ACC 305 Management Accounting (3)
Information for managerial decision-making, planning, and control: job order and process costing, direct and absorption costing, normal and standard cost systems. Problem solving and application.
Pre: 202.
A minimum of at least C- or better is required
Subjects:
Part I Foundation Cost Management Concepts
- Basic cost management concepts
- Systems framework
- Cost assignment, director tracing, driver tracing and allocation
- Product and service costs
- External financial statements
- Activity drivers and cost behavior
- Traditional and contemporary cost management systems
- Activity cost behavior
- Cost behavior and the resource usage model
- Methods for separating mixed costs into fixed and variable components
- Reliability of cost formulas (multiple regression and managerial judgment)
Part II Cost Accounting Systems
- Product and service costing: overhead application and job-
order costing- Characteristics of production process
- Setting up the cost accounting system
- Overhead application: a normal costing view
- The job-order costing system
- Single vs multiple overhead rates
- Product and service costing: a process systems approach
- Process costing system
- Operational and cost concepts
- Process costing system with and without beginning work in process
- FIFO costing method
- Weighted average costing method
- Treatment of transferred-in goods
- Operating costing
- Support department cost allocation
- Objective of allocation
- Choosing a support department cost allocation method (direct, sequential and reciprocal)
- Activity-based costing
- Limitation of traditional cost accounting systems
- Activity-based product costing (activity identification and classification)
- ABC Data-base
- Strategic cost management, life cycle cost management and JIT
- Strategic cost management (competitive advantage, value--chain framework and analysis
- Life cycle cost management
- Just-in-time manufacturing and purchasing (J IT effects on cost management system)
Part III Decision Making: Traditional and Contemporary
- Cost-volume-profit analysis
- The break-even points in units and sales dollars
- Multiple-product analysis
- Changes in cost-volume-profit analysis
- Cost-volume-profit and activity-based costing
- Activity resource usage model and relevant costing: tactical decision making
- Tactical decision-making
- Relevant costs and revenues
- Relevancy, cost behavior and the activity resource usage model
- Inventory management: economic order quantity, JIT and the theory of constraints
- JIT views of inventory management
- Basic concepts of constrained optimization
- Pricing and revenue analysis
- Pricing concepts
- Cost-based pricing
- Target costing and pricing
- Prices and control, legal system and ethics in pricing
- Profitability analysis
- Measures of profit (absorption costing and variable costing approaches)
- Analysis of profit-related variances
- Profitability of segments
- Product-life cycle
- The impact of profit on behavior
Part IV Budgeting for Planning and Control
- The role of budgeting
- Preparing the operating and financial budget
- Using budget for control
Part V Management Accounting and Ethical Conduct
- Ethical behavior
- Standards of ethical conduct for management accountants
- Ethical conduct