This course focuses on how managers use financial data for planning, decision making, and control. It illustrates how data derived from cost accounting systems are used to make business decisions and evaluate the performance of divisions working in the fast-moving information age. Students will investigate a wide range of related topics including:
- Cost-volume-profit analysis and incremental analysis
- Cost allocation, cost drivers, and effects of under- and over-costing
- Performance evaluation and responsibility accounting
- Job-order and process cost systems
Through participation in Forum discussions and solving realistic accounting problems, students will learn to use financial reports for evaluation and analysis in decision making. Most of the assignments in this course are quantitative and require calculations in deriving numeric solutions. Some assignments include a Microsoft Excel® template for student use.
Course Learning Objectives
- Distinguish between managerial and financial accounting and between fixed and variable cost.
- Apply cost-volume-profit analysis to solve business problems.
- Apply cost allocation techniques to business situations.
- Prepare static budgets and flexible budgets.
- Perform variance analysis to assist management in performance evaluations.
- Apply capital budgeting techniques to capital investment decisions.
- Apply job-order and process cost system techniques to manufacturing companies.
- Perform financial statement analysis.
Students must have access to Microsoft Office Excel to complete this course.