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FMGT 7221 - Manufacturing Cost Accounting

Financial Management Part-time Studies Course

School of Business

Course Details

Students will learn how to use a variety of systems to account for manufacturing costs. They will also learn how accounting information can be used in planning operations, controlling activities and making decisions in a manufacturing organization.

Prerequisite(s)

TMGT 7122

Credits

3.0

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Learning Outcomes

Upon successful completion, the student will be able to:

  • Describe the purposes for which the manager needs accounting information.
  • Identify and give examples of cost types and classifications according to differing management needs.
  • Distinguish between process costing and job-order costing and identify companies that would use each costing method.
  • Compute and apply predetermined overhead rates.
  • Use a job-order costing system.
  • Use both the weighted average and FIFO methods of process costing.
  • Identify examples of variable and fixed costs and explain the effect of a change in activity on both total costs and unit costs.
  • Analyse a mixed cost by the high-low method and the least-squares method.
  • Prepare an income statement using the contribution format.
  • Compute the breakeven point and use CVP formulas to determine the activity level needed to achieve a desired target net profit figure.
  • Prepare income statements using both variable and absorption costing and reconcile the two net income figures.
  • Prepare all the components of a master budget.
  • Explain how flexible manufacturing systems and just-in-time purchasing and production affect cost accounting systems.
  • Compute variances from standard cost and explain their significance.
  • Prepare performance reports incorporating flexible budgets.
  • Prepare a segmented income statement using the contribution format, and explain the difference between traceable fixed costs and common fixed costs.
  • Compute the return on investment and residual income.
  • Identify three ways that transfer prices can be set and use the transfer pricing formula to compute an appropriate transfer price between segments.
  • Prepare an analysis showing whether a product line or other organizational segment should be dropped or retained.
  • Prepare a make or buy analysis.
  • Make appropriate computations to determine the most profitable utilization of scarce resources.
  • Prepare an analysis showing whether joint products should be sold at the slit-off point or processed further.
  • Determine the acceptability of an investment project using the net present value method and the internal rate of return method.

Effective as of Fall 2003

Related Programs

FMGT 7221 is offered as a part of the following programs:

School of Energy

  1. Manufacturing
    Part-time   Bachelor of Technology

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