ACC631M Advanced Managerial Accounting
Lead Faculty: Dr. Joyce Ellis
The second course in a two course sequence. Measurement, analysis, and use of accounting information for management decision-making. Variable costing and inventory management, capital budgeting and operational budgeting decisions, and performance measurement and control of cost/profit/investment centers.
- Evaluate relevant and irrelevant costs/revenues in choosing among alternatives such as "make or buy", rent or lease, etc., and understand the importance of quantitative as well as qualitative factors in the decision-making process.
- Synthesize short-run from long-run pricing decisions including target-costing approach.
- Evaluate business performance using the four perspective of balanced scorecard.
- Apply the concept of "cost pools" and bases for allocation using the direct allocation, step-down allocation, and reciprocal methods, as well as accounting for joint costs, by-product costs, spoilage, rework, and scrap.
- Apply economic order quantity theory as a tool for the management and inventory control of materials.
- Synthesize capital budgeting techniques such as discounted cash flows, net present value, internal rate of return, payback method, accrual accounting rate-of-return return, and sensitivity analysis to evaluate long-term investment alternatives.
- Apply transfer pricing concepts in setting appropriate domestic and international transfer prices, based on cost, market, resources employed, and other considerations.
- Evaluate return on investment using the DuPont method, residual income, and economic value methods to evaluate performance as an integral part of management control system, and apply these methods to a research case.