ACCG20478
Cost and Managerial Accounting 2
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version   Public
 
Section I: Administrative Information
  Credit Value: 3.0
Credit Value Notes: N/A
Effective: Spring/Summer 2014
Prerequisites: (ACCG23626)
Corequisites: N/A
Equivalents:
N/A
Pre/Co/Equiv Notes: N/A

Course Name (short): Cost & Managerial Accounting 2
School:
All Sheridan Schools
Program(s): Business Accounting, Business Admin Accounting
Program Coordinator(s): Sally Mitzel
Course Leader or Contact: Alison Feierabend
Originator: Lesley Rumsby
Designate: Lesley Rumsby
Version:
18.0
Status: Approved - Under Rev (AREV)

Calendar Description
This course emphasizes the use of accounting data by managers for internal use including decision making, planning and control and non-routine planning. Topics include: relevant costs, flexible budgets, fixed overhead analysis and labour, overhead and cost allocations.

Typical Instructional Format

Mobile
42.0
Total hours: 42.0

Courses may be offered in other formats.

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.

 
 
Section II: Course Details

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

 
Business Accounting Program Coordinator: Sally Mitzel
Same Program Context as Business Admin Accounting. See above.

Business Admin Accounting Program Coordinator: Sally Mitzel
This course is a core component of the second year of the Accounting Program.


Course Critical Performance and Learning Outcomes

 
 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.

Evaluation Plan
Students demonstrate their learning in the following ways:

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

*Includes in-class assignments.
Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:

 

Essential Employability Skills
Essential Employability Skills emphasized in the course:

X Communication X Critical Thinking & Problem Solving   Interpersonal
X Numeracy X Information Management   Personal

Notes: N/A

Prior Learning Assessment and Recognition
PLAR Contact: Multiple PLA Contacts

Students may apply to receive credit by demonstrating achievement of the course learning outcomes through previous life and work experiences. This course is eligible for challenge through the following method(s):

Challenge Exam Portfolio Interview Other Not Eligible for PLAR
X        

Notes: N/A

 
 
Section III: Topical Outline
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: Spring/Summer 2014
Professor: Multiple Professors
Textbook(s):
"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.

Applicable student group(s): Business Administration - Accounting, Second Year
Course Details:
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


Academic Honesty
The principle of academic honesty requires that all work submitted for evaluation and course credit be the original, unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on work, except for group projects arranged and approved by the faculty member, or otherwise submitting work that is not the student's own violates this principle and will not be tolerated. Instances of academic dishonesty, including assisting another student to cheat, will be penalized as detailed in the Student Handbook.

Students who have any questions regarding whether or not specific circumstances involve a breach of academic honesty are advised to discuss them with the faculty member prior to submitting the assignment in question.

Discrimination and Harassment
Sheridan is committed to provide a learning environment that respects the dignity, self esteem and fair treatment of every person engaged in the learning process. Behaviour which is inconsistent with this principle will not be tolerated. Details of Sheridan's policy on Harassment and Discrimination are available in the Student Handbook.
 
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