ACAF70041
Introductory Management Accounting
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 63.0
Credit Value: 4.5
Credit Value Notes: N/A
Effective: Spring/Summer 2020
Prerequisites: N/A
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Adv Cert Accounting & Finance
Program Coordinator(s): N/A
Course Leader or Contact: N/A
Version: 20200519_00
Status: Approved (APPR)

Section I Notes: This course is offered in two formats - online (Ontariolearn) and blended (on-campus and Slate). For the blended section, there will be an on-campus session each week along with online sessions. The online portion of the blended course is offered through Sheridan's Learning and Teaching Environment (SLATE). Online learning often involves assigned weekly readings, research, assignments, quizzes, journal writing and discussion boards. Some courses may include live online class sessions that allow students and the instructor to engage and share resources as a group. A laptop computer is required for this course. Students will need reliable access to the internet. A Texas Instruments BAII Plus (Business Analyst) or equivalent calculator is required for this course. Students should be prepared to use Excel. To be considered for the Advanced Certificate in Accounting and Finance (ACAF) National Examination eligibility, students must earn a minimum grade of 50% in the ACAF Introductory Management Accounting course and meet the additional standards of achievement as required by CPA Ontario's National Examination Policies.

 
 
Section II: Course Details

Detailed Description
Management Accounting examines how accounting information is used within organizations to plan, monitor, and control its activities. Managers in all functional areas will be exposed to the management accounting system of the organization they work for and it is essential for accountants to have a basic understanding of how such systems operate, the language they use, and their limitations. Students begin their study of management accounting with this course which focuses on cost control and analysis of internal accounting data to plan for future operations and to evaluate past performance. Through a combination of various learning techniques including interactive lectures, inquiry based learning and in-class problem solving students assess the performance of an entity from the organizational level down to a specific activity level.

Program Context

 
Adv Cert Accounting & Finance Program Coordinator(s): N/A
This course is part of the ACAF cluster of course offerings.


Course Critical Performance and Learning Outcomes

  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 the business environment
  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 including transfer pricing
  4. Assess cost systems to determine an appropriate system (job-order costing, activity-based costing, standard costing) for specific industries
  5. Analyze a company's cost-volume-profit relationships to evaluate effects of change on the company's overall financial position
  6. Evaluate keep or drop, make or buy, sell or process further or special order decisions using relevant information
  7. Analyze variances within costing systems to evaluate performance
  8. Create master budgets, flexible budgets and cash budgets/forecasts that support an organization's decision making and strategies
  9. Analyze responsibility centres using appropriate performance indicators

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Pre-work Quizzes (10 @ 1%)10.0%
 Assignments (10 @ 3%)30.0%
 Midterm Exam (Modules 1 to 5 inclusive)25.0%
 Cumulative Final Exam (Module 1 to 10 inclusive)35.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
TEST AND ASSIGNMENT PROTOCOL The following protocol applies to every course offered by Continuing and Professional Studies. 1. Students are responsible for staying abreast of test dates and times, as well as due dates and any special instructions for submitting assignments and projects as supplied to the class by the instructor. 2. Students must write all tests at the specified date and time. Missed tests, in-class/online activities, assignments and presentations are awarded a mark of zero. The penalty for late submission of written assignments is a loss of 10% per day for up to five business days (excluding Sundays and statutory holidays), after which, a grade of zero is assigned. Business days include any day that the college is open for business, whether the student has scheduled classes that day or not. An extension or make-up opportunity may be approved by the instructor at his or her discretion.



Evaluation Plan: ONLINE
 Pre-work Quizzes (10 @ 1%)10.0%
 Assignments (10 @ 3%)30.0%
 Midterm Exam (Modules 1 to 5 inclusive)25.0%
 Cumulative Final Exam (Module 1 to 10 inclusive)35.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
TEST AND ASSIGNMENT PROTOCOL The following protocol applies to every course offered by Continuing and Professional Studies. 1. Students are responsible for staying abreast of test dates and times, as well as due dates and any special instructions for submitting assignments and projects as supplied to the class by the instructor. 2. Students must write all tests at the specified date and time. Missed tests, in-class/online activities, assignments and presentations are awarded a mark of zero. The penalty for late submission of written assignments is a loss of 10% per day for up to five business days (excluding Sundays and statutory holidays), after which, a grade of zero is assigned. Business days include any day that the college is open for business, whether the student has scheduled classes that day or not. An extension or make-up opportunity may be approved by the instructor at his or her discretion.

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


 

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR

 
 
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.
Instruction Mode: In-class & Online Instruction
Professor: N/A
Resource(s):
 TypeDescription
RequiredTextbookManagerial Accounting with Connect, Access Card Package, Garrison, Libby, Webb, Noreen and Brewer, McGraw-Hill Ryerson, 11th Canadian Edition
RequiredTextbookCPA Handbook (Available Through Library)

Applicable student group(s): CAPS students
Course Details:
Module 1: Basic Concepts of Management Accounting, Costs and Cost Flows
  • Compare and contrast financial and managerial accounting.
  • Describe the planning and control cycle and explain its relationship to decision making.
  • Understand and apply the concepts of business process management.
  • Classify costs in various ways (variable versus fixed, product versus period, prime, conversion, direct versus indirect, opportunity, relevant, sunk). 
  • Compare and contrast the preparation of an income statement for merchandising and manufacturing companies.
  • Prepare a schedule of cost of goods manufactured and a schedule of cost of goods sold.
Learning Outcomes: 1, 2
Pre-work Quiz (1%), Assignment (3%)
 
Module 2: Cost Behaviour and Cost-Volume-Profit (C-V-P) Analysis
  • Understand cost behaviour patterns and their relevance to decision making.
  • Understand the underlying assumptions, limitations, and information requirements of C-V-P.
  • Perform single and multi-product C-V-P analysis.
  • Apply sensitivity analysis to C-V-P and contribution analysis.
Learning Outcomes: 2, 3, 5
Pre-work Quiz (1%), Assignment (3%)
 
Module 3: Job- Order Costing
  • Trace the flow of costs in a job-order costing environment.
  • Apply direct materials, direct labour and manufacturing overhead in a job-order costing environment to various types of jobs.
Learning Outcomes: 2, 3, 4
Pre-work Quiz (1%), Assignment (3%)
 
Module 4: Activity-Based Costing
  • Understand the pros and cons of activity-based costing and its applications.
  • Perform the steps involved in activity-based costing.
  • Compare and contrast the application of traditional and activity-based costing.
  • Understand activity-based management concepts (process improvement, process value analysis, cost reduction, activity-based financial performance measurement)
Learning Outcomes: 2, 3, 4
Assessment: Pre-work Quiz (1%), Assignment (3%)
 
Module 5: Absorption and Variable Costing
  • Calculate and compare the cost of a product using variable or direct costing versus full or absorption costing.
  • Compare and interpret income statements prepared using variable or direct versus full or absorption costing.
Learning Outcomes: 2, 3
Pre-work Quiz (1%), Assignment (3%), Midterm (Modules 1 through 5) (25%)
 
Module 6: Budgeting
  • Understand the objectives of budgeting.
  • Understand the budgeting process including functions, relationships, components, time frame and techniques.
  • Explain the difference between forecasts, pro forma, and budgets.
  • Prepare a master budget and its components (i.e. sales, etc.).
  • Prepare a flexible budget.
  • Prepare a cash budget and forecasts.
Learning Outcomes: 8
Pre-work Quiz (1%), Assignment (3%)
 
Module 7: Standard Costs for Materials, Labour and Variable Overhead
  • Establish standard costs for materials and labour.
  • Compute variable cost variances (material price and quantity, labour rate and efficiency, variable overhead spending and efficiency).
  • Identify the criteria used to select variances to investigate (e.g. materiality, cost/benefit, consistency of occurrence, ability to control, nature of item).
  • Interpret favourable and unfavourable variable manufacturing variance analysis.
Learning Outcomes: 2, 3, 4, 7
Pre-work Quiz (1%), Assignment (3%)
 
Module 8: Reporting for Control
  • Describe types of responsibility centres (revenue, cost, profit and investment) and the basic behavioural implications of each.
  • Evaluate different types of responsibility centres using different performance indicators.
  • Prepare and analyze responsibility centre reports.
Learning Outcomes: 2, 3, 9
Pre-work Quiz (1%), Assignment (3%)
 
Module 9: Relevant Costs for Decision Making
  • Understand the difference between relevant and non-relevant costs for decision making.
  • Perform relevant cost analysis to make business decisions: make or buy (outsourcing), special order, sell or process further, add or drop a product/service/department/customer decisions.
Learning Outcomes: 2, 3, 6
Pre-work Quiz (1%), Assignment (3%)
 
Module 10: Pricing in Management Accounting
  • Describe the objectives of transfer pricing.
  • Understand the advantages, disadvantages, behavioural implications and consideration of transfer pricing policies when selecting an appropriate transfer pricing methods (market price, variable cost, full cost, negotiated).
  • Calculate transfer prices using the appropriate transfer pricing method.
  • Identify the factors that affect the demand for a product or service and have an impact on pricing.
  • Perform various approaches to pricing (cost-based, demand-based, target costing, life cycle-based, value-based; reverse engineering pricing strategy).
Learning Outcomes: 2, 3
Pre-work Quiz (1%), Assignment (3%), Cumulative Final exam – Modules 1 through 10 (35%)


Sheridan Policies

All Sheridan policies can be viewed on the Sheridan policy website.

Academic Integrity: The principle of academic integrity 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 professor, or otherwise submitting work that is not the student's own, violates this principle and will not be tolerated. Students who have any questions regarding whether or not specific circumstances involve a breach of academic integrity are advised to review the Academic Integrity Policy and procedure and/or discuss them with the professor.

Copyright: A majority of the course lectures and materials provided in class and posted in SLATE are protected by copyright. Use of these materials must comply with the Acceptable Use Policy, Use of Copyright Protected Work Policy and Student Code of Conduct. Students may use, copy and share these materials for learning and/or research purposes provided that the use complies with fair dealing or an exception in the Copyright Act. Permission from the rights holder would be necessary otherwise. Please note that it is prohibited to reproduce and/or post a work that is not your own on third-party commercial websites including but not limited to Course Hero or OneNote. It is also prohibited to reproduce and/or post a work that is not your own or your own work with the intent to assist others in cheating on third-party commercial websites including but not limited to Course Hero or OneNote.

Intellectual Property: Sheridan's Intellectual Property Policy generally applies such that students own their own work. Please be advised that students working with external research and/or industry collaborators may be asked to sign agreements that waive or modify their IP rights. Please refer to Sheridan's IP Policy and Procedure.

Respectful Behaviour: Sheridan is committed to provide a learning environment that supports academic achievement by respecting 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, Academic Integrity and other academic policies are available on the Sheridan policy website.

Accessible Learning: Accessible Learning coordinates academic accommodations for students with disabilities. For more information or to register, please see the Accessible Learning website (Statement added September 2016)

Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Any changes to course curriculum and/or assessment shall adhere to approved Sheridan protocol. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.


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