site, the Internet
1. Daily assignments will consist of
problems, questions, analyses, and quizzes.
Grading of hand‑in problems will be based upon accuracy,
completeness, and neatness. Late
assignments will result in an automatic deduction of points.
2. Some class periods will involve group
activities. Case analysis and problem
solving will be included.
3. The course grade will be determined as
follows:
Daily Assignments 25%
Exams, including the final
examination 75%
100%
4. If
an examination must be missed, the instructor should be notified in advance so
that arrangements can be made for a make‑up test.
The grading scale will be as follows:
90% ‑ 100% = A
80% ‑ 89% = B
70% ‑ 79% = C
60% ‑ 69% = D
Under 60% = F
Absences that occur due to students
participating in official college activities are excused except in those cases
where outside bodies, such as the State Board of Nursing, have requirements for
minimum class minutes for each student. Students who are excused will be given
reasonable opportunity to make up any missed work or receive substitute
assignments from the instructor and should not be penalized for the
absence. Proper procedure should be
followed in notifying faculty in advance of the student’s planned participation
in the event. Ultimately it is the
student’s responsibility to notify the instructor in advance of the planned
absence.
Unless students are participating in a
school activity or are excused
by the instructor, they are expected to attend class. If a student’s absences exceed one-hundred
(100) minutes per credit hour for the course or, in the case of
on-line or other non-traditional courses, the student is inactive for
one-eighth of the total course duration, the instructor has the right, but is
not required, to withdraw a student from the course. Once the student has been dropped for
excessive absences, the registrar’s office will send a letter to the student,
stating that he or she has been dropped.
A student may petition the chief academic officer for reinstatement by
submitting a letter stating valid reasons for the absences within one week of
the registrar’s notification. If the
student is reinstated into the class, the instructor and the registrar will be
notified.
Academic
Integrity
NCCC
expects every student to demonstrate ethical behavior with regard to academic
pursuits. Academic integrity in coursework
is a specific requirement. Definitions,
examples, and possible consequences for violations of Academic Integrity, as
well as the appeals process, can be found in the College Catalog, Student
Handbook, and/or Code of Student Conduct and Discipline.
Cell
Phone Policy
Student
cell phones and pagers must be turned off during class times. Faculty may
approve an exception for special circumstances.
Pre‑assessment
ideally begins during the advisement and enrollment process with the advisor
and/or instructor interviewing the student to determine the proper level of
placement. During the first two weeks of
a normal semester, students are observed and/or interviewed and assignments are
examined to determine needed competency development. Post‑assessment to determine gain in
competency will be measured at the end of each unit of study.
This course
is one course from the approved program in Vocational Business/Office
Education. It is taken by students in
transfer programs, students preparing for accounting and/or bookkeeping
positions, as well as other business students and business owners.
The
Business/Office Education program maintains a Board of Reference for this
vocational component. The coordinator
communicates with the Board on a regular basis concerning issues or problems
that occur and meets with the group one or two times each year.
NOTE:
Information
and statements in this document are subject to change at the discretion of
NCCC. Changes will be published in writing
and made available to students.
NOTE:
If
you are a student with a disability who may need accommodation(s) under the
Americans with Disabilities Act (ADA), please notify the Director of Advising and Counseling, Chanute Campus, Student
Union, 620-431-2820 ext 280 or the
Dean, Ottawa Campus, 785-242-2607 ext 312, as soon as possible. You will need to bring your documentation for
review in order to determine reasonable accommodations, and then we can assist
you in arranging any necessary accommodations.