Accounting: An Overview
Steps in the planning and control cycle and what role accounting plays in each
step (shown in class).
Comparison of financial accounting versus managerial accounting.
1: Managerial Accounting and Cost Concepts
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.
between the following types of cost behaviors: variable, fixed, mixed,
step variable, step fixed, curvilinear, etc. and be able to match the description of a cost behavior to its graphical
respresentation like the problem distributed and cover in class.
Understand the concept of relevant range and how the
following variable, fixed, and mixed costs behave at both the total and per unit levels.
Know the mathematical representation
of the cost equation: Y = a + bX.
Be able to calculate a and b in
the above cost equation using the high-low method.
Identify the advantages and
disadvantages of the following cost estimation techniques: high-low,
scattergraph, and least-squares methods (comparison table distributed in class).
Know the format of the contribution margin income statement and its
2: Job-Order Costing
Type of manufacturing firms that would use a job order costing system
versus process costing system.
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.
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 in debit/credit format in a job order costing
including the disposition of overapplied or underapplied manufacturing
overhead to cost of goods sold.
CHAPTER 3: Activity-Based Costing
Benefits and costs of maintaining an activity-based costing system.
Identification of activity level: unit, batch, product, facility.