Introductory Managerial Accounting
  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: Fall 2020
Prerequisites: ACCG12001D
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Bach Business Admin Accounting, Bach Business Admin Finance
Program Coordinator(s): Lorraine Alyea, Mark Weaver
Course Leader or Contact: Maisa Al Mardini
Version: 20200914_00
Status: Approved (APPR)

Section I Notes: Students registered in the Bachelor of Business Administration-Human Resource Management, , Bachelor of Business Administration-Marketing Management, or Bachelor of Business Administration-Supply Chain Management course are required to take ACCG22000D. This course is required for the Bachelor of Business Administration-Accounting and Bachelor of Business Administration-Finance students.

Section II: Course Details

Detailed Description
Students examine reports, statements and analytical tools used by management, and the manner in which these are applied in planning, controlling, decision-making and performance evaluation. Key concepts 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

Bach Business Admin Accounting Program Coordinator(s): Lorraine Alyea
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. This course is designed to meet the requirements of professional accounting programs of study.

Bach Business Admin Finance Program Coordinator(s): Mark Weaver
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.

Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to record managerial accounting transactions using 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 formulating and implementing an organization's strategy.
  2. Apply cost accounting terminology, concepts and procedures.
  3. Evaluate management information to determine the cost of a product or service and to make appropriate pricing decisions.
  4. Recommend appropriate cost systems (cost accumulation, cost measurement, and overhead assignment methods).
  5. Analyze a company's short term profit structure.
  6. Apply relevant cost analysis and strategic analysis for decision making.
  7. Describe the roles and functions of strategic business units.
  8. Design transfer pricing options that motivate all parties of the transaction.
  9. Analyze and interpret variances within costing systems to evaluate performance.
  10. Create master budgets that support an organization's strategies

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS
 Quizzes (10 x 1%)10.0%
 Assignments (10 x 2%)20.0%
 Midterm Exam *Modules 1&230.0%
 Final Exam *Cumulative40.0%

Evaluation Notes and Academic Missed Work Procedure:
Students will be required to complete the mid-term and final exams using Excel (or a similar spreadsheet program) with Respondus Lockdown browser on their laptops. 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.

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
Professor: Multiple Professors
RequiredTextbookManagerial Accounting, Garrison, Libby, Webb, McGraw-Hill Ryerson, 11th Canadian, 2018

Applicable student group(s): Bach Business Admin Accounting, Bach Business Admin Finance
Course Details:

Module 1 – Overview and foundation of managerial accounting

  • Describe the functions performed by managers, the major differences and similarities between financial and managerial accounting and the basic concepts of lean production and enterprise risk management.
  • Identify the nature and importance of ethics for accountants and the role of corporate social responsibility.
  • Identify the three basic manufacturing cost categories and distinguish between the various cost perspectives (product vs period costs, variable, fixed and mixed costs, direct vs indirect costs, differential costs, opportunity costs, and sunk costs).
  • Prepare a schedule of cost of goods manufactured, cost of goods sold, and income statement using the traditional format and contribution format.
  • Understand and analyze the cost–volume–profit relationship.
  • Compute the break-even point in unit sales and sales dollars, the level of sales needed to achieve a desired target profit, the margin of safety and the degree of operating leverage.

Learning Outcomes: 1, 2, 3

Chapters: 1, 2, 3 and 4

Assessments: Quiz #1 (1%), Quiz #2 (1%), Assignment #1 (2%), Assignment #2 (2%)

Module 2 –  Costing Systems

  • Distinguish between process costing and job-order costing.
  • Recognize the flow of costs through a job-order costing system and process costing systems.
  • Compute predetermined overhead rates, apply overhead cost to work in process using a predetermined overhead rate, and compute underapplied or overapplied overhead cost.
  • Record the journal entries that reflect the flow of costs in a job-order costing system, and to close the balance in manufacturing overhead to the appropriate accounts.
  • Compute the equivalent units of production and the cost per equivalent unit, and assigns costs to units using the weighted-average method and the FIFO method.
  • Prepare a cost reconciliation report accounting for the costs transferred out and the costs in work in process inventory at the end of the period using the weighted-average method and the FIFO method.
  • Explain the activity-based costing model.
  • Assign costs to cost pools, and assign costs to a cost object.
  • Use activity-based costing to compute product and customer margins.

Learning Outcomes: 3 and 4

Chapters: 5, 6

Assessments: Quiz #3 (1%), Quiz #4 (1%), Quiz #5(1%), Assignment #3 (2%), Assignment #4 (2%), Assignment #5 (2%)

Mid-term Exam: Modules 1 and 2 (30%)


Module 3 –  Variable vs. Absorption 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: 4 and 5

Chapter: 8

Assessments: Quiz #6 (1%), Assignment #6 (2%)


Module 4 –  Planning and Control

  • 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.
  • Compute variances for the direct materials, direct labour, variable manufacturing overhead fixed overhead, and explain their significance.
  • 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.
  • Understand and apply the various approaches to setting the transfer price.

Learning Outcomes: 8, 9, 10

Chapters: 9, 10, 11 and Appendix 11

Assessments: Quiz #7 (1%), Quiz #8 (1%), Assignment #7 (2%), Assignment #8 (2%)


Module 5 –  Short-Term and Long-Term Decisions

  • 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.
  • 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 Outcomes: 6, 7

Chapters: 12 and 13

Assessments: Quiz #9 (1%), Quiz #10 (1%), Assignment #9 (2%), Assignment #10 (2%)


FINAL EXAM (Cumulative): 40%



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.

[ Printable Version ]

Copyright © Sheridan College. All rights reserved.