Active Outline

General Information

Course ID (CB01A and CB01B)
ACCTD01CH
Course Title (CB02)
Managerial Accounting - HONORS
Course Credit Status
Credit - Degree Applicable
Effective Term
Fall 2021
Course Description
Study the role of management accounting information in organizations for operational control, product and customer costing and performance measurement. As an honors course, the students will be expected to complete extra assignments to gain deeper insight in Accounting.
Faculty Requirements
Course Family
Not Applicable

Course Justification

This course is a major preparation requirement in the discipline of Accounting/Business for several CSU and UC campuses. This course belongs on the Accounting Certificate of Achievement and the Accounting A.A. Degree. This course is the third course in a sequence of three courses in accounting intended to provide the student who has successfully completed Financial Accounting I (ACCT D001A) and Financial Accounting II (ACCT D001B) with the ability to recognize and utilize different cost accounting systems, compute break even analysis, account for overhead, prepare budgets and use time value of money concepts to make business decisions. This course is the honors version of ACCT D001C and as a result includes more advanced assignments and assessments.

Foothill Equivalency

Does the course have a Foothill equivalent?
Yes
Foothill Course ID
ACTG F001C

Course Philosophy

Formerly Statement

Course Development Options

Basic Skill Status (CB08)
Course is not a basic skills course.
Grade Options
  • Letter Grade
  • Pass/No Pass
Repeat Limit
0

Transferability & Gen. Ed. Options

Transferability
Transferable to both UC and CSU
C-IDArea(s)StatusDetails
ACCTAccountingApprovedC-ID ACCT 120

Units and Hours

Summary

Minimum Credit Units
5.0
Maximum Credit Units
5.0

Weekly Student Hours

TypeIn ClassOut of Class
Lecture Hours5.010.0
Laboratory Hours0.00.0

Course Student Hours

Course Duration (Weeks)
12.0
Hours per unit divisor
36.0
Course In-Class (Contact) Hours
Lecture
60.0
Laboratory
0.0
Total
60.0
Course Out-of-Class Hours
Lecture
120.0
Laboratory
0.0
NA
0.0
Total
120.0

Prerequisite(s)

ACCT D001B or ACCT D01BH

Corequisite(s)

Advisory(ies)

Limitation(s) on Enrollment

  • (Not open to students with credit in the non-Honors related course.)
  • (Admission into this course requires consent of the Honors Program Coordinator.)

Entrance Skill(s)

General Course Statement(s)

Methods of Instruction

Lecture and visual aids

Discussion of assigned reading

Discussion and problem solving performed in class

In-class exploration of Internet sites

Quiz and examination review performed in class

Homework

Guest speakers

Collaborative learning and small group exercises

Collaborative projects

Assignments

  1. Reading
    1. Reading from text
    2. Reading from current business publications
  2. Written and Oral Communications
    1. Written homework assignments
    2. Oral presentation and class participation
  3. Group Work
    1. Solve problems
    2. Discuss current readings
    3. Analyze case studies and/ or work on projects
  4. Computer Assignments
    1. Problem solving activity using spreadsheet software
    2. Prepare and edit document with spreadsheet or word processing software
  5. Honors Assignment should include one of more of the following
    1. Completion of additional sets of problems that require a deeper understanding of the topics and concepts of financial accounting.
    2. Written accounting research project.
    3. Oral presentation on an accounting research project.

Methods of Evaluation

  1. Written and problem-solving examinations and quizzes to include costing methods comprehension, budgeting and incremental analysis through preparation of management reports and budgets.
  2. Group projects and class participation to include quantitative and qualitative problem-solving and demonstrating ability to apply and communicate course concepts.
  3. Comprehensive final examination to include problem-solving, analytics, as well as essay and/or short-answer questions that requires students to summarize, integrate, and critically analyze and apply concepts examined throughout the course.
  4. Computerized accounting homework and projects to evaluate the ability to critically analyze, apply, and synthesize course materials.
  5. The honors assignment would be evaluated for the level of conceptual understanding of the advanced material, depth of analysis, and critical thinking skills.

Essential Student Materials/Essential College Facilities

Essential Student Materials: 
  • None.
Essential College Facilities:
  • None.

Examples of Primary Texts and References

AuthorTitlePublisherDate/EditionISBN
Warren, Reeve, and Duchac, Accounting, 26th ed, Mason, OH: Cengage Learning, 2016.
Garrison, Noreen, and Brewer, Managerial Accounting, 15th ed. New York, NY: McGraw Hill, Inc., 2015

Examples of Supporting Texts and References

AuthorTitlePublisher
Current business and financial publications
Annual reports of various corporations

Learning Outcomes and Objectives

Course Objectives

  • Recognize management accounting information as a creator of value
  • Analyze cost concepts and the cost assignment process
  • Analyze cost behavior and the role of resource usage in understanding cost behavior.
  • Compare and contrast the cost accounting system of the service, merchandising and manufacturing firms.
  • Assess the departmental cost allocation process
  • Examine activity based costing
  • Recognize strategic cost management, lifecycle cost management and Just In Time
  • Calculate break-even, evaluate cost volume profit relationships, and compare variable and absorption costing
  • Apply relevant costing and tactical decision making
  • Recognize and describe the use of budgets for planning and control
  • Analyze standard costs and related variances.
  • Evaluate responsibility accounting, performance evaluation, and transfer pricing
  • Define quality costing and discuss philosophical approaches
  • Define and explain the conceptual framework of accounting
  • Differentiate and evaluate capital investment methodologies
  • Analyze ethical issues within a managerial accounting/business framework
  • Demonstrate a deeper understanding of the material through completion of an honors assignment

CSLOs

  • Identify elements of cost for a business and explain and analyze how costs are allocated and assessed for various users. Compare and contrast the cost acct system for a manufacturer, merchandiser and service firm and distinguish the differences and similarities between financial reporting and cost accounting and utilize npv and irr for evaluating the financial viability of a business decision.

Outline

  1. Recognize management accounting information as a creator of value
    1. Describe the role or management accounting in organizations
    2. Explain the differences between management accounting and financial accounting
    3. Discuss how management accounting creates value for organizations
    4. Utilize net present value concepts in evaluating capital investment proposals for a firm
  2. Analyze cost concepts and the cost assignment process
    1. Describe a management accounting information system and how it relates to other financial reporting forms
    2. Demonstrate the cost assignment process
    3. Prepare the income statements for manufacturing and service organizations
    4. Define tangible and intangible products and explain why the differences
    5. Analyze the relationship between cost drivers and cost behavior
    6. Evaluate traditional and contemporary management accounting systems
  3. Analyze cost behavior and the role of resource usage in understanding cost behavior.
    1. Describe and evaluate cost behavior and the role of resource usage
    2. Analyze and separate cost into their fixed and variable components using the high-low method, the scatterplot method, and the method of least squares
    3. Evaluate the reliability of a cost formula
    4. Assess the use of managerial judgment in determine cost behavior
  4. Compare and contrast the cost accounting system of the service, merchandising and manufacturing firms.
    1. Differentiate the cost accounting systems of service, merchandising and manufacturing firms
    2. Discuss the interrelationship of cost accumulation, cost measurement, and cost assignment
    3. Calculate the predetermined overhead rate and assign overhead to production
    4. Differentiate between job-order and processing costing
    5. Illustrate the cost flows associated with job-order and process costing
    6. Explain equivalent units and their role in process costing
  5. Assess the departmental cost allocation process
    1. Distinguish between the support department and producing departments
    2. Explain how and why support costs are assigned to producing departments
    3. Calculate charging rates and distinguish between single and dual rates
    4. Describe how costs are assigned to activities
  6. Examine activity based costing
    1. Identify and analyze how traditional cost systems may produce distorted costs
    2. Demonstrate how activity based cost systems can produce more accurate costs
    3. Determine how activities are classified into homogeneous cost pools
    4. Explain how costs are assigned to activities
  7. Recognize strategic cost management, lifecycle cost management and Just In Time
    1. Explain strategy cost management and how it can be used to create a competitive edge
    2. Explain life cycle cost management and how it can be used to maximize profits
    3. Describe the effect Just in Time has on cost traceability and product costing
  8. Calculate break-even, evaluate cost volume profit relationships, and compare variable and absorption costing
    1. Calculate the number of units sold to break even and earn a profit
    2. Calculate the revenues require to break even and earn a targeted profit
    3. Explain the impact of risk, uncertainty, and changing variables
    4. Describe the impact of activity based costing on cost volume profit analysis
    5. Explain the differences between variable and absorption costing and calculate the impact on income when inventory levels fluctuate
  9. Apply relevant costing and tactical decision making
    1. Describe and explain the tactical decision making model
    2. Define and explain the concept of relevant costs and revenues
    3. Explain the purpose of the activity resource usage model
    4. Apply the tactical decision making concepts in a variety of business situations
  10. Recognize and describe the use of budgets for planning and control
    1. Define budgeting and discuss its role in planning, controlling, and decision making
    2. Prepare an operating budget
    3. Identify the components of a financial budget and prepare a cash budget
  11. Analyze standard costs and related variances.
    1. Explain how standards are set and why standard cost systems are adopted
    2. Describe the basic concepts underlying variance analysis and explain when variances should be investigated
  12. Evaluate responsibility accounting, performance evaluation, and transfer pricing
    1. Define responsibility accounting and describe the characteristics of the responsibility center
    2. Explain the advantages of decentralization
    3. Calculate return on investment, residual income, and economic value added
    4. Describe process value analysis and explain its role in responsibility accounting
    5. Discuss methods of evaluating and rewarding managerial performance
    6. Discuss the role and transfer pricing and methods of setting transfer prices
  13. Define quality costing and discuss philosophical approaches
    1. Define quality control and discuss philosophical approaches
    2. Prepare quality control report
    3. Explain why quality cost information is needed and how it is used
    4. Prepare quality performance reports
  14. Define and explain the conceptual framework of accounting
    1. Identify the key items of the conceptual framework
    2. Describe the basic objectives of financial reporting
    3. Discuss the qualitative characteristics of accounting information and elements of financial statements
    4. Identify basic assumptions used by accountants
    5. Identify the basic principles of accounting
    6. Identify the two constraints in accounting
    7. Explain the accounting principles used in international operations
  15. Differentiate and evaluate capital investment methodologies
    1. Analyze capital investments using the average rate of return method
    2. Analyze capital investments using the cash payback method
    3. Analyze capital investments using the net present value method
    4. Analyze capital investments using the internal rate of return method
    5. Compare the effectiveness of capital investment methods that use present values with methods that do not consider present values
  16. Analyze ethical issues within a managerial accounting/business framework
    1. Analyze and discuss ethical issues throughout the business cycle
    2. Analyze and discuss current managerial accounting topics in light of ethical issues
  17. Demonstrate a deeper understanding of the material through completion of an honors assignment
    1. Execute more analytical and challenging case work, research, and/or report generation.
    2. Recognize and explain the interdisciplinary relationship of the material with that of other aspects of business management.
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