Learning Outcomes

Upon successful completion, the student will be able to:

• Describe why the manager needs management accounting information.
• Identify and give examples of cost types and classifications according to differing management needs.
• Prepare a cost of goods manufactured and cost of goods schedule.
• Analyze a mixed cost, using the least-squares method.
• Calculate the effect of a change in activity on both total and unit costs.
• Prepare an income statement using the contribution margin approach.
• Distinguish between process costing and job order costing, and identify companies that would use each method.
• Compute and apply predetermined overhead rates.
• Use a job-order costing system.
• Explain the major differences between activity based costing and a traditional costing system.
• Prepare all the components of a Master Budget (with emphasis on the Cash Budget).
• Compute variances from standard cost and explain their significance.
• Prepare performance reports incorporating flexible budgets.
• Compute and evaluate relevant performance measures for controlling decentralized operations.
• Compute the breakeven point and use CVP formulae to determine the activity level needed to achieve a desired net profit figure.
• Prepare analysis and make recommendations in several typical business decision scenarios where relevant costs are at issue: whether to keep or replace old equipment, whether a product line or other organizational segment should be dropped or retained, whether a business should make-or-buy its products or components, whether a special order should be accepted, and what is the most profitable use of a constrained resource.
• Determine the acceptability of an investment project using the net present value method, and other evaluation models commonly used to assess outlays on long-term projects.

Effective as of Fall 2015