Principles of Managerial Accounting Syllabus
ACG 2071, summer 2017, June 26 - July 28
Course & Faculty Information
Lecturer: Dr. Edel Lemus, DBA, MIBA
E-mail: [email protected]
Time: Monday through Friday (1.8 contact hours each day)
Contact hour: 45 hours
Credit: 3
Office hours: By Appointment
Course Description
This course introduces the student to the use of accounting information by
managers. Topics include the use of accounting information for planning and
controlling, capital investment, performance evaluation, decision making, and the
statement of cash flows, along with financial statement analysis.
TextbookInformation
Financial & Managerial Accounting, Information for Decisions, 6th edition by John
J. Wild. Ken W. Shaw and Barbara Chiappetta
Course Objectives
Measurable Course Objectives are outcomes, students are expected to achieve by
the end of the course.
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Distinguish between financial accounting and managerial accounting and
understand the basic terminology involved in accounting for costs.
Calculate costs and journalize transactions using the job order cost system.
Calculate costs and journalize transactions using the process cost system.
Calculate total variances for direct materials, direct labor and factory overhead.
Calculate the break-even point and other statistics using cost-volume-profit
analysis.
Prepare financial statements for a firm where production and sales are not
equal using absorption costing and variable costing.
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Distinguish between centralized and decentralized operations and between cost
centers, profit centers, and investment centers.
Prepare an income statement through contribution margin.
Use rate of return on investment, profit margin and investment turnover to
analyze the performance of investment centers.
Make operating decisions based on differential analysis.
Calculate product price using the cost-plus approach based on total cost,
product cost, and variable cost.
Perform a discounted cash flow analysis.
Calculate various financial ratios.
Prepare a statement of cash flows.
The Collegewide Student Learning Outcomes assessed and reinforced in this
course include the following:
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Communication
Critical Thinking
Scientific and Quantitative Reasoning
Course Materials:
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Basic Calculator (cell phones and graphing calculators may not be used)
Internet access (use of laptop computers/ electronic devices are not permitted
during class)
Notebook and pencil (exams must be completed in pencil)
Evaluation & Grading:
Your grade will be determined based on the following point system.
Points
55
Value
varies
Homework
100
varies
Course Work
45
varies
Ch 13 project
50
50
Exams
Total
400
100 each
Pre-work quizzes
650
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Grading Scale:
A = 90-100%
B = 80-89%
C = 70-79%
D = 60-69%
F = Below 60%
Communication
You are required to check your email {inbox) periodically.
Attendance and Tardiness.
Your success in this course depends on your active involvement (i.e. attendance,
participation, homework completion). Students are accountable for all
information presented in class regardless of attendance. It is up to you to
withdraw yourself.
Tests.
There are 4 unit exams during the term. If you do not take an exam at the
scheduled time, you will automatically receive a zero for that exam. The
purpose of this policy is fairness. If you experience a medical emergency or
death in the family, you must notify me prior to the exam. The reason for missing
the exam and verification of that reason must be provided in writing. Exams
taken before the scheduled date and assignments accepted early will be handled
on a case by case basis but should not be expected. Note ： Unless otherwise
noted in class, students are expected to memorize the formulas and
computations used to solve problems. Anything said or presented in class, in the
text, on homework, quizzes or previous exams is subject to testing. Students may
not leave the room during an exam unless they are ready to turn in their exam. In
addition, all personal communication devices should be turned off and put
away during class and exam time.
Assignments
Assignments are problems and short answer questions that promote your ability
to apply knowledge and communicate course information professionally and
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within the context of business and accounting rules and standards. Points will be
deducted for assignments that are incomplete, wrong or not professionally
prepared. Due dates will be communicated in class. No points will be earned
for assignments turned in late or submitted by email. The answers to
assignments and homework will be provided in class after the due date. You are
required to complete work inside and outside of class. If you fail to turn in an
assignment because you missed class it will not be accepted . All assignments
and class work are to be completed on an individual basis, unless otherwise
stated. I suggest you establish the 'buddy system’ with another student. Your
buddy will be your source of information if you miss class and need to find out
what was covered in class.
Make-up exams and assignments: Make-up exams and assignments will not be
allowed, except in the case of documented events such as jury duty or military
service. Acceptance of documentation is at sole discretion of the instructor.
Please arrive 15 minutes early for the appointment time you choose. You will not
be allowed to take the make-up exam if you are even one minute late for your
appointment. Bring your ID pencil, and calculator(no graphing calculators or cell
phones).
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Learning Objectives by chapter
 Chapter 12 Reporting Cash Flows
1. Distinguish between operating, investing, and financing activities, and describe
how noncash investing and financing activities are disclosed.
2. Analyze the statement of cash flows and apply the cash on total assets ratio.
3. Prepare a statement of cash flows.
4. Compute cash flows from operating activities using the indirect method.
5. Determine cash flows from both investing and financing activities.
 Chapter 13 Analysis of Financial Statements
1. Explain the purpose and identify the building blocks of analysis.
2. Describe standards for comparisons in analysis.
3. Summarize and report results of analysis.
4. Explain and apply methods of horizontal analysis.
5. Describe and apply methods of vertical analysis.
6. Define and apply ratio analysis.
 Chapter 14 Managerial Accounting Concepts and Principles
1. Explain the purpose and nature of, and the role of ethics in, managerial
accounting.
2. Describe accounting concepts useful in classifying costs.
3. Define product and period costs and explain how they impact financial
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statements.
4. Explain how balance sheets and income statements for manufacturing,
merchandising, and service companies differ.
5. Explain manufacturing activities and the flow of manufacturing costs.
6. Describe trends in managerial accounting.
7. Assess raw materials inventory management using raw materials inventory
turnover and days’ sales in raw material inventory.
8. Compute cost of goods sold for a manufacturer and for a merchandiser.
9. Prepare a schedule of cost of goods manufactured and explain its purpose and
links to financial statements.
 Chapter 15 Job Order Costing and Analysis
1. Describe important features of job order production.
2. Explain job cost sheets and how they are used in job order costing.
3. Apply job order costing in pricing services.
4. Describe and record the flow of materials in job order costing.
5. Describe and record the flow of labor costs in job order costing.
6. Describe and record the flow of overhead costs in job order costing.
7. Determine adjustments for overapplied and underapplied overhead.
 Chapter 16 Process Costing and Analysis
1. Explain process operations and the way they differ from job order operations.
2. Define and compute equivalent units and explain their use in process costing.
3. Describe accounting for production activity and preparation of a process cost
summary using weighted average.
4. Compare process costing and job order costing.
5. Explain and illustrate a hybrid costing system.
6. Record the flow of materials costs in process costing.
7. Record the flow of labor costs in process costing.
8. Record the flow of factory overhead in process costing.
9. Record the transfer of goods across departments, to finished goods inventory
and to cost of goods sold.
 Chapter 17 Activity-Based Costing and Analysis
1. Distinguish between the plantwide overhead rate method, the departmental
overhead rate method, and the activity-based costing method.
2. Explain cost flows for activity-based costing.
3. Describe the four types of activities that cause overhead costs.
4. Identify and assess advantages and disadvantages of the plantwide overhead
and departmental overhead rate methods.
5. Identify and assess advantages and disadvantages of activity-based costing.
6. Allocate overhead costs to products using the plantwide overhead rate method.
7. Allocate overhead costs to products using the departmental overhead rate
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method.
8. Allocate overhead costs to products using the activity-based costing method.
 Chapter 18 Cost Behavior and Cost -Volume-Profit Analysis (CVP)
1. Describe different types of cost behavior in relation to production and sales
volume.
2. Describe several applications of cost-volume-profit analysis.
3. Compute the contribution margin and describe what it reveals about a
company’s cost structure.
4. Analyze changes in sales using the degree of operating leverage.
5. Determine cost estimates using the scatter diagram and high-low methods of
estimating costs.
6. Compute the break-even point for a single product company.
7. Graph costs and sales for a single product company.
8. Compute the break-even points for a multiproduct company.
 Chapter 19 Variable Costing and Analysis
1. Describe how absorption costing can result in overproduction.
2. Use variable costing in pricing special orders.
3. Compute unit cost under both absorption and variable costing.
4. Prepare and analyze an income statement using absorption costing and using
variable costing.
5. Convert income under variable costing to the absorption cost basis.
6. Determine product selling price based on absorption costing.
 Chapter 20 Master Budgets and Performance Planning
1. Describe the benefits of budgeting and the process of budget administration.
2. Describe a master budget and the process of preparing it.
3. Analyze expense planning using activity-based budgeting.
4. Prepare the operating budget components of a master budget for a
manufacturing company.
5. Prepare a cash budget.
6. Prepare budgeted financial statements.
 Chapter 21 Flexible Budgets and Standard Costs
1. Describe standard costs and explain how standard cost information is useful
for management by exception.
2. Describe cost variance and what they reveal about performance.
3. Analyze changes in sales from expected amounts.
4. Prepare a flexible budget and interpret a flexible performance report.
5. Compute materials and labor variances.
6. Compute overhead controllable and volume variance.
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 Chapter 22 Performance Measurement and Responsibility Accounting
1. Distinguish between direct and indirect expenses and identify bases for
allocating indirect expenses to departments.
2. Analyze investment centers using return on investment and residual income.
3. Analyze investments centers using profit margin and investment turnover.
4. Analyze investment centers using the balanced scorecard.
5. Compute cycle time and cycle efficiency, and explain their importance to
production management.
6. Prepare a responsibility accounting report using controllable costs.
7. Allocate indirect expenses to departments.
8. Prepare departmental income statements and contribution reports.
 Chapter 23 Relevant Costing for Managerial Decisions
1. Describe the importance of relevant costs for short-term decisions.
2. Evaluate short-term managerial decisions using relevant costs.
3. Determine product selling price based on total costs.
4. Identify relevant costs and apply them to managerial decisions.
 Chapter 24 Capital Budgeting and Investment Analysis
1. Analyze a capital investment project using break-even time.
2. Compute payback period and describe its use.
3. Compute accounting rate of return and explain its use.
4. Compute net present value and describe its use.
5. Compute internal rate of return and explain its use.
 Appendix B – Time Value of Money
1. Describe the earning of interest and the concepts of present and future value.
2. Apply present value concepts to a single amount by using interest tables.
3. Apply present value concepts to an annuity by using interest tables.
Course Outline:
Please note that this outline is meant to give an overview of the major concepts
this course. Changes may occur in this calendar as needed to aid in the student’s
development.
Best way to study and prepare in addition to reading the chapter:
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Read the Chapter Preview, Learning Objectives and opening story at
the beginning of each chapter.
Pay attention to the Point, Decision Insight, and Need-To-Know sections
throughout chapter.
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Read and understand the Global View, Summary, Key Terms, and Quiz
at the end of each chapter. Understanding accounting terminology is
critical.
Week 1
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Introduction
Discuss Chapter 12
Chapter 12
Discuss Chapter 24 and Appendix B
Chapter 24
Review for Exam 1
Week 2
 Exam 1 – Chapters 12 & 24/Appendix B
 Discuss Chapter 14
Give out Group Project
 Chapter 14
 Discuss Chapter 15
 Chapter 15
 work on project
Week 3
 Discuss Chapter 16
 Chapter 16
 Review for Exam 2
 Exam 2 – Chapters 14, 15 and 16
 Discuss Chapter 18
 Chapter 18
Week 4
 Discuss Chapter 19
 Chapter 19
 Discuss Chapter 23/Review for Exam 3
 Exam 3 – Chapters 18, 19 & 23
 Discuss Chapter 20
 Chapter 20
Week 5
 Discuss Chapter 21
 Chapter 21
 Chapter 22
 Discuss Chapter 22
 Review for Exam 4
 Exam 4 – Chapters 20, 21 & 22
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AcademicIntegrity
As members of the Seminole State College of Florida community, students are
expected to be honest in all of their academic coursework and activities.
Academic dishonesty, such as cheating of any kind on examinations, course
assignments or projects, plagiarism, misrepresentation and the unauthorized
possession of examinations or other course-related materials, is prohibited.
Plagiarism is unacceptable to the college community. Academic work that is
submitted by students is assumed to be the result of their own thought, research
or self-expression. When students borrow ideas, wording or organization from
another source, they are expected to acknowledge that fact in an appropriate
manner. Plagiarism is the deliberate use and appropriation of another's work
without identifying the source and trying to pass-off such work as the student's
own. Any student who fails to give full credit for ideas or materials taken from
another has plagiarized.
Students who share their work for the purpose of cheating on class assignments
or tests are subject to the same penalties as the student who commits the act of
cheating.
When cheating or plagiarism has occurred, instructors may take academic action
that ranges from denial of credit for the assignment or a grade of "F" on a specific
assignment, examination or project, to the assignment of a grade of "F" for the
course. Students may also be subject to further sanctions imposed by the judicial
officer, such as disciplinary probation, suspension or dismissal from the College.
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