The focus of this course is on the attributes of cost and management accounting systems. Unlike financial accounting, there are no generally accepted procedures in management accounting. Each firm has its own set of reports, analyses, and procedures. More important than learning the principles and procedures of management accounting is your ability to properly choose and apply those principles and procedures to a situation and then effectively communicate your findings. This course will emphasize your learning to choose and appropriately apply the procedures and to analyze and communicate your results.
Students will demonstrate an understanding and be able to explain the following concepts:
- The nature and purpose of managerial accounting.
- The importance of managerial accounting information and techniques to parties within an organization in order to make optimal decisions, establish meaningful plans, implement strategies (i.e., control) and evaluate performance.
- The types of reports and information that managers need to make decisions.
- The flow of resources through manufacturing and service organizations along with the accumulation of different types of costs as these resources flow through an organization.
- The differences between traditional costing and activity-based costing approaches.
- The purpose and types of organizational budgets.
- How responsibility accounting can allow organizations to monitor performance of cost, profit and investment centers and how to calculate and analyze variances resulting from comparison of actual and standard cost data.
- The difference between relevant and irrelevant information for business decision making as applied to various problems (i.e., acceptance/rejection of special orders, make or buy decisions, etc.)
- The importance of ethics and professional integrity.