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