Detailed Description
Students examine the reports, statements and analytical tools used
by management, and the manner in which these are applied in planning,
controlling, decision-making and performance evaluation.
The key areas covered include cost accounting fundamentals, job and
process costing, cost-volume-profit analysis, budgeting and control,
inventory costing, and information for management control and
decision analysis. A combination of interactive lectures, problem
solving activities and case study analysis will be used to aid
students in understanding the concepts and practices used in the
field of managerial accounting.
Program Context
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Bach Bus Admin Market Manage |
Program Coordinator: Anne-Liisa Longmore |
Same as Accounting.
Bach Business Admin Accounting |
Program Coordinator: Anne-Liisa Longmore |
This required core course
provides a foundation for
higher level courses that
use both quantitative and
qualitative information for
understanding the financial
and operational performance
of an organization. The
outcomes and learning
experiences of these course
components will contribute
to the students' Creative
Learning Portfolio. This
course is designed to meet
the requirements of
professional accounting
programs of study.
Bach Business Admin Finance |
Program Coordinator: Anne-Liisa Longmore |
Same as Accounting.
Bach Human Resources |
Program Coordinator: Anne-Liisa Longmore |
Same as Accounting.
BachBus Admin Spply Chain Mgmt |
Program Coordinator: Anne-Liisa Longmore |
Same as Accounting.
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Course Critical Performance and Learning Outcomes
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Critical Performance:
By the end of this course, students will have demonstrated the ability
to create internal reports and provide information for managerial
decision making through the application of management accounting tools
and techniques.
Learning Outcomes:
To achieve the critical performance, students will have demonstrated
the ability to:
1. Discuss the role of management accounting in achieving an
Organization's strategic focus.
2. Apply cost accounting terminology, concepts and procedures used
to facilitate planning and decision making.
3. Evaluate management information to determine the unit cost of a
product (or service) and to make appropriate pricing decisions.
4. Assess cost systems to determine an appropriate system (job order
costing, process costing, activity-based costing, standard
costing) for specific industries.
5. Analyze a company's cost-volume-profit relationships to evaluate
affects of change on the company's overall financial position.
6. Evaluate make or buy decisions, special orders and constrained
resources using relevant cost information for decision making.
7. Design transfer pricing options that motivate all parties of the
transaction.
8. Analyze variances within costing systems to evaluate performance.
9. Create master budgets that support an organization¿s strategies.
10. Design a system for an organization using responsibility
accounting.
11. Demonstrate professional behaviours including:
a. Work effectively in teams.
b. Meet due dates.
c. Produce professional quality assignments.
d. Use reference materials responsibly.
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Evaluation Plan
Students demonstrate their learning in the following ways:
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Students demonstrate their learning in the following ways:
In addition to achieving a minimum 50% overall grade, a student must
have a combined average of at least 50% on the non-group components
of the evaluation plan in order to receive credit for this course.
In-class online quizzes (5 x 2%) 10%
Assignments (5 x 5%)* 25%
Midterm Exam (Module 1-5) 30%
Final Exam (Module 1-10) 35%
Total 100%
Assignments are group activities based on case analysis and problem
solving. All other evaluations are done individually.
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Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:
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Essential Employability
Skills
Essential Employability Skills emphasized in the course:
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Communication
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Critical Thinking & Problem Solving
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Interpersonal
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Numeracy |
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Information
Management |
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Personal
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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 |
X |
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Notes: Students must successfully complete a challenge exam and provide a
portfolio demonstrating relevant life and work experience specific to
this course.
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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 2014
Professor: Multiple Professors
Textbook(s): Garrison, Chesley, Carroll and Webb (2015) Managerial Accounting.
(10th Cdn. ed.) Toronto (Ontario): McGraw-Hill Ryerson.
Applicable student group(s): Bachelor of Business Administration
Course Details:Note: Learning Outcome 11 will be inherent and apparent within each
evaluation.
Module 1: Basic Concepts of Management Accounting, Costs and Cost
Flows
1. Compare and contrast financial and managerial accounting
2. Describe the planning and control cycle and explain its
relationship to decision making
3. Explain basic process management concepts
4. Classify costs in various ways (variable vs. fixed, period
vs. product, prime, conversion, opportunity, relevant, direct vs.
indirect, sunk)
5. Trace the flow of costs within a manufacturing environment
6. Compare and contrast the preparation of an income statement
for merchandising and manufacturing companies
7. Prepare a schedule of cost of goods sold and cost of goods
manufactured
Reference: Chapters 1 and 2
Learning Outcomes: 1, 2
Module 2: Cost Behaviour and C-V-P Analysis
1. Understand cost behaviour patterns and their relevance to
decision making
2. Understand the assumptions underlying different cost
estimation approaches
3. Estimate costs using the high-low, and account analysis
methods
4. Understand the underlying assumptions, limitations and
information requirements of C-V-P ANALYSIS
5. Prepare and interpret single and multiple-product C-V-P
analysis
6. Interpret C-V-P graphs
7. Prepare and interpret break-even analysis calculations with
changing variables
8. Prepare and interpret contribution margin analysis
Reference: Chapters 3 and 4
Learning Outcomes: 2, 3, 5
Assessment: Quiz #1 (2%)
Module 3: Job Order Costing
1. Trace the flow of costs in a job order costing environment
using job cost cards, journal entries and t-accounts
2. Apply direct materials, direct labour and manufacturing
overhead in a job order costing environment to various types of
jobs
Reference: Chapter 5
Learning Outcomes: 2, 3, 4
Assessment: Assignment #1 (5%)
Module 4: Process Costing
1. Trace the flow of costs in a process costing environment
using production cost reports, journal entries and t-accounts
2. Apply direct materials, direct labour and manufacturing
overhead in a process costing environment using the weighted
average method
3. Apply direct materials, direct labour and manufacturing
overhead in a process costing environment using the FIFO method
Reference: Chapter 6 and Appendix 6A
Learning Outcomes: 2, 3, 4
Assessment: Quiz #2 (2%)
Module 5: Activity-Based Costing and Service Department Cost
Allocations
1. Understand the pros and cons of activity-based costing and
its applications
2. Compare and contrast the application of traditional costing
and activity-based costing
3. Perform service department cost allocation using the
direct, step and reciprocal methods
4. Use the results of service department cost allocations to
calculate and use predetermined overhead rates
Reference: Chapter 7 and Appendix 11A
Learning Outcomes: 2, 3, 4
Assessment: Assignment #2 (5%)
Assessment: Mid-term exam - Modules 1 through 5 (30%)
Module 6: Absorption and Variable Costing and Budgeting
1. Calculate and compare the cost of a product using variable
or direct versus full or absorption costing
2. Compare and interpret income statements prepared using
variable or direct versus full or absorption costing
3. Understand the framework and objectives of budgeting
4. Understand the budgeting process including functions,
relationships, components, time frame and techniques
5. Explain the difference between forecasts, pro forma and budgets.
6. Prepare a master budget, pro forma financial statements and its
components (sales, production, materials, labour and inventory,
overhead and administration, cash, etc.)
Reference: Chapters 8 and 9
Learning Outcomes: 2, 3, 9
Assessment: Quiz #3 (2%)
Module 7: Standard Costs for Materials, Labour and Variable Overhead
1. Understand the differences between actual, normal, and
standard costing systems and their application
2. Establish standard costs for materials and labour
3. Compute variable cost variances: price/rate, efficiency,
spending, mix, yield and quantity
4. Understand and interpret favourable and unfavourable
variable manufacturing costs variance analysis.
Reference: Chapter 10, Appendix 10A and Appendix 10B
Learning Outcomes: 2, 3, 4, 8
Assessment: Assignment #3 (5%)
Module 8: Fixed Overhead Analysis and Reporting for Control
1. Compute fixed cost variances: budget, denominator and volume
2. Understand and interpret favourable and unfavourable fixed
overhead costs variance analysis
3. Compute sales variances: price, mix, volume, quantity,
market share and market size
4. Understand and interpret favourable and unfavourable sales
variance analysis
5. Describe responsibility accounting
6. Describe types of responsibility centres (revenue, cost,
profit and investment)and basic behavioural implications of each
7. Evaluate the controllability of different types of
responsibility accounting systems
8. Prepare and interpret responsibility accounting systems
performance reports
Reference: Chapter 10, Appendix 10C and Chapter 11
Learning Outcomes: 2, 3, 8
Assessment: Assignment #4 (5%)
Assessment: Quiz #4 (2%)
Module 9: Relevant Costs for Decision-Making
1. Understand the difference between relevant and non-relevant
costs for decision making
2. Perform relevant costing analysis to make business decisions:
make or buy (outsourcing), special order, basic sell or process
further, add or drop a product/service/department/customer
utilization of constrained resources
Reference: Chapter 12
Learning Outcomes: 2, 3, 6, 7
Assessment: Assignment #5 (5%)
Module 10: Pricing and Trends in Management Accounting
1. Describe the objectives of transfer pricing
2. Understand the advantages, disadvantages, behavioural
implications and consideration of transfer pricing policies when
selecting an appropriate transfer pricing method (market price,
variable cost, full cost, negotiated)
3. Calculate transfer prices using the appropriate transfer pricing
method
4. Describe the factors that affect demand of a product or service
and having an impact on pricing
5. Calculate prices for products and services using various
cost-based approaches
6. Understand the strategy behind target costing
7. Calculate an appropriate target cost
Reference: Chapter 11 and Appendix 12A
Learning Outcomes: 2, 5, 6, 7, 8, 10
Assessment: Quiz #5 (2%)
Final Exam (Cumulative) 35%
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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