Module 1: Decision making and Relevant Information
- Distinguish relevant from irrelevant information in short-term and long-term decision making and identify the difference among relevant costs.
- Apply decision making techniques using relevant and irrelevant costs and revenue as well as quantitative and qualitative information.
- Explain the opportunity-cost concept, the theory of constraints and the irrelevance of equipment book value in equipment replacement decisions.
- Apply the concept of the time value of money to capital budgeting decisions.
- Evaluate discounted cash flow and non-discounted-cash-flow methods to calculate rate of return.
- Analyze the impact of income taxes on discounted cash flows and capital budgeting decisions and apply DCF methods of capital budgeting.
- Assess the complexities in capital budgeting within an interdependent set of value-chain business functions.
- Apply the concept of defensive strategic investment to the capital budgeting process.
Learning Outcomes: 1, 2, 3 and 11
Chapters: 11 and 21
Assessments: Quiz #1 (1%), Quiz #2 (1%), Assignment #1 (2%), Assignment #2 (2%)
Module 2: Pricing
- Discuss the major influences on pricing decisions.
- Understand how companies make short-run and long-term pricing decisions.
- Price products using the target-costing approach, the cost-plus approach, and the life-cycle budgeting and costing.
Learning Outcomes: 4 and 11
Chapters: 13
Assessments: Quiz #3 (1%), Assignment #3 (2%)
Module 3: Strategy, balanced Scorecard and Profitability
- Understand the relative strength of competitive forces and how they aid managers in identifying strategic alternatives.
- Understand reengineering and the four perspectives of the balanced scorecard.
- Evaluate strategic success at implementing a strategy using balanced scorecard measures.
- Analyze the results from specific productivity and capacity control strategies to achieve balanced scorecard expectations.
Learning Outcomes: 5 and 11
Chapters: 14
Assessments: Quiz #4 (1%), Assignment #4 (2%)
Module 4: Cost Allocation
- Understand the purposes for period cost allocation and the criteria to justify the method chosen to allocate the non-manufacturing costs.
- Evaluate and select between the single- and dual-rate cost methods to apply period costs of support departments and analyze how the selection affects the calculation of efficiency variance.
- Evaluate and select among the direct, step-down, and reciprocal methods of allocating support division costs to production divisions.
- Analyze cost allocation procedures to apply common costs and justify contractual reimbursement terms.
- Distinguish among different types of saleable products, scrap, and toxic waste.
- Analyze and implement the methods to allocate joint costs.
- Understand the irrelevance of joint costs in the “sell or process further” decision.
- Identify the strategic implications of a decision to implement one joint cost allocation method.
- Account for byproducts using two different methods.
Learning Outcomes: 6 and 11
Chapters: 15 and 16
Assessments: Quiz #5 (1%), Quiz #6 (1%), Assignment #5 (2%), Assignment #6 (2%)
Mid-term exam - Modules 1 through 4 (25%)
Module 5: Revenues, Customers, and Profitability
- Select a method and allocate revenue from a product bundle to its distinct components.
- Apply an activity-based costing system to allocate costs when the customer is the cost object.
- Calculate and interpret four levels of contribution margin variance analyses.
- Generate a customer profitability profile.
- Analyze relevant profitability data and decide whether to drop or add customers or branches.
Learning Outcomes: 7 and 11
Chapters: 17
Assessments: Quiz #7 (1%), Assignment #7 (2%)
Module 6: Spoilage, Rework, and Scrap
- Distinguish among spoilage, rework, and scrap, and apply the appropriate methods to account for normal and abnormal spoilage.
- Apply process-costing methods and the standard-costing method to account for spoilage.
- Allocate costs of normal spoilage.
- Apply job cost allocation procedures to account for spoilage in job costing and to account for reworked units and scrap.
Learning Outcomes: 8 and 11
Chapters: 19
Assessments: Quiz #8 (1%), Assignment #8 (2%)
Module 7: Inventory Cost Management
- Evaluate relevant data and decide on the economic order quantity.
- Resolve conflicts that can arise from results of EOQ and performance models.
- Analyze the relevant benefits and costs of JIT alternatives.
- Differentiate a materials requirements planning (MRP) strategy from an enterprise resource planning (ERP) strategy of supply-chain management.
- Evaluate and decide upon an appropriate backflush costing method.
Learning Outcomes: 9 and 11
Chapters: 20
Assessments: Quiz #9 (1%), Assignment #9 (2%)
Module 8: Assessing Performance
- Integrate the accounting internal control system assurance framework with existing legislation.
- Apply transfer-pricing processes.
- Assess the market-based transfer price method.
- Apply relevant costs and tax considerations to evaluate the selection of cost-based and negotiated transfer prices.
- Analyze income tax considerations in multinational transfer pricing.
- Analyze and evaluate alternative measures of financial performance.
- Evaluate current-cost and historical-cost asset measurement methods.
- Analyze the technical difficulties that arise when comparing the performance of divisions operating in different countries.
- Evaluate the behavioural effects of salaries and incentives in compensation arrangements.
- Apply strategic concepts to analyze the four levers of control and evaluate their usefulness.
Learning Outcomes: 10 and 11
Chapters: 22 and 23
Assessments: Quiz #10 (1%), Quiz #11 (1%), Assignment #10 (2%), Assignment #11 (2%)
Assessment: Group Project (10%)
Cumulative Final exam - Modules 1 through 8 (35%)