Program(s): Business Admin - Accounting
Program Coordinator(s): Multiple Coordinators
Course Leader or Contact: Multiple Course Leaders
Version: 8.0
Status: Approved (APPR)

Section I Notes: N/A

Detailed Description
This course emphasizes the use of accounting data by managers for internal uses, including decision making, planning and control, and non-routine planning. Topics include: relevant costs, flexible budgets and fixed overhead analysis, labour and overhead, and cost allocations. Please note: ACCG3007 and ACCG3015 together qualify for exemption toward the CGA course of study.

Program Context

 Knowledge:

- Prepare and process costing production reports using FIFO method and 
  the Weighted Average Method.
- Calculate and allocate overhead using activity based costing 
  techniques.
- Allocate service department costs to operating departments using the 
  direct method and the step method while following allocation 
  guidelines.
- Calculate and intepret material, labour and overhead manufacturing 
  variances.
- Develop flexible budgets and apply flexible budgeting techniques to 
  performance and variance analysis.
- Utilize relevant cost data and incremental analysis in making the 
  following decisions:
     - Keep or replace equipment
     - Make or buy
     - Add or drop a segment
     - Special order
     - Constrained resource utilization
     - Sellor process further

Attitudes:

- Commitment to thorough problem analysis processes and the 
  development of creative accounting solutions.
- Responsibility, as demonstrated by behaviours such as attending,   
  participating and learning in the clasroom and home study.
- Responsibility in meeting test and assignment due dates.

Participation:

Students are expected to make a reasonable effort to attend classes 
and to get involved.  It is the students' responsibility to know where 
they are in the course and to be prepared for the upcoming class 
sessions.  The course schedule should be consulted on a regular basis. 
Absence due to special cicumstances should be discussed with the 
professor in advance wherever possible.


     Assignments/Quizzes   20%  
     Mid-Term Exam         40%
     Final Exam            40%
                          ____
                    Total 100%

The basic text required for this course will be one of the following 

"Managerial Accounting", Garrison, Noreen; Chesley, Carroll; 6th 
Canadian edition, McGraw-Hill Ryerson

Week:         1, 2, 3

Topics:       Systems Design - Process Costing
              - Comparison of Job Order & Process Costing
              - A perspective of process cost flows
              - Equivalent units of production
              - Production report - FIFO method
              - Evaluation of the two methods
              - Shrinkage and cost units

Reading       Chapter 4
Strategies:

Skills        Analytical and critical thinking skills applied in 
Emphasized:   classroom discussions
______________________________________________________________________

Week:         4 & 5

Topics:       Activity Based Costing:  A Tool to Aid Decision Making

Reading       Chapter 8
Strategies:

Skills        - Critical thinking
Emphasized:   - Mathematical and problem solving skills
______________________________________________________________________

Week:         6

Topics:       Overhead
              Predetermined Rates
              - Bases
              - Allocation

Reading      Appendix A
Service Department Costing:  An Activity Approach
Strategies:

Skills      - Critical thinking
Emphasized: - Mathematical and problem solving skills
______________________________________________________________________

Week:       7    

Topics:     MID-TERM EXAM
______________________________________________________________________

Week:       8, 9       

Topics:     Standard Costs and the Balanced Scorecard
            - Management by exception
            - Setting standard costs
            - A general model for variance analysis
            - Using standard costs
              - Direct materials
              - Direct labour
              - Variable overhead

Reading       Chapter 10
Strategies:

Skills:       Mathematical skills developed in solving problems
______________________________________________________________________

Week:         10, 11       

Topics:       Flexible Budgets & Overhead Analysis
              - Flexible budgets
              - Measure of activity
              - Variable overhead performance report 
              - Fixed costs and the flexible budget
              - Fixed overhead analysis
              - Presentation of variances on the absorption costing 
                income statement

Reading       Chapter 11       
Strategies:

Skills:       Interpersonal & leadership skills developed in group 
              work
______________________________________________________________________

Week:         12, 13       

Topics:       Relevant Costs for Decision Making
              - Cost concepts for decision making
              - Sunk costs are not relevant
              - Future costs that do not differ are not relevant
              - Adding and dropping product lines
              - Make or buy decision
              - Utilization of scarce resources
              - Joint products

Reading       Chapter 13
Strategies:

Skills:       Critical thinking & problem solving skills developed 
              using case analysis
______________________________________________________________________

Week:         14       

Topics:       FINAL EXAM
______________________________________________________________________