ACG 2071 - Managerial Accounting
College of Business
Credit(s): 3
Contact Hours: 47
Contact Hours: 47
Effective Term Fall 2024 (640)
Requisites
Prerequisite ACG 2021 with a minimum grade of C
Course Description
Students will develop literacy and skills in the application of the basic principles of managerial accounting. Students will apply various costing methods, conduct cost-volume-profit analysis, participate in budgeting, engage in management decision-making, prepare statement of cash flows, and conduct financial statement analysis.
Learning Outcomes and Objectives
- The student will prepare the statement of cash flows, and will apply the information to business problems by:
- explaining the purpose of the statement of cash flows.
- explaining the operating, investing and financing activities of the statement of cash flows.
- using the indirect method.
- The student will analyze financial statements and will apply the information to business problems by:
- explaining the need for comparative financial statement analysis.
- performing horizontal analysis, including trend analysis.
- performing vertical analysis, including common-size financial statements.
- performing ratio analysis to evaluate a company's financial position.
- The student will explain the difference between managerial and financial accounting by:
- distinguishing the differences between merchandiser and manufacturer financial statements.
- defining the three manufacturing product costs, and the differences between product and period cost.
- preparing the cost of goods manufactured schedule and the manufacturing income statement.
- The student will enter transactions into the accounting system and create reports on product and service costs using various costing systems by:
- recording journal entries and preparing reports in a job order costing system.
- recording journal entries and preparing reports in a process costing system.
- using activity-based costing to make business decisions.
- recording journal entries in a just-in-time management system.
- The student will perform cost-volume-profit analysis and will apply it to business problems by:
- explaining variable, fixed and mixed cost.
- defining the contribution margin and explaining how it can be expressed.
- defining and calculating break-even point and target profit.
- defining and calculating the margin of safety.
- defining and applying the degree of operating leverage.
- calculating sales mix.
- preparing a contribution margin income statement.
- explaining the difference between absorption costing and variable costing.
- The student will prepare budgets and budget reports in accordance with responsibility accounting principles by:
- creating a master budget.
- defining flexible budgets and preparing flexible budget performance reports.
- explaining the concepts and components of responsibility accounting.
- explaining the advantages of a standard cost system.
- calculating cost and efficiency variances for the product cost.
- explaining how cost and efficiency variances are used in business decision making.
- applying incremental analysis to make business decisions.
- The student will create financial statements for a manufacturing company by:
- preparing a schedule of a cost of goods manufactured.
- preparing the income statement with the calculation of the cost of goods sold.
- preparing the balance sheet with three types of inventories.
- The student will perform incremental analysis, assessing pricing models, and evaluating capital investment opportunities by:
- calculating the payback method.
- calculating the accounting rate of return method.
- calculating the net present value method.
- calculating the internal rate of return method.
- applying the time value of money concept in decision making.
Criteria Performance Standard
Upon successful completion of this course, the student will, with minimum 70% accuracy, demonstrate mastery of each of the above stated objectives through classroom measures developed by the individual course instructors.
History of Changes
Revised 7/83
Revised 8/84
Reviewed C&I 10/23/90
SCN Change 9/11/92
3 YRC&I Review 8-94
C&I 4/30/96;DBT 5/21/96
Effective Session 19961
Online 20001
3 Yr Rev 2000.
Name chg eff 20011.
C&I 2/8/05, BOT 3/21/05,
Effective 20043(0350).
Effective 20082(0405)
Adm Change to remove acg2011
C&I Approval: 02/17/2024, BOT Approval: 03/19/2024, Effective Term: Fall 2024 (640)
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