Intermediate Management Accounting
This is an intermediate course in management accounting. Topics include an in-depth study of general purpose and special product costing systems; spoilage/rework and scrap; cost estimation; linear and non-linear CVP; production, quality, and pricing decisions; capital budgeting; operational budgeting; variance analysis; decentralization, segmented reporting, transfer pricing, per¬formance evaluation, and incentive systems. Spreadsheet applications are used to reinforce some course concepts. (CA, CMA, PMAC).
BBUS 2541 or an equivalent introductory course in management accounting. MATH 1101, or an alternate course providing exposure to linear programming, is recommended. Familiarity with Microsoft Excel spreadsheet application is also recommended.
After successfully completing this course, you will be able to use your management accounting knowledge and skills to provide relevant and useful information to inform the decision-making processes within an organization. You will be able to:
- Explain competitive forces and relate these to strategic decision frameworks.
- Identify and evaluate strategic success, using balanced scorecard measures.
- Evaluate and select between a single and dual-rate cost method to apply period costs of support activities.
- Evaluate, select, and use the three most common cost allocation methods to allocate support department, or period overhead, costs.
- Explain, evaluate, and apply the physical measure, sales value at split-off and net realizable value cost allocation methods to joint products and by-products.
- Allocate revenue from a product bundle to its distinct components.
- Calculate and interpret revenue variance analyses.
- Generate a customer profitability profile.
- Apply process costing techniques using the weighted average and first-in, first-out (FIFO) methods. Incorporate transferred-in costs, spoilage, rework, and scrap.
- Apply balanced scorecard concepts to quality analysis and demonstrate an understanding of the use of time as a competitive tool.
- Analyze quality control problems.
- Demonstrate an understanding of time as a competitive tool.
- Apply the concept of the time value of money to capital budgeting decisions, using the net present value and internal rate of return methods.
- Analyze alternative approaches used to recognize the degree of risk in capital budgeting projects.
- Demonstrate an understanding of the effects of capital cost allowance and income tax on capital budgeting decisions.
- Explain the effect of inflation on capital budgeting decisions.
- Evaluate and apply transfer-pricing methods to products.
- Discuss the effects of income tax when establishing transfer-pricing policies in multinational organizations.
- Module 1: Strategy, Balanced Scorecard, and Profitability Analysis
- Module 2: Period Cost Application
- Module 3: Cost Allocation: Joint Products and Byproducts
- Module 4: Revenue and Customer Profitability Analysis
- Module 5: Process Costing and Spoilage, Rework, and Scrap
- Module 6: Cost Management: Quality, Time, and the Theory of Constraints
- Module 7: Capital Budgeting
- Module 8: Transfer Pricing and Multinational Management Control Systems
Required Text and Materials
Horngren, C. T., Datar, S. K., Foster, G., Rajan, M., Ittner, C., Gowing, M. P., & Janz, S. Cost Accounting: A Managerial Emphasis
. 6th Canadian Edition. Toronto, ON: Pearson Canada Inc., 2013.
Type: Textbook. ISBN: 978-0-13-259500-1
NOTE: Students will receive a custom reprinted text, ISBN: 978-1-256-91377-1 / 1-256-91377-4. This ISBN differs from the one above however all content is the same.
You will need MS Office (2003 or higher) with Word, Excel.
A financial calculator is required. A Hewlett Packard 10bII, 10bII+, 12c, or Texas Instrument BAII Plus is recommended.
You can find detailed information about the hardware, software, and computer skills requirements for your course at http://www.tru.ca/distance/services/online_courses.html.
Open Learning Faculty Member Information
An Open Learning Faculty Member is available to assist students. Primary communication is through Blackboard's "Mail" tool or by phone. You will receive the necessary contact information when you start your course.
To successfully pass this course, you must achieve a passing grade of 50% or higher on the overall course and 50% or higher on the mandatory final exam. However, CGA and CICA will only recognize this course if you achieve an overall C+ (65% to 69%) or higher. The following table illustrates how your final grade will be determined:
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