National University

ACC202 Managerial Accounting Funds.

Lead Faculty: Dr. Connie Fajardo

Course Description

This course is an overview of the use of financial accounting and cost accounting data for the design and preparation of reports to aid management in organizing, directing, controlling, and decision-making functions. The topics include the fundamentals of cost accounting, budgeting and responsibility accounting for cost and profit centers.

Learning Outcomes

  • Explain the importance of having accurate unit cost information for each product in the case of a manufacturer, or for each engagement or contract in the case of a service organization.
  • Compute pre-determined overhead rate under job order costing and determine the elements of manufacturing costs that are included in the Work in process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts.
  • Apply manufacturing overhead to each of several jobs using both a single overhead-rate approach and an activity-based-costing approach, and explain the advantages and disadvantages of the latter, as compared to the former.
  • Analyze mixed (semi-variable) costs into variable and fixed components, using both the "high-low" method, and the Excel scatter-graph approach, and explain the purpose for such an analysis.
  • Apply cost-volume-profit and contribution margin concepts to break-even analysis, margin of safety, and operating leverage, and explain how these information are used by management.
  • Indicate several reasons why companies prepare budgets for their profit centers and cost centers, and explain what role supervisors and middle managers should play in the budgeting process.
  • Prepare a cash budget and a flexible operating budget from facts and assumptions provided.
  • Apply the concepts of contribution margin, segment margin, discretionary and committed fixed costs, traceable and common fixed costs to resolving common types of management decisions, such as whether to discontinue a product or profit center, buy or make a component, sell or process further, etc.
  • Apply commonly used techniques such as ROI (DuPont method) and Residual Income for measuring the performance of investment center managers.
  • Evaluate proposed capital budget expenditures on the basis of commonly used project assessment techniques.