This course introduces students to the institutional culture, key developments, and analytical tools and techniques of managerial accounting. From regulatory bodies and information gathering to costing systems, budgeting, performance and financial accounting relevance, this course is designed principally for the student who seeks a career in management, yet the focus on computational tools makes it relevant to those who intend to undertake further study for a career in accounting. In order to accommodate the diversity of organizations in an increasingly global economy, examples throughout the course are based on both manufacturing and service organizations, large companies and SME (small and medium enterprises), for-profit and non-profit entities, and online and onsite business activities. Students will develop an appreciation for the importance and integrity of information collection and presentation for managerial decision making to both internal and ultimately external stakeholders.
Students will examine such key topics as:
- The rationale and expected consequences of making the transition from Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS)
- The structure and behavior of costs; a costing systems taxonomy: job-order costing, process costing, activity-based costing
- Operating budgeting and capital budgeting
- Making decisions using managerial accounting information for performance and pricing
- The relevance of managerial accounting functions to financial accounting and reporting; extensions to sustainability and forensic accounting
The course project, Final Report: Analysis of Managerial Accounting Issues, focuses students' attention on the relationship between the internal operations and the external business environment, and how they can be analyzed using tools of managerial accounting. Moreover, students will examine a challenge and propose a solution using managerial accounting practices.
Course Learning Objectives
- Conduct an analysis of the myriad ways in which an organization applies principles of managerial accounting.
- Measure and evaluate how managerial accounting solves real-world dilemmas for a given organization.
- Critique an organization's governance and oversight, as a prerequisite to examining an operational issue that affects or is affected by the managerial accounting function.
- Explain the structure of an organization's costs and how they behave; and in turn, use this information to conduct a cost-volume-profit analysis.
- Compute costs based on the activity-based costing approach, the job-order costing system and the process-costing system; then compare and contrast all three costing techniques.
- Compile a master budget, including operating and/or capital budgets, while illustrating the relevance of a chosen costing technique.
- Apply managerial accounting methods and price setting to management decisions about employee performance measurements and employee incentives.
- Synthesize course content in explaining a current event or topical application with direct managerial accounting relevance to the organization.