Principles of Managerial Accounting

Course Number:
BA 213Z
Transcript Title:
Principles of Managerial Accounting
Created:
Jul 26, 2022
Updated:
Apr 25, 2024
Total Credits:
4
Lecture Hours:
40
Lecture / Lab Hours:
0
Lab Hours:
0
Satisfies Cultural Literacy requirement:
No
Satisfies General Education requirement:
No
Grading Options
A-F, P/NP, Audit
Default Grading Options
A-F
Repeats available for credit:
0
Prerequisites

BA 111 or BA 211Z

Course Description

Builds an understanding of the role of managerial accounting in a business, focusing on the development and use of information to evaluate production costs and operational performance in support of short- and long-term organizational decision-making. Prerequisite: BA 111 or BA 211Z. Audit available.

 

Course Outcomes

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

  1. Explain the role of managerial accounting in an organization with respect to planning and control decisions.
  2. Apply absorption and variable costing methods to determine product costs.
  3. Develop and use relevant operational information to determine cost behavior patterns and conduct cost-volume-profit analyses.
  4. Use commonly accepted tools, including budgets, standard costs, and variance analysis to evaluate operational performance.
  5. Apply commonly accepted methods to evaluate capital and operational decisions.

Suggested Outcome Assessment Strategies

The determination of assessment strategies is generally left to the discretion of the instructor. Here are some strategies that you might consider when designing your course: writings (journals, self-reflections, pre writing exercises, essays), quizzes, tests, midterm and final exams, group projects, presentations (in person, videos, etc), self-assessments, experimentations, lab reports, peer critiques, responses (to texts, podcasts, videos, films, etc), student generated questions, Escape Room, interviews, and/or portfolios.

Course Activities and Design

The determination of teaching strategies used in the delivery of outcomes is generally left to the discretion of the instructor. Here are some strategies that you might consider when designing your course: lecture, small group/forum discussion, flipped classroom, dyads, oral presentation, role play, simulation scenarios, group projects, service learning projects, hands-on lab, peer review/workshops, cooperative learning (jigsaw, fishbowl), inquiry based instruction, differentiated instruction (learning centers), graphic organizers, etc.

Course Content

Outcome #1: Explain the role of managerial accounting in an organization with respect to planning and control decisions. 

  • Planning Decisions: 
    • Budgeting and Forecasting 
    • Strategic Planning 
    • Cost Analysis Capital 
    • Budgeting 
  • Control Decisions:
    • Performance Measurement
    • Variance Analysis
    • Cost Control
    • Inventory Management
    • Quality Control

Outcome #2: Apply absorption and variable costing methods to determine product costs. 

  • Steps to apply Absorption Costing (Full Costing) 
    • Identify costs 
      • Direct materials 
      • Direct labor 
      • Variable manufacturing overhead 
      • Fixed manufacturing overhead 
    • Calculate total manufacturing costs 
    • Determine total units produced 
    • Allocate fixed manufacturing overhead 
    • Calculate Cost per Unit 
  • Steps to apply Variable Costing (Direct Costing) 
    • Identify variable costs 
      • Direct materials 
      • Direct labor 
      • Variable manufacturing overhead 
    • Calculate total variable manufacturing costs 
    • Determine total units produced 
    • Calculate Variable Cost per Unit 
    • Fixed manufacturing overhead 
  • Key Differences in financial statements 
    • Impact on inventory valuation 
    • Impact on profitability

Outcome #3: Develop and use relevant operational information to determine cost behavior patterns and conduct cost-volume-profit analyses.

  • Identify cost behavior patterns 
    • Fixed costs 
    • Variable costs 
    • Mixed costs (semi-variable costs) 
  • Gather relevant operational data 
    • Historical cost data 
    • Budgets and forecasts 
  • Conduct Cost-Volume-Profit (CVP) analysis 
    • Calculate Contribution Margin
    •  Determine Break-Even Point (BEP) 
      • BEP (in units) = Fixed costs / Contribution margin per unit 
      • BEP (in dollars) = Fixed costs / Contribution margin ratio 
    • Analyze profitability at different activity levels 
    • Evaluate sensitivity to changes 
  • Use relevant information for decision-making 
    • Product pricing 
    • Production planning 
    • Sales mix decisions 
    • Cost control measures 
    • Financial forecasting and budgeting

Outcome #4: Use commonly accepted tools, including budgets, standard costs, and variance analysis to evaluate operational performance. 

  • Develop and Implement Budgets 
    • Preparation 
    • Implementation
    • Monitoring 
  • Establish Standard Costs 
    • Setting Standards 
    • Usage 
  • Conduct Variance Analysis 
    • Material Variance Analysis 
    • Labor Variance Analysis 
    • Overhead Variance Analysis 
  • Evaluate Operational Performance 
    • Interpret Variances 
    • Take Corrective Actions 
    • Continuous Improvement 
  • Communicate Findings and Adjustments 
    • Reporting 
    • Feedback Loop 

Outcome #5: Apply commonly accepted methods to evaluate capital and operational decisions. 

  • For Capital Decisions 
    • Net Present Value (NPV) 
    • Internal Rate of Return (IRR) 
    • Payback Period 
    • Profitability Index (PI) 
  • For Operational Decisions 
    • Cost-Benefit Analysis 
    • Break-Even Analysis 
    • Marginal Cost Analysis 
    • Return on Investment (ROI) 
    • Scenario and Sensitivity Analysis

Suggested Texts and Materials

Accounting, 28th Ed; Warren/Reeve/Duchac; Cengage Learning