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FMGT 5210 - Managerial Accounting

Financial Management Part-time Studies Course

School of Business

Course Details

This course has been designed to give non-accounting students an appreciation of the uses and limitations of cost and managerial accounting in the decision-making processes of an organization. Emphasis will be placed on identifying the relevance of this discipline to other functional areas; capital budgeting, production planning, cost analysis and minimization, contribution maximization, and performance measurement. Concepts will be related to both manufacturing and knowledge-based, service business environments. Students will apply a variety of analytical techniques to financial and operational data to support management decisions.


FMGT 5110



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Learning Outcomes

Upon successful completion, the student will be able to:

  • Differentiate between direct and indirect costs.
  • Examine cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.
  • Distinguish between process costing and job-order costing and compare appropriate applications of these costing methods.
  • Compute predetermined overhead rates and apply them to the costing process.
  • Evaluate how fixed and variable costs behave and use them to predict costs.
  • Analyze a mixed cost using the least-squares regression method.
  • Calculate the contribution margin ratio (CM ratio) and compute changes in contribution margin and net operating income resulting from changes in sales volume.
  • Compute the degree of operating leverage at a particular level of sales and analyze how the degree of operating leverage can be used to predict changes in net operating income.
  • Compare how activity-based costing differs from a traditional costing system.
  • Generate a master budget.
  • Construct a flexible budget and compare the advantages of the flexible budget approach over the static budget approach.
  • Design a performance report for both variable and fixed overhead costs using the flexible budget approach.
  • Differentiate among cost, revenue, profit, and investment centres and outline how performance is measured in each.
  • Compute the residual income and assess the strengths and weaknesses of this method of measuring performance.
  • Distinguish between relevant and irrelevant costs in decisions.
  • Generate a make-or-buy analysis.
  • Rank investment projects in order of preference.

Effective as of Fall 2014

Programs and courses are subject to change without notice.

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