About our course, Managerial Accounting

Course Description

• CRN: 80617 and 80864
• Number of Units: 4.0
• Prerequisites: Successful completion of ACCT 001 with a "C" or equivalent.
• Co-requisites: None
• Advisories: None

This course is a study and analysis of how managers use accounting information in decision ­making, planning, directing operations, and controlling, to include the following: terms and concepts; job order cost accounting; process cost accounting; departmental accounting; product analysis; pricing decisions; flexible budgeting; standard cost analysis; cost-­volume-­profit analysis; preparation of operational, capital and financial budgets; and analysis of financial reporting in manufacturing and service environments.

Student Learning Outcomes

As a result of successful completion of this course, a student will be able to:

• Analyze and evaluate managerial decisions using basic managerial accounting concepts and theory.

Course Content Outline

The substance of this course requires students to analyze, evaluate, investigate, compare, examine, contrast, and apply the theory, concepts, and principles utilized in managerial accounting. 

1. 1. Managerial Accounting Concepts and Principles
      1. Managerial Accounting
      2. Role of ethics in managerial accounting
      3. Reporting Manufacturing Activities
      4. Cost Accounting Concepts
      5. Manufacturing Management Principles, Basic Concepts, and Definitions
      6. Using the Information 
      7. Trends in Managerial Accounting
   2. Manufacturing and Job Order Cost Accounting
      1. Manufacturing Activities and Information
      2. The Inventory System and Accounting for Costs
      3. Job Order Cost Accounting
      4. Adjusting of Overapplied and Underapplied Overhead
      5. Using the Information - Multiple Overhead Allocation
      6. General Accounting System for Manufacturing Activities
      7. Ethics in Job Order Cost Accounting
   3. Process Cost Accounting
      1. Process Operations
      2. Process Cost Accounting
      3. Equivalent Units of Production
      4. Accounting for Departments
      5. Transfers to Finished Goods Inventory and Cost of Goods Sold
      6. Using the Information - Spoiled Units of Production
      7. Ethics in Process Cost Accounting
   4. Activity-Based Costing
      1. Plantwide Overhead Rate, Departmental Overhead Rate, and Activity-Based Costing
      2. Cash Flows for Activity-Based Costing
      3. Activities that Cause Overhead Costs
      4. Ethics in Activity-Based Costing
   5. Cost Allocation and Performance Measurement
      1. Additional Methods of Overhead Cost Allocation
      2. Departmental Accounting
      3. Departmental Expense Allocation
      4. Responsibility Accounting
      5. Using the Information - Return on Total Assets by Investment Center
   6. Cost-Volume-Profit Analysis
      1. Identifying Cost Behavior
      2. Measuring Cost Behavior
      3. Break-Even Analysis
      4. Applying Cost-Volume-Profit Analysis
      5. Using the Information - Operating Leverage
      6. Ethics in Cost-Volume-Profit Analysis
   7. Variable Costing and Performance Reporting
      1. Absorption Costing.
      2. Variable Costing
   8. Master Budgets and Planning
      1. Budgeting Process
      2. Budget Administration
      3. Master Budget
      4. Master Budget Components
      5. Using the Information - Zero-Based Budgeting
      6. Production and Manufacturing Budgets
      7. Ethics in Budgeting
   9. Flexible Budgets and Standard Costs
      1. Budgetary Process
      2. Flexible Budget Reports
      3. Materials and Labor Standards
      4. Cost Variances
      5. Overhead Standards and Variances
      6. Extending Standard Costs
      7. Using the Information - Sales Variance
      8. Ethics in Budgeting
   10. Relevant Costing for Managerial Decisions
       1. Relevant Costs and Benefits
   11. Capital Budgeting and Managerial Decisions
       1. Methods Not Using Time Value of Money
       2. Methods Using Time Value of Money
       3. Decisions and Information
       4. Managerial Decision Tasks
       5. Using the Information - Break-Even Time

Course Objectives

Upon successful completion of the course, a student should be able to demonstrate the following activities:

1. Explain the purpose of managerial accounting and identify the information needs of managers, describe the role of the managerial Accountant, and explain the differences between financial and managerial accounting.
2. Define and illustrate costs and classify them by their behavior, traceability, controllability, relevance, and function. Prepare the appropriate Managerial statements and Financial statements.
3. Describe job costing and demonstrate product flow, costing, and related accounting records.
4. Describe process costing and demonstrate product flow, costing, and related accounting records.
5. Describe Activity-Based Costing (ABC) and the impact of technology on costing. Demonstrate and compare how the results from (ABC) differ from the traditional plantwide overhead application.
6. Describe and identify different types of cost behavior and demonstrate break-even analysis, the margin of safety, degree of operating leverage, and sales goals for target incomes using the Cost-Volume-Profit Analysis. Prepare and compare the traditional and contribution-margin income statements.
7. Describe and compare absorption costing and variable costing and prepare and compare income statements using both methods.
8. Describe the importance and benefits of budgeting and the process of budget administration. Describe and prepare a master budget.
9. Define standard costs and flexible budgets. Prepare a variance report, interpret variances, and relate the findings to responsible control.
10. Distinguish between direct and indirect expenses and identify bases for allocating indirect expenses.
11. Analyze investment centers using return on assets and residual income, profit margin and investment turnover, and the balanced scorecard.
12. Explain the nature and need for segment reporting and the relationship with cost, revenue, profit, and investment centers; prepare and analyze related segment reports.
13. Describe the importance of relevant costs and evaluate managerial decisions using relevant costs.
14. Evaluate capital budgeting decisions using break-even time, payback period, accounting rate of return, net present value, and internal rate of return. Describe and explain the use of each method.
15. Explain ethical concerns with managerial accounting and reporting, as well as, methods that can be used to eliminate the problems.

About your instructor, Erica Beam

Hello! My name is Erica L. Beam. My pronouns are she/her/hers. I teach full-time as faculty here at Solano Community College.

I am also part-time faculty at Modesto Junior College in Modesto, CA where I teach accounting courses and First Time in College (FTIC) courses.

I began my education at Modesto Junior College (MJC) where I earned an AS Degree in Business and an AA Degree in Accounting. I transferred to CSU Stanislaus and completed a BS Degree in Accounting. During my time at MJC, I began an internship at a CPA firm. It was at that CPA firm that I became a tax accountant and found a love for accounting!

I took that love for accounting and went to work for the IRS as a Revenue Officer. It wasn’t for me, but I learned a lot! I began the MBA program at CSU Sacramento and found my love for teaching. The rest is history!

On a personal note, I have two beautiful daughters and we live in the Sacramento area. My grandparents moved in with me back in 2020, they are the best people on Earth and I am happy to help take care of them. I proudly root for the San Francisco Giants and love all things Disneyland!