Cost and Managerial Accounting 1B
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2021
Prerequisites: ACCG23626
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Business Accounting, Business Admin. Accounting
Program Coordinator(s): Jennifer Peterson
Course Leader or Contact: Peter Kamala
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: 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(s): Jennifer Peterson
This course is a core component of the second year of the Business Accounting Program.

Business Admin. Accounting Program Coordinator(s): Jennifer Peterson
This course is a core component of the second year of the Business Administration 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. Apply variable costing and absorption costing to organizations.
  2. Prepare a master budget and a flexible budget to aid in planning, controlling and evaluating an organization.
  3. Distinguish between the types of responsibility centres and the measurement of their performance
  4. Distinguish between relevant and irrelevant costs in decision making.
  5. Prepare analyses for various short-term decision situations.
  6. Evaluate the acceptability of investment projects using various methods.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS
 Online Pre- work (Best 5 of 6 @ 2% each)10.0%
 Online Homework (Best 5 of 6 @ 2% each)10.0%
 In-Class Quizzes (Best 5 of 6 @ 2% each)10.0%
 Mid-term Exam (Modules 1 - 3)30.0%
 Final Exam (Comprehensive Modules 1 - 5)40.0%

Evaluation Notes and Academic Missed Work Procedure:
*These assignments are either completed online, outside of class time or in class. Failure to complete an assignment by the due date will result in a zero on that assignment. No makeups or extensions are available. In addition to achieving a minimum 50% overall grade, a student must have a combined average of at least 50% on the in-class quizzes, mid-term and final exam in order to receive credit for this course. Students may be required to complete the quizzes, mid-term and final exams using Excel (or a similar spreadsheet program) with Respondus Lockdown browser and/or monitor (or similar software) on their laptops.

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


Essential Employability Skills
Essential Employability Skills emphasized in the course:

  • Communication Skills - Communicate clearly, concisely and correctly in the written, spoken, visual form that fulfills the purpose and meets the needs of the audience.
  • Numeracy - Execute mathematical operations accurately.
  • Critical Thinking & Problem Solving Skills - Use a variety of thinking skills to anticipate and solve problems.
  • Critical Thinking & Problem Solving - Apply a systematic approach to solve problems.
  • Information Management Skills - Analyze, evaluate, and apply relevant information from a variety of sources.
  • Information Management - Locate, select, organize and document information using appropriate technology and information systems.
  • Interpersonal Skills - Show respect for the diverse opinions, values, belief systems, and contributions of others.
  • Interpersonal Skills - Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.
  • Personal Skills - Manage the use of time and other resources to complete projects.
  • Personal Skills - Take responsibility for one's own actions, decisions, and consequences.

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
Professor: Multiple Professors
RequiredTextbookManagerial Accounting, Garrison, Chesley, Carroll, Webb & Libby, McGraw-Hill & Ryerson, 11th Canadian ed., 2018, with Connect Access

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

Module 1: Variable Costing

  • Distinguish between variable costing and absorption costing.
  • Compute unit product costs and prepare income statements under each method.
  • Reconcile variable costing and absorption costing operating incomes.

Learning Outcomes: 1

Reference: Chapter 8

Evaluations: Online Pre-work #1 (2%), Online Homework #1 (2)%, In-class Quiz #1 (2%)


Module 2:  The Budgeting Process

  • Explain the importance of budgeting and its process.
  • Prepare the supporting components of a master budget, budgeted financial statements and a flexible budget.
  • Describe variations in the master budget process when applying it to not-for-profit situations.

Learning Outcome: 2

Reference: Chapter 9 & Appendix 9A

Evaluations: Online Pre-work #2 (2%), Online Homework #2 (2%), In-class Quiz #2 (2%)


Module 3: Short-Term Decision Making

  • Distinguish between relevant and irrelevant costs in decision making.
  • Prepare analyses for various decision situations: adding or dropping a segment decision, make vs. buy decision, special orders decision, joint products, and sell or process further decision.
  • Determine the most profitable use of a constrained resource and the value of obtaining more of the constrained resource.

Learning Outcome: 4

Reference: Chapter 12

Evaluations: Online Pre-work #3 (2%), Online Homework #3 (2%), In-class Quiz #3 (2%)


Mid-term Exam (30%) – Chapters 8, 9 & 12 (Modules 1, 2, & 3).


Module 4: Reporting for Control

  • Prepare a segmented income statement using the contribution format, and explain the difference between traceable fixed costs and common fixed costs.
  • Differentiate among responsibility centres and explain how performance is measured in each.
  • Understand the return on investment, residual income, and the use of balanced scorecards to assess performance.
  • Determine the range, if any, within which a negotiated transfer price should fall, and explain approaches to setting the transfer price.

Learning Outcome: 3

Reference: Chapter 11, Appendix 11A: Transfer Pricing

Evaluations: Online Pre-work #4 (2%), Online Pre-work #5 (2%), Online Homework #4 (2%), In-class Quiz #4 (2%), In-class Quiz #5 (2%)


Module 5: Capital Budgeting Decision

  • Evaluate the acceptability of an investment project using the net present value method and the internal rate of return method, and rank investment projects in order of preference.
  • Evaluate an investment project that has uncertain cash flows.
  • Calculate the payback period for an investment and the simple rate of return for an investment.
  • Explain present value concepts and the underlying mathematics of interest.
  • Incorporate income taxes into a capital budgeting analysis.


Learning Outcome: 5

Reference: Chapter 13 & Appendices 13A & 13B

Evaluations: Online Pre-work #6 (2%), Online Homework #6 (2%), In-class Quiz #6 (2)%


Final Exam (40%) - Comprehensive


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