ACC 202 INTRODUCTION TO MANAGERIAL ACCOUNTING
COURSE DESCRIPTION:
Introduces methods for evaluating financial performance, including cost accounting, budget, break even analysis, ratio analysis, and sources and uses of funds.
PREREQUISITES:
ACC 201, or ACC 124 and 125, or consent of instructor. By enrolling in this class, I assume you have met all prerequisites.
GENERAL COURSE OBJECTIVES:
To develop working skills with the goals and methods of generally accepted accounting principles, including partnership accounting, cash flow, present value, budgeting and responsibility accounting. Also includes manufacturing accounting and cost-volume-profit analysis, and financial statement analysis.
LEARNING OUTCOMES:
Upon completion of this course, the student should be able to:
a. Discuss the difference between the nature of a partnership and a sole proprietorship with emphasis on how equity and net income is determined.
b. Discuss the difference including the concept of inter period tax allocation.
c. Define: net of tax, marginal and average tax rates, tax avoidance and tax evasion.
d. Compute taxable income from total income for individuals and corporations.
e. State the purpose of a statement of cash flows as well as compute the cash flow from operations, investing and financing activities.
f. Compute the ratios widely used in financial statement analysis and explain the significance of each.
g. Distinguish between the fields of financial accounting and managerial accounting.
h. Explain the need for departmental information and describe a responsibility accounting system.
i. Distinguish between direct and indirect expenses and be able to compute a department's contribution to indirect expenses.
j. Describe the difference between accounting for inventories in manufacturing companies and merchandising companies. Include explanations of: product costs and period costs, goods in process and finished goods, job order cost and process cost systems.
k. Explain the meaning of fixed costs, variable costs, and contribution rate. Use all of the above in evaluating various marketing strategies.
l. Describe the benefits and elements of master budget. Prepare some of the supporting schedules used in the master budget.
m. Describe a standard cost system including the use of variance accounts.
n. Identify the financial information relevant to a business decision. Include a discussion of the relevance of opportunity cost, sunk cost, and out-of-pocket costs.
o. Evaluate a capital budgeting proposal using the payback period, return on average investment, and discounted cash flows.
p. Discuss the difference between full costing and variable costing.
q. Apply the concept of present value decisions involving bond and capital budgeting.
BOOKS AND MATERIALS:
Horngren, C.T., et al, Accounting, 5th Edition, Prentice Hall, New Jersey
Working Papers to accompany text
COURSE REQUIREMENTS:
CLASSES AND HOMEWORK:
You are responsible for reading all assignments prior to the class for which it is assigned. The problems at the end of the each chapter that are assigned are to be answered prior to coming to class. The problems will be discussed in class on the last day we spend on the chapter. The completion and understanding of the assignments are essential to do well on the exams.
EXAMINATIONS:
All exams are to be an individual's own effort. Academic dishonesty will not be tolerated and will result in a zero (0) grade for that exam. Exams must be taken when scheduled. If an emergency prevents your attendance, you must notify the instructor prior to the exam. All make up exams taken after the scheduled date will have an automatic 10 point deduction; therefore, be sure you are prepared and present for the scheduled exams.
REVIEW PROBLEM:
At the beginning of the semester you will receive a Review Problem (50 points) that involves completing a worksheet and preparing financial statements.
PROJECT:
One research project is required and will utilize the material found in Chapter 18, Financial Statement Analysis. You will be asked to select a publicly traded corporation, perform a financial analysis of the company, and make a recommendation to buy or not buy the stock based on your analysis. Specific instructions will be handed out near the middle of the semester.
EVALUATION AND GRADES:
3 exams 100 points each 300 points
Research project 100 points
Review assignment 50 points
Total 450 points
A = 90-100%, B = 80-89%, C = 70 - 79%, D =60 - 69%, F = 0 - 59%
COURSE SCHEDULE:
The schedule may change at instructor's discretion to better meet the needs of the class. It is important for you to keep up with the assignments because it is difficult to catch up once fallen behind.
1-2 Weeks Chapter 12 Partnerships
1-2 Weeks Chapter 16 Investments and International Operations
Week 3 Review Problem due
1-2 Weeks Chapter 17 Statement of Cash Flow
Week 6 Exam 1 (Chapters 12, 16, 17)
1-2 Weeks Chapter 19 Introduction to Management Accounting
1-2 Weeks Chapter 20 Job Costing
1-2 Weeks Chapter 21 Process Costing
1-2 Weeks Chapter 22 Cost-Volume-Profit Analysis
Week 12 Exam 2 (Chapters 19--22)
1-2 Weeks Chapter 23 Master Budget and Responsibility Accounting
1-2 Weeks Chapter 24 Flexible Budget and Standard Cost
1-2 Weeks Chapter 25 Activity Based Costing
Week 15 Research Project due
1-2 Weeks Chapter 26 Special Business Decisions and Capital Budgeting
Week 17 Exam 3 (Chapters 23-26)
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