ACG 2071 - MANAGERIAL ACCOUNTING
Chapters:
M1: Introduction Managerial Accounting & Job Order Cost Systems: A hypothetical printing company is used to introduce job ordering costing.
OBJECTIVE OF CHAPTER M1: After studying the chapter, the student should be able to:
1.Describe the differences between managerial & financial accounting. 2. Evaluate the roles of management accountants. 3. Define and illustrate materials, factory labor, and factory overhead costs. 4. Describe accounting systems used by manufacturing businesses. 5. Describe and prepare summary journal entries for a job order cost accounting system. 6. Use job order cost information for decision making. 7. Diagram the flow of costs for a service for a service business that uses a job order cost accounting.
M2: Process Cost Systems: Exhibits illustrate the physical flows and the cost flows for a process manufacturer.
OBJECTIVE OF CHAPTER M2: After studying the chapter, the student should be able to:
1.Distinguish between job order costing and process costing systems. 2.Explain and illustrate the physical flows and cost flows for a process manufacturer. 3. Calculate and interpret the accounting for FIFO method. 4. Prepare a cost production reports for decision making. 5. Prepare journal entries for transactions of a process manufacturer. 6. Use cost of production reports for decision making. 7. Contrast just in time processing with conventional manufacturing practices.
M3: Cost Behavior and Cost Volume Profit Analysis. This chapter describes and illustrates the behavior and analysis of cost.
OBJECTIVE OF CHAPTER M3: After studying the chapter, the student should be able to:
1. Classify costs by their behavior as variable cost, fixed costs or mixed costs. 2. Compute the contribution margin ratio, and the unit contribution margin ratio, and explain how they are useful to managers. 3. Using the unit contribution margin, determine the break even point and the volume necessary to achieve a target profit. 4. Use a cost-volume-profit chart and a profit volume chart, determine the break even point and the volume necessary to achieve a target profit. 5. Calculate the break-even point for a business selling more than one product. 6. Compute the margin of safety and the operating leverage, and explain how managers use these concepts. 7. Cost volume profit analysis.
M4: Profit Reporting for Management Analysis. This chapter describes the use of variable costing and absorption costing for cost and profitability analyses.
OBJECTIVE OF CHAPTER M4: After studying the chapter, the student should be able to:
1. Describe and illustrate income reporting under variable and absorption costing. 2. Describe and illustrate income analysis under variable costing and absorption costing. 3. Describe and illustrate management's use of variable costing, absorption costing for controlling cost, pricing products, planning production, analyzing market segments, and analyzing contribution margins.
M5: Budgeting: In addition to the basic income statement budgets and balance sheets budgets, this chapter includes discussion of the nature of budgeting and its impact on human behavior.
OBJECTIVE OF CHAPTER M5: After studying the chapter, the student should be able to:
1. Describe budgeting. 2.Describe the basic elements of the budgeting process and the two major types of budgeting. 3. Describe the master budget for a manufacturing business. 4. Describe the basic income statement budget for a manufacturing business. 5. prepare a balance sheet budgets for a manufacturing business.
M6: Performance Evaluation Using Variances from Standard Cost.
OBJECTIVE OF CHAPTER M6: After studying the chapter, the student should be able to:
1. Describe the types pf standards and how they are established for business. 2. Explain how standards are used in budgeting. 3. Calculate and interpret direct materials price and quantity variances. 4. calculate and interpret direct labor rate and time variances. 5. Calculate and interpret factory overhead controllable and volume variances. 6. Journalize the entries for recording standards in the accounts and prepare an income statement that include variances from standard. 7. Explain how standards may be used for non-manufacturing expenses. 8. Explain and provide examples of non-financial performance measures.
M7: Performance Evaluation for Decentralized Operations: This chapter includes a brief discussion of the balanced scorecard.
OBJECTIVE OF CHAPTER M7: After studying the chapter, the student should be able to:
1. List and explain the advantages and disadvantages of decentralized operations. 2. Prepare a responsibility report for a cost center. 3. Prepare a responsibility accounting reports for a profit center. 4. Compute and interpret the rate of return on investment, the residual income, and the balanced scorecard for an investment center. 5. Explain how the market price, negotiated price, and the cost price approaches to transfer pricing may be used by decentralized segments of a business.
M8: Differential Analysis and Product Pricing. Product profitability and product pricing under production bottlenecks are discussed at the end of the chapter.
OBJECTIVE OF CHAPTER M8: After studying the chapter, the student should be able to:
1. Prepare a differential analysis report for decisions involving leasing or selling equipment, discounting an unprofitable segment, manufacturing or purchasing a needed part, replacing usable fixed assets, processing further or selling an intermediate product, or accepting additional business at a special price. 2. Determine the selling price of a product, using the total cost, product cost, and variable cost concept. 3. Calculate the relative profitability of products in bottleneck production environments.
M9: Capital Investment Analysis
OBJECTIVE OF CHAPTER M9: After studying the chapter, the student should be able to:
1. Explain the nature and importance of capital investment analysis. 2. Evaluate capital investment proposals, using the following methods: average rate of return, cash payback, net present value, and internal rate of return. 3. List and describe factors that complicate capital investment analysis. 4. Diagram the capital rationing process.
OBJECTIVE OF CHAPTER 12: After studying the chapter, the student should be able to:
1. Explain why the statement of cash flow is one of the basic financial statements. 2. Summarize the types of cash flow activities reported in the statements of cash flow. 3. Prepare a statement of cash flows, using the indirect method. 4. Prepare a statement of cash flow, using the direct method. 5. Calculate and interpret the free cash flow.
Chapter 13: Bonds payable and Investments in Bonds
OBJECTIVE OF CHAPTER 13: After studying the chapter, the student should be able to:
1. Compute the potential impact of long-term borrowing on the earnings per share of a corporation. 2. Describe the characteristics of bonds. 3. Compute the present value of bonds payable. 4. Journalize entries for bonds payable. 5. Describe bond sinking funds. 6. Journalize entries for bond redemptions. 7. Journalize entries for the purchase, interest, discount and premium amortization, and the sale of bond investments. 8. Prepare a corporation balance sheet. 9. Compute and interpret the number of times interest charges earned.