||Managerial Accounting and the Business Environment
- What Is Managerial Accounting?
- Managerial Accountants in an Organization
- Ethics in Managerial Accounting
- Measuring Costs and Benefits
- Changing Role of Managerial Accounting
- Discuss ethical standards in an organization and assess their role in the field of managerial accounting.
- Analyze how the changing business environment has led to innovations in managerial accounting.
- Compare and contrast between managerial accounting and financial accounting and assess how managerial accounting affects various management functions.
- Outline the roles and responsibilities of a managerial accountant and describe the fundamental tools and practices used in managerial accounting.
||Concepts of Cost Management Accounting for Custom Operations
- Cost Concepts: An Overview
- General Cost Classifications
- Cost Classifications on Financial Statements
- Cost Classifications for Different Purposes
- Define cost and distinguish between product costs and period costs.
- Analyze the fundamental manufacturing cost categories and diagram the flow of product costs in a manufacturing operation.
- Analyze the cost components on financial statements and prepare an income statement and a schedule of cost of goods manufactured for a manufacturer.
- Compare direct and indirect costs and distinguish between variable and fixed costs.
||Product Costing and Cost Accumulation in the Production Environment
- Product and Service Costing
- Flow of Costs in Manufacturing Firms
- Types of Product-Costing Systems
- Job-Order Cost Accumulation
- Overhead Application
- Extended Illustration of Job-Order Costing: Calculations and Journal Entries
- Financial Schedules
- Further Aspects of Overhead Application
- Discuss the role of product and service costing in manufacturing and nonmanufacturing firms.
- Diagram and explain the flow of costs through the manufacturing accounts used in product costing.
- Distinguish between job-order costing and process costing.
- Compute a predetermined overhead rate, and explain its use in job-order costing for job-shop and batch-production environments.
- Prepare journal entries to record the costs of direct material, direct labor, and manufacturing overhead in a job-order costing system.
- Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer.
- Describe the process of project costing used in service industry firms and nonprofit organizations.
||Product and Hybrid Product Costing Systems
- Comparison of Job-Order Costing and Process Costing
- Purpose of product-costing systems
- Differences in manufacturing environments
- Differences in cost accumulation
- Similarities in cost flows
- Equivalent Units in Process-Costing Systems
- Stage of completion of the work-in-process ending inventory
- Equivalent-unit calculations
- Illustration of Reporting in a Process-Cost System
- The departmental production report
- Weighted-average method
- Steps in preparing the departmental production report
- Other Issues in Process Costing
- Actual versus normal costing
- Using a cost driver other than direct labor
- A Hybrid Product-Costing System: Operation Costing for Batch Manufacturing
- List and explain the similarities and important differences between job-order and process costing.
- Prepare journal entries to record the flow of costs in a process-costing system with sequential production departments.
- Prepare a table of equivalent units under weighted-average process costing.
- Compute the cost per equivalent unit under the weighted-average method of process costing.
- Prepare a departmental production report under weighted-average process costing.
- Describe how an operation costing system accumulates and assigns the costs of direct-material and conversion activity in a batch manufacturing process.
||Activity Based Costing and Management
- Traditional Cost Management
- ABC Management
- Activity-Based Costing and Traditional Costing
- Activity-Based Costing: Key Issues
- Describe traditional volume-based costing system and compute product costs under a traditional volume-based costing system.
- Describe activity-based costing system and compute product costs under an activity-based costing system.
- Analyze how cost drivers and data collection help in addressing issues such as need for a new costing system in activity-based costing.
||Analysis of Activity, Cost Behavior and Cost Estimation
- Cost Behavior Patterns
- Analyzing Mixed Costs
- Applying Cost Behavior
- Interpret cost behavior patterns using a scattergraph plot.
- Analyze a mixed cost using high-low method and least squares regression method.
- Estimate costs after studying cost behavior patterns.
- Assess the need for contribution approach to income statements and prepare an income statement using the contribution format.
||Cost-Volume-Profit (CVP) Analysis
- Approaches to CVP Analysis
- Cost-Volume-Profit (CVP) Relationship
- CVP Analysis and Cost Management
- CVP Analysis and Cost Structure
- Graph CVP relationships.
- Compute the break-even point using the contribution-margin and equation approach.
- Apply CVP analysis to demonstrate the effect of changes in variable cost, fixed cost, and sales volume on profit.
- Analyze the impact of cost structure on profit stability and compute the degree of operating leverage at a specific sales level.
||Absorption and Variable Costing
- Product Cost and Fixed Manufacturing Overhead
- Absorption-costing income statements
- Variable-costing income statements
- Reconciliation of Absorption- and Variable-Costing Income
- No change in inventory levels
- Increase in inventory levels
- Decrease in inventory levels
- Overall Evaluation of Absorption and Variable Costing
- Throughput Costing
- Explain the accounting treatment of fixed manufacturing overhead under absorption and variable costing.
- Prepare an income statement under absorption costing.
- Prepare an income statement under variable costing.
- Reconcile reported income under absorption and variable costing.
- Explain the implications of absorption and variable costing for cost-volume-profit analysis.
- Evaluate absorption and variable costing.
- Explain the rationale behind throughput costing.
- Prepare an income statement under throughput costing.
||Profit Planning and Activity-Based Budgeting
- Framework of Budgeting
- Budgets as a Planning Tool
- Preparing the Master Budget
- Activity-Based Budgeting
- Create a diagram showing the steps taken to create a budget and describe the different types of budgets.
- Prepare different types of budgets and budget schedules for the master budget.
- Demonstrate how activity-based budgeting operates using an example and assess the need for an activity-based budgeting system.
- Describe the elements of a budgeting framework and assess the importance of budgeting in an organization.
||Operational Performance Measures: Standard Costing and Balanced Scorecard
- Setting Performance Measures
- Cost Variance Analysis
- Using Standard Costs for Evaluation
- The Balanced Scorecard
- Describe the various ways to set performance standards and assess the role of performance standards in cost management.
- Assess the significance of cost variances in setting standards.
- Compute the material price and quantity variances and the labor rate and efficiency variances and prepare journal entries to record cost variances.
- Analyze the role of a balanced scorecard in developing strategies.
||Flexible Budgeting: Managing Overhead and Support Activity Costs
- Flexible Budgets: An Overview
- Overhead Variance
- Overhead Analysis
- Activity-Based Flexible Budgets
- Create a diagram showing the components of a flexible budget and assess the importance of flexible budgeting in an organization.
- Diagram variable overhead spending and efficiency variances using graphs and compute variable overhead variances.
- Interpret variable overhead variances and prepare an overhead cost performance report and a flexible overhead budget.
- Compare and contrast activity-based flexible budgeting and traditional flexible budgeting.
||Responsibility Accounting: Quality and Environmental Cost Control
- Responsibility Accounting: An Overview
- Segment Reporting
- Segment Performance Evaluation
- Prepare performance reports for various responsibility centers and a segmented income statement.
- UDefine decentralization and discuss its advantages and disadvantages.
- Use the return on investment and residual income approaches to measure an investment center's performance.
- Explain how responsibility accounting can achieve set goals and list the responsibility centers.
||Decision Making: Relevant Costs and Benefits
- The Decision-Making Model
- Identifying Relevant Costs and Benefits
- Aspects of Decision Making
- Activity-Based Costing and Relevant Costs
- Determine the criteria that decide the relevance of a cost or a benefit and explain the concepts of sunk costs, opportunity costs, and unit costs.
- Prepare analyses of various decision categories using relevant costs and benefits.
- AAssess the importance of activity-based costing in relevant-cost analysis.
- Demonstrate the steps in the process of decision making using an example and distinguish between quantitative and qualitative analyses in decision making.
||Allocation of Support and Joint Costs
- Service Department Cost Allocation: A General Overview
- Methods of Service Department Cost Allocation
- Direct method
- Step-down method
- Reciprocal-services method (appendix)
- Dual-Cost Allocation
- Today's Advanced Manufacturing Environment
- Joint Product Cost Allocation
- Allocate service department costs using the direct method and the step-down method.
- Use the dual approach to service department cost allocation.
- Explain the difference between two-stage cost allocation with departmental overhead rates and activity-based costing (ABC).
- Allocate joint costs among joint products using each of the following techniques: physical-units method, relative-sales-value method, and net-realizable-value method.
- Describe the purposes for which joint cost allocation is useful and those for which it is not.
- Allocate service department costs using the reciprocal-services method.
- Complete a review of key content covered in this course.