Program(s): Business Accounting, Business Admin Accounting
Program Coordinator(s): Sally Mitzel
Course Leader or Contact: Alison Feierabend
Version: 18.0
Status: Approved - Under Rev (AREV)

Section I Notes: ACCG23626 and ACCG20478 together qualify for exemption toward the CGA course of study with a grade of "B" or better. This course is taught in a mobile computing environment.

Detailed Description
This course is a continuation of managerial accounting with an emphasis on cost control and analysis of internal accounting data to plan for future operations and to evaluate past performance.

Program Context

 Critical Performance:

By the end of this course, students will have demonstrated the 
ability to use managerial accounting reports and analytical tools to 
plan, control and evaluate an organization.  
   
Learning Outcomes:

To achieve the critical performance, students will have demonstrated 
the ability to: 
 
1. Develop a product's cost by determining the amount of direct 
   material, direct labour and manufacturing overhead to apply to a  
   unit of product.

2. Prepare a formal departmental production report applying 
   appropriate costing techniques in a process costing system.

3. Prepare the journal entries required to record inventory flow in a 
   process cost system.

4. Use activity based costing as a tool to aid decision making.

5. Compare product cost per unit under the traditional vs. activity 
   based costing approach.

6. Allocate service department costs using either the step or direct 
   method.

7. Allocate variable and fixed costs at both the beginning and end of 
   a period and charge any over (under) run to the correct department.

8. Use cost and revenue variances as a tool for improved decision 
   making and evaluation of key personnel.

9. Create a flexible budget and develop an overhead performance 
   report for use in directing and controlling a corporation.

10.Identify relevant costs and develop decision making models that 
   can be used to support recommendations made to the management  
   team  to improve overall profitability of a company.

11.Analyze the various costs of quality.

Online Assignments & Activities*     20%
Midterm Exam - Modules 1, 2 and 3    40%
Final Exam - Comprehensive           40%
                                    100%

*Includes in-class assignments.

"Managerial Accounting", Garrison, Chesley, Carroll, Webb & Libby
9th Canadian Edition, McGraw-Hill Ryerson

Students will be required to use Connect.  It is included with new 
copies of the textbook.  Connect also includes an e-book so 
purchasing a hard copy of the textbook is optional.  Connect can be 
purchased separately directly from the McGraw-Hill website.

Module 1: Systems Design - Process Costing
- Compare and contrast job order and process costing.
- Prepare process cost flow journal entries.
- Compute equivalent units of production using either the weighted
  average or FIFO method.
- Prepare a production report using the weighted average or FIFO 
  method.
- Assignments

Reference:  Chapter 4, Appendix 4A

Module 2: Service Department Costing: An Activity Approach
- Allocate service department costs using various methods
- Assignments

Reference: Appendix 4B

Module 3: Activity-Based Costing: A Tool to Aid Decision Making
- Assign cost to cost pools using a first-stage allocation.
- Assign costs using a second-stage allocation.
- Compare product cost per unit using traditional and activity-based
  costing methods.
- Assignments

- Reference: Chapter 5

Mid-term Exam (40%) - Chapter 4, Appendix 4A, Appendix 4B and Chapter 
5 (Modules 1, 2 & 3)

Module 4: Standard Costs 
- Apply management by exception
- Setting standard costs
- Explain the significance of denominator in determining standard cost
- Assignments

Reference: Chapter 10 (pages 405-411)

Module 5: Variance analysis and overhead performance reports 
- Use the general model for variance analysis
- Use standard costs to determine: direct material variances, direct 
  labour variance, variable overhead variances
- Compute and interpret fixed overhead budget and volume variances
- Prepare an overhead performance report
- Prepare journal entries to record standard costs and variances
- Assignments

Reference: Chapter 10 (pages 412-433), and Appendix 10A and Appendix 
10B

Module 6: Flexible Budgets
- Create a flexible budget
- Determine appropriate measures of activity
- Describe how variable and fixed cost behaviours affect the flexible
  budget
- Prepare an overhead performance report
- Assignments

Reference: Chapter 9 (pages 369-373) 

Module 7: Reporting for Control
- Calculate and interpret revenue variances
- Analyze costs of quality
- Assignments

Reference: Chapter 11 (pages 507-514), Appendix 11A

Module 8: Relevant Costs for Decision Making
- Describe how various cost concepts are used in decision making
- Identify costs as relevant or not relevant
- Use the differential approach for decision making
- Perform an analysis to determine if a product should be dropped
- Perform an analysis to determine if a product line should be
  purchased or made
- Perform an analysis to determine if a special order should be
  accepted
- Perform an analysis to determine how to best utilize a constrained
  resource
- Perform an analysis to determine if a joint product should be sold
  or processed further
- Assignments

Reference: Chapter 12

Final Exam (40%) - Comprehensive