Building on ACCT 2251: Management Accounting, students further develop their ability to use
quantitative and non-quantitative information to make effective planning and control
decisions. Topics include strategy, balanced scorecard, and profitability analysis; period
cost application; cost allocation, including joint products and byproducts; revenue and
customer profitability analysis; process costing and spoilage, rework, and scrap; cost
management and quality, time, and the theory of constraints; capital budgeting; transfer
pricing and multinational management control systems.
After successfully completing this course, students 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
- 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
- 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
- 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., Beaubien, L., & Graham C. (2016)
Cost Accounting: A Managerial Emphasis. 7th Canadian Edition. Toronto, ON: Pearson
Type: Textbook. ISBN-13: 9781323686690
Note: Students enrolling in this course will receive a custom version of the above textbook
printed by the publisher, which differs from the ISBN above.
Students 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.
Students can find detailed information about the hardware, software, and computer skills
requirements for the course at http://www.tru.ca/distance/services.html.
To successfully complete this course, students must achieve a passing grade of 50% or higher
on the overall course and 50% or higher on the final mandatory exam. However, CGA and CICA
will only recognize this course if you achieve an overall C+ (65% to 69%) or higher.
|Final Exam *
Open Learning Faculty Member
An Open Learning Faculty Member is available to assist students. Primary communication is
through the Learning Environment's "Mail" tool or by phone. Students will receive the
necessary contact information when starting the course.