BUS 222 MANAGERIAL ACCOUNTING

Transcription

1 BUS 222 MANAGERIAL ACCOUNTING PRESENTED AND APPROVED: AUGUST 9, 2012 EFFECTIVE: FALL

2 Prefix & Number BUS 222 Course Title: Managerial Accounting Purpose of this submission: New X Change/Updated Retire If this is a change, what is being changed? Update Prefix Course Description (Check all that apply) Title Course Number Format Change Credits Prerequisite Competencies X Textbook/Reviewed Competencies-no changes needed Does this course require additional fees? X No Yes If so, please explain. Is there a similar course in the course bank? X No Yes (Please identify) Articulation: Is this course or an equivalent offered at other two and four-year universities in Arizona? No X Yes (Identify the college, subject, prefix, number and title: All Offer ASU ACC 241, ACC 256, AND ACCT 210 Is this course identified as a Writing Across the Curriculum course? No X Yes Course Textbook, Materials and Equipment Textbook(s) Current edition Title Author(s) Publisher Title Author(s) Publisher Managerial Accounting Crosson Needles Houghton Nifflin Software/ Equipment Course Assessments Description of Possible Course Assessments (Essays, multiple choice, etc.) Exams standardized for this course? Midterm Final Other (Please specify): Where can faculty members locate or access the required standardized exams for this course? (Contact Person and Location) Tests, end of chapter exercises, homework, writing project. Are exams required by the department? X No Yes If Yes, please specify: Student Outcomes: Identify the general education goals for student learning that is a component of this course. Check all that apply: Method of Assessment

3 1. Communicate effectively. a. Read and comprehend at a college level. b. Write effectively in a college setting. 2. Demonstrate effective quantitative reasoning and X problem solving skills. 3. Demonstrate effective qualitative reasoning skills. X 4. Apply effective methods of inquiry. a. Generate research paper by gathering information from varied sources, analyzing data and organizing information into a coherent structure. b. Employ the scientific method. 5. Demonstrate sensitivity to diversity a. Experience the creative products of humanity. b. Describe alternate historical, cultural, global perspectives. Office of Instruction Use only: CIP Code: ONET Code: Minimum Qualifications:

4 COURSE INFORMATION Initiator: Business Department; JIM CHILDE Date of proposal to Curriculum Sub-Committee: 8/9/12 Effective Semester/Year Fall 2013 Spring Summer Prefix & Number: BUS 222 Full Title: (100 character limit) Managerial Accounting Short Title: (30 character limit) Managerial Accounting Catalog Course Description: Three hours credit. This course is intended for individuals who need to be able to read, understand, and use accounting information for making managerial decisions. Emphasis is on managerial and cost accounting for internal decision making, including cost-volume-profit analysis and budgeting procedures. Elements of cost (materials, labor, overhead), product costing procedures (job order, process, standard, activity based, Just-in-time), and variance analysis are studied. Managerial problems that depend upon accounting for adequate solutions are evaluated. These include but are not limited to capital investment, pricing, short-run decisions, and performance measurement and evaluation. SUN Course Number: ACC 2202 Credit Hours: 3 Lecture Hours: 3 Lab Hours: Prerequisite(s) Appropriate score on assessment test or successful completion of BUS 221 or permission of academic chair. Co-requisite(s) Intended Course Goals By the end of the semester, students will be able to: 1. Analyze the fundamentals of management accounting. 2. Compare and contrast the various information systems for management accounting. 3. Perform computations and prepare reports for managerial decision-making. 4. Discuss management s tools that provide information and analysis for planning and control. 5. Evaluate the information and analysis used for management decision-making.

5 Course Competencies and Objectives By the end of the semester, students will be able to: Competency 1 Analyze the fundamentals of management accounting Objective 1.1 Distinguish management accounting from financial accounting and explain how management accounting supports the management process. Objective 1.2Describe the value chain and its usefulness an analyzing a business. Objective 1.3 Identify the management tools used for continuous improvement. Objective 1.4 Explain the balanced scorecard and its relationship to performance measures. Objective 1.5 Prepare an analysis of nonfinancial data. Objective 1.6 Identify the standards of ethical conduct for management accountants. Competency 2 Understand cost concepts and cost allocation Objective 2.1 Describe how mangers classify costs and how they use these cost classifications. Objective 2.2 Explain how managers classify costs and how they use these cost classifications. Objective 2.3 Compare how service, retail, and manufacturing organizations report costs on their financial statements and how they account for inventories. Objective 2.4 Describe the flow of costs through a manufacturer s inventory accounts. Objective 2.5 Define product unit cost and compute the unit cost of a product or service. Objective 2.6 Define cost allocation and explain how cost objects, cost pools, and cost drivers are used to assign overhead costs. Objective 2.7 Using the traditional method of allocating overhead costs, calculate product or service unit cost. Objective 2.8 Using activity-based costing to assign overhead costs, calculate product or service unit cost. Competency 3 Compare and contrast the various cost systems of management accounting Objective 3.1 Discuss the role that information about costs plays in the management process, and explain why unit cost is important. Objective 3.2 Distinguish between the two basic types of product costing systems, and identify the information that each provides. Objective 3.3 Explain the cost flow in a manufacturer s job ordering system. Objective 3.4 Prepare a job order cost card, and compute a job order s product unit cost. Objective 3.5 Apply a job order costing to a service organization. Objective 3.6 Distinguish between job order costing and project costing. Competency 4 Evaluate job order costing Objective 4.1 Describe the process costing system, identify the reasons for its use, and discuss its role in the management process. Objective 4.2 Relate the patterns of product flows to the cost flow methods in a process costing environment. Objective 4.3 Explain the role of the Work in Process Inventory accounts in a process costing system. Objective 4.4 Define equivalent production, and compute equivalent units. Objective 4.5 Prepare a process cost report using FIFO costing method. Objective 4.6 Prepare a process cost report using the average costing method. Objective 4.7 Evaluate operating performance using information about product cost. Competency 5 Creating value for customers through ABM and JIT Objective 5.1 Explain the role of managers in activity-based systems. Objective 5.2 Define activity-based management (ABM) and discuss the relationship to the supply chain and the value chain. Objective 5.3 Distinguish between value-adding and nonvalue-adding activities, and describe process value analysis. Objective 5.4 Define activity-based costing and explain how a cost hierarchy and a bill of activities are used. Objective 5.5 Define just-in-time (JIT) operating philosophy and identify the elements of a JIT operating environment. Objective 5.6 Identify the changes in product costing that result when a firm adopts a JIT operating environment. Objective 5.7 Define and apply backflush costing, and compare the cost flows in tradition and backflush costing. Objective 5.8 Compare ABM and JIT as activity-based systems. Competency 6 Discuss management s tools that provide information and analysis for planning and control. Objective 6.1 Define cost behavior and explain how managers use this concept. Objective 6.2 Identify variable, fixed, and mixed costs, and separate mixed costs into their variable and fixed components.

6 Objective 6.3 Define cost-volume-profit (C-V-P) analysis and discuss how managers use it as a tool for planning and control. Objective 6.4 Define breakeven point and use contribution margin to determine a company s breakeven point for multiple products. Objective 6.5 Use C-V-P analysis to project the profitability of products and services. Competency 7 Understand and evaluate the Budgeting Process Objective 7.1 Define budgeting, and explain management s role in the budgeting process. Objective 7.2 Identify the elements of a master budget in different types of organizations and the guidelines for preparing budgets. Objective 7.3 Prepare the operating budgets that support the financial budgets. Objective 7.4 Prepare a budgeted income statement, a cash budget, and a budgeted balance sheet. Competency 8 Evaluate and improve management performance Objective 8.1 Describe how the balanced scorecard aligns performance with organizational goals. Objective 8.2 Discuss performance measurement, and identify the issues that affect management s ability to measure performance. Objective 8.3 Define responsibility accounting, and describe the role that responsibility centers play in performance management and performance. Objective 8.4 Prepare performance reports for cost centers using flexible budgets and for profit centers using variable costing. Objective 8.5 Prepare performance reports for investment centers using the traditional measures of return on investment and residual income and the newer measure of economic value added. Objective 8.6 Explain how properly linked performance incentives and measures add value for all stakeholders in performance management and performance. Competency 9 Analyze standard costing and variance Objective 9.1 Define standard costs, and describe how mangers use these costs. Objective 9.2 Explain how standard costs are developed, and compute a standard unit cost. Objective 9.3 Prepare a flexible budget, and describe how managers use variance analysis to control costs. Objective 9.4 Compute and analyze direct materials variances. Objective 9.5 Compute and analyze direct labor variances. Objective 9.6 Compute and analyze overhead variances. Objective 9.7 Explain how variances are used to evaluate managers performance. Competency 10 Evaluate the information and analysis used for short-term decision making Objective 10.1 Describe how managers make short-term decisions. Objective 10.2 Define incremental analysis, and explain how it applies to short-run decision making. Objective 10.3 Perform incremental analysis for outsourcing decisions. Objective 10.4 Perform incremental analysis for special order decisions. Objective 10.5 Perform incremental analysis for segment profitability decisions. Objective 10.6 Perform incremental analysis for sales mix decisions involving constrained resources. Objective 10.7 Perform incremental analysis for sell or process-further decisions. Competency 11 Examine pricing decisions, including target costing and transfer pricing Objective 11.1 Identify the objectives and rules use to establish prices of goods and services, and relate pricing issues to the management process. Objective 11.2 Describe economic pricing concepts, including the auction-based pricing method used on the internet. Objective 11.3 Use cost-based pricing methods to develop prices. Objective 11.4 Describe target costing, and use the concept to analyze pricing decisions and evaluate a new product opportunity. Objective 11.5 Describe how transfer pricing is used for transferring goods and services and evaluating performance within a division or segment. Competency 12 Describe long term capital investment analysis and decision making. Objective 12.1 Define capital investment analysis, and describe its relation to management process. Objective 12.2 State the purpose of the minimum rate of return, and identify the methods used to arrive at that rate. Objective 12.3 Identify the types of projected costs and revenues used to evaluate alternatives for capital investment. Objective 12.4 Apply the concept of the time value of money. Objective 12.5 Analyze capital investment proposals using the net present value method.

7 Objective 12.6 Analyze capital investment proposals using the payback period method and the accounting rate-ofreturn method. Competency 13 Describe the importance of measurement and management of quality Objective 13.1 Describe a management information system, and explain how it enhances management decision making. Objective 13.2 Define total quality management (TQM), and identify financial and nonfinancial measures if quality. Objective 13.3 Use measures of quality to evaluate operating performance. Objective 13.4 Discuss the evolving concept of quality. Objective 13.5 Recognize the awards and organizations that promote quality. Competency 14 Discuss the allocation of internal service costs and joint product costs Objective 14.1 Discuss the allocation of internal service costs and explain its impact on decision making. Objective 14.2 Describe the two kinds of responsibility centers used in allocating service costs. Objective 14.3 Use the direct method to assign service costs. Objective 14.4 Use the step method to assign service costs. Objective 14.5 Describe the two-step method, the simultaneous equation method, the ability to pay method, and the physical measures method assigning service costs. Objective 14.6 Explain how service cost allocation relates to overhead rates. Objective 14.7 Apply allocation methods to the costs associated with joint products. Competency 15 Measure and analyze financial performance Objective 15.1 Describe the objectives, standards of comparison, sources of information, and compensation issues in measuring financial performance. Objective 15.2 Apply horizontal analysis, trend analysis, vertical analysis, and ratio analysis to financial statements. Objective 15.3 apply ratio analysis to financial statements in a comprehensive evaluation of a company s financial performance.