Managerial Cost AccountingACC 233
Prerequisite: ACC 212 with a C (2.0) minimum grade. Relates principles and methods of handling materials, labor costs, and manufacturing expenses to the formulation of reports to management. Includes job order, process, standard, direct and budgetary costing procedures. (45-0)
Outcomes and Objectives
Prepare accounting information that supports manufacturing operation decision-making.
- Explain basic cost accounting concepts and procedures.
- Calculate product costs using standard, Job order, process, variable, and ABC costing methods.
- Record product cost transactions and results with various costing systems.
- Describe the use, flow of costs, and appropriate business environment for each method.
- Compare the use and results for each method.
- Explain customer and product profitability analysis.
Describe decision-making using segment reporting.
- Prepare a segmented income statement using the contribution format.
- Use the segmented income statement for decision-making.
- Compute and use ROI for decision-making.
Explain how cost behaviors affect cost management.
- Prepare CVP-analysis calculations and procedures.
- Prepare and interpret the Contribution Income Statement format.
- Describe cost behavior concepts in the larger business decision making context.
Describe the business financial planning process.
- Describe factors related to projecting business activity and predictive accounting.
- Prepare budgets for various types of entities.
- Explain the use and importance of budgets in the business planning and performance process.
Apply procedures used for controlling costs.
- Apply flexible budget processes and concepts.
- Explain the use of spending and activity cost variances in controlling cost, budgets, and forecasts.
- Calculate and interpret variances in a standard costing system.
- Explain the use of standard cost variances in controlling costs.
Interpret accounting information to support decision-making.
- Explain relevant costs.
- Apply relevant cost calculations to business decisions.
- Explain the use of financial information in the larger business decision making context.
Explain performance measurement tools in a decentralized environment.
- Describe Responsibility accounting concepts and procedures.
- Prepare calculations for measuring manufacturing processes.
Integrate managerial accounting concepts and procedures with the work of management.
- Apply managerial accounting concepts and procedures to business situations and problems.
- Use technology to prepare financial information that supports the work of management.
- Practice appropriate communication skills through written and oral presentation opportunities.
- Explain the career opportunities and certification process in management accounting.
Demonstrate the master budget and its components.
- Prepare a master budget and the components involved.
- Use the master budget to explain the importance and use of planning to manage costs in an organization.
Demonstrate overhead analysis using flexible budgets.
- Prepare a flexible budget, and explain the advantages of the flexible budget approach over the static budget approach.
- Use the flexible budget to prepare an overhead performance report containing spending variances.
- Explain how flexible budgets can be used in a company that employs activity-based costing.
- Compute and properly interpret the fixed overhead budget and volume variances.
- Explain how variances can be presented on the income statement for management's use.