PROLOGUE: Managerial Accounting and the Business Environment
Difference between line and staff positions.
Four categories of ethical conduct: competence, confidentiality, integrity, and objectivity.
You can ignore all other matieral in the prologue.

CHAPTER 1: An Introduction to Managerial Accounting and Cost Concepts
Steps in the planning and control cycle and what role accounting plays in each step.
Comparison of financial accounting versus managerial accounting.
Basic terminology related to product costing: manufacturing (product) versus nonmanufacturing (period) costs, direct materials, direct labor, manufacturing overhead, direct versus indirect costs, prime versus conversion costs, sunk versus opportunity costs, relevant versus irrelevant costs, differential costs, fixed versus variable costs.
Differences in cost behavior at both the total and per unit level for fixed and variable costs.
Inventory classification in a manufacturing setting: raw materials inventory, work in process inventory, and finished goods inventory.
Calculation of cost of goods manufactured and cost of goods sold.

CHAPTER 2: Systems Design: Job Order Costing
Type of manufacturing firms that would use a job order costing system versus process costing system.
Documentation used in a job order costing system: materials requisition form, time ticket, and, in particular, job cost sheet.
Calculation of and need for a predetermined overhead rate.
Recording all relevant entries (+/- format) in a job order costing including disposition of overapplied or underapplied manufacturing overhead to COGS.

CHAPTER 3: Systems Design: Activity-Based Costing
Benefits and costs of maintaining an activity-based costing system (illustration in class).
Identification of activity level: unit, batch, product, facility.

CHAPTER 4: Systems Design: Process Costing
Differences and similarities between a job order costing system and a process costing system: the entries (+/- format) in a process costing system are generally the same as in a job order system except that manufacturing overhead does not need to be applied based on a predetermined rate and extra entries are needed to show the transfer of the product between departments.
Preparation of a production report under the weighted average method including calculation of quantity schedule, equivalent units, cost per equivalent unit, amount to be transferred to next department or finished goods inventory, and amount to be reported on balance sheet for ending work in process inventory.