Introductory Management 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: Winter 2021
Prerequisites: N/A
Corequisites: N/A
Equivalents: ACCG22001D
Pre/Co/Equiv Notes: N/A

Program(s): Professional Accounting Grad
Program Coordinator(s): Lorraine Alyea
Course Leader or Contact: Maisa Al Mardini
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: N/A

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.

Program Context

Professional Accounting Grad Program Coordinator(s): Lorraine Alyea
This course is a required course in the Professional Accounting Ontario College Graduate Certificate.

Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to record complex financial accounting transactions using analytical 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. Analyze a company's cost-volume- profit relationships and the effects of various changes on the company's overall financial position.
  4. Evaluate cost systems for specific industries to determine an appropriate system.
  5. Prepare budgets and develop various measures to analyze financial and non-financial measures used for management control.
  6. Analyze relevant information and apply frameworks for making short-term and long-term decisions.
  7. Use appropriate financial software features to complete financial analyses.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Quizzes (10x1%)10.0%
 Assignments (10x2%)20.0%
 Midterm Exam*30.0%
 Final Exam* Comprehensive40.0%

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 and/or monitor. * In addition to achieving a minimum 50% overall grade, a student must achieve a grade of at least 50% on the final comprehensive exam 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 & Online Instruction
Professor: N/A
RequiredTextbookManagerial Accounting, Garrison, Libby, Webb, McGraw-Hill Ryerson, 11th Cdn. ed, 2018

Applicable student group(s): Professional Accounting Ontario College Graduate Certificate
Course Details:

Module 1 – Management Accounting: Overview and Foundation

  • Describe the functions performed by managers.

  • Identify the major differences and similarities between financial and managerial accounting.

  • Explain the basic concepts of lean production and enterprise risk management.

  • Explain the nature and importance of ethics for accountants and the role of corporate social responsibility.

  • Explain how intrinsic motivation, extrinsic incentives, and cognitive biases affect employee behavior.

  • Identify the three basic manufacturing cost categories.

  • Identify and analyze costs nature, costs behaviour, and costs classification in making decision and in predicting costs.

  • Prepare an traditional income statement, a contribution margin approach income statement, a schedule of cost of goods sold and a schedule of cost of goods manufactured.

Learning Outcomes: 1 & 2

Chapters: 1, 2, 3, & Appendix 3A

Assessment: Quiz 1 (1%), Assignment 1 (2%)


Module 2 – Cost-Volume-Profit Relationship

  • Prepare and interpret a cost–volume–profit graph.

  • Analyze and the relationship between the various components in the contribution margin income statement and the effect of changes of its components on contribution margin.

  • Show the effects on contribution margin of changes in variable costs, fixed costs, selling price, and volume.

  • Compute the unit sales and dollar sales needed to break-even and to achieve a desired target profit.

  • Compute the margin of safety and the degree of operating leverage and explain their significance.

  • Compute the break-even point for a multi-product company.

  • Conduct a cost–volume–profit analysis with uncertainty.

Learning Outcome: 3

Chapter: 4 & Appendix 4A

Assessment: Quiz 2 (1%), Assignment 2 (2%)


Module 3 – Costing Systems

  • Distinguish between process costing and job-order costing and recognize the flow of costs through these systems.

  • Record the journal entries that reflect the flow of costs in a job-order costing system and in a process costing system.

  • Compute predetermined overhead rates, apply overhead cost to work in process.

  • Compute underapplied or overapplied overhead cost and prepare the journal entry to close the manufacturing overhead balance.

  • Prepare schedules of cost of goods manufactured and cost of goods sold.

  • Compute the equivalent units of production, the cost per equivalent unit and assign 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.

  • Compute the cost of lost units or shrinkage.

  • Explain the activity-based costing model and how it differs from a traditional costing system.

  • Assign costs to cost pools using a first-stage allocation, compute activity rates. And assign costs to a cost object using a second-stage allocation.

  • Use activity-based costing to compute product and customer margins.

    •  Learning Outcomes: 4

Chapters: 5, 6, & 7, and Appendices 5A, 6A, 6B, and 7A

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


Mid-term Exam: Modules 1 through 3 (30%)


Module 4 – Variable vs. Absorption costing

  • Distinguish between variable costing and absorption costing, and the advantages and disadvantages of each.

  • Compute unit product costs under each method, and prepare income statements using both methods.

  • Reconcile variable costing and absorption costing operating incomes.

Learning Outcome: 4

Chapter: 8

Assessment: Quiz 6 (1%), Assignment 6 (2%)


Module 5 –Planning and Controlling Operations

  • Explain the need for budgeting the processes needed to create budgets.

  • Prepare the supporting components of a master budget, budgeted financial statements, flexible budget, and performance report.

  • Describe variations in the master budget process when applying it to not-for-profit situations.

  • Prepare a contribution margin segmented income statement and distinguish between traceable fixed costs and common fixed costs.

  • Differentiate among responsibility centres and explain how performance is measured in each.

  • Compute the return on investment and residual income.

  • Explain the use of balanced scorecards to assess performance.

Learning Outcome: 5

Chapters: 9, 11 and Appendix 9A

Assessment: Quiz 7 (1%), Quiz 8 (1%), Assignment 7 (2%), Assignment 8 (2%)


Module 6 – Short-Term and Long-Term Decisions

  • Distinguish between relevant and irrelevant costs in decision making.

  • Prepare analyses for various decision situations.

  • 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.

  • Evaluate an investment project that has uncertain cash flows.

  • Rank investment projects in order of preference.

  • Determine the payback period for an investment.

  • Calculate the simple rate of return for an investment.

  • Incorporate income taxes into a capital budgeting analysis.

Learning Outcome: 6

Chapters: 12, 13, & Appendices 13A & 13B

Assessment: Quiz 9 (1%), Quiz 10 (1%), Assignment 9 (2%), Assignment 10 (2%)


FINAL EXAM (Cumulative): 40%

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