Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Effective term: Fall 2000
Professor: Multiple Professors
Textbook(s): see Topical Outline
Applicable student group(s): N/A
Course Details:COURSE LEARNING OUTCOMES:
Learning outcomes identify the critical
performances, and the knowledge, skills and
attitudes that successful students will have
reliably demonstrated through the learning
experience and evaluation in the course.
Knowledge:
Successful students will have demonstrated
knowledge of:
-the roles and functions of both managerial and
financial accounting in a business organization
-the basic set of financial statements, prepared
by and used in a business enterprise financial
ratios
-compound interest and its affect on the
time-value of money
-the various categories and classifications of
costs and how they vary with changes in business
activity
-break-even analysis
-various methods and techniques used to identify,
measure and analyze cost behaviours
-product costing
-variable and absorption costing concepts and
techniques
-activity-based costing concepts
-just-in-time inventory controls and
manufacturing systems
-linkage between planning and budgeting
-types of budgets, ie, flexible, static, capital,
master, operating and financial budgets, and the
components and construction of each
-budgetary variances and analyses
-concepts of standard costing and related
variances
-responsibility accounting, and cost, revenue and
investment centres
-management control systems in both centralized
and decentralized organizations and related
measures of performance
-strategic business units and segmented financial
reporting
-financial evaluation techniques for business
units, eg, return on investment and residual
income
-job order and process costing systems
-techniques to evaluate the feasibility of
capital investment opportunities
-cost of capital for business enterprise
Skills:
Successful students will have demonstrated further
development in their abilities to:
-calculate and evaluate financial ratios
-evaluate and criticize the financial results of a
business over time, and in comparison to industry
averages
-assess the liquidity, profitability, growth,
efficiency and stability of a business
enterprise, through the analysis of its financial
statements
-calculate break-even volumes in both units and
dollars
-calculate the sales volumes necessary to achieve
a desired level of profitability
-calculate the fixed and variable components of
mixed costs
-construct income statements using both variable
and absorption costing techniques, and reconcile
any difference in income
-identify and articulate the advantages of
budgeting
-construct a master budget and all related
supporting budgets, forecasts and schedules
-construct a flexible budget based on various
sales volumes
-compute both flexible and static budget variances
-evaluate performance by analyzing the variances
between budgeted and actual results
-prepare and interpret segmented income statements
for the strategic business units of a business
enterprise
-compute intracompany transfer prices based on
cost, market or negotiated pricing concepts
-evaluate the financial performance of a business
segment by computing return on investment and
residual income
-distinguish between job order and process costing
-compute and apply normalized manufacturing
overhead rates for product costing
-calculate and properly account for any under or
over applied manufacturing overhead at the end of
an accounting period
-compute equivalent units in process costing
systems
-calculate the net present values and internal
rates of return of completing investment
opportunities and prioritize capital expenditures
accordingly
-compute and interpret the payback periods and
accounting rates of return in the evaluation of
competing capital investment opportunities
-calculate the weighted average cost of capital
for a business enterprise
Attitudes:
Successful students will have demonstrated
attitudes of:
-an appreciation of accounting as the language of
business
-confidence to think critically to analyze and
solve problems
-an appreciation of how financial decisions may be
influenced by performance evaluation and reward
policies and structures
-a willingness to forecast and budget under
conditions of uncertainty
-an appreciation of how the motivation,
performance and evaluation of employees can be
facilitated and enhanced by the quantification of
objectives and goals
-confidence to interface proficiently with
accounting and financial staff members in a
business organization
-Responsibility, as demonstrated by behaviours
such as attending, participating and learning in
the classroom and home study
-Responsibility in meeting test due dates
Required Text:
Managerial Accounting, 4th Edition, Canadian
Garrison, Noreen, Chesley, Carroll
McGraw-Hill Ryerson, 1999
References:
Fundamental Accounting Principles, 6th Edition,
Irwin, IL, 1990 Larson, K.D., M. Zin, M. Nelson
Management Accounting, 3rd Edition, Canadian
Edition Hrongren, C.T. Sundem G.L. Stratton, O.S.
and Teal, H.D. Prentice-Hall Canada Inc.,
Scarborough, Ont
Basic Financial Management, 4th Edition,
Prentice-Hall Inc., N.J. 1988
Scott, D.F., J.D. Martin, J.W. Petty, A.J. Keown
TOPICAL OUTLINE
UNIT TOPIC
1 Managerial Accounting and the Business
Environment (Chapter 1)
Financial Statement Analysis (Chapter 17)
2 Cost Terms and Concepts (Chapter 3)
Cost Behaviour: Analysis and Use
(Chapter 6)
Cost-Volume-Profit Relationships
(Chapter 7)
Variable Costing: A Tool for Management
(Chapter 8)
3 Profit Planning (Chapter 9)
Standard Costs and Operating Performance
Measures (Chapter 10)
Flexible Budgets and Overhead Analysis
(Chapter 11)
Segment Reporting, Profitability Analysis
and Decentralization (Chapter 12)
4 Relevant Costs for Decision Making
(Chapter 13)
Capital Budgeting Decisions (Chapter 14)
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