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Course Name: ACC235 Management Accounting I

Credit Value: 5
Prerequisite Course: ACC140

Course Description 1.5 Define the fundamental functions of

Students will be introduced to the basic management in terms of:
management accounting techniques used by a. Planning.
contemporary business to monitor operational b. Organizing.
efficiency. Students will review several cost c. Controlling.
behaviour analysis techniques used in setting 1.6 Describe the advantages and
standards and other budgetary control disadvantages of centralization and
requirements. Students will also perform decentralization.
cost/volume/profit analysis and will develop both 1.7 Describe the role of professional
profit and cash flow projections and budget/actual accountants in management and the
analysis of performance. code of ethics guiding CMAs, CGAs and
CAs in industry.

PLAR Information 2. Describe and compute cost behaviour

Students will be introduced to the basic within a relevant range of activity.
management accounting techniques used by 2.1 Distinguish between cost and expense
contemporary business to monitor operational from an accounting point of view.
efficiency. Students will review several cost 2.2 Describe how costs behave in
behaviour analysis techniques used in setting relationship to a relevant range.
standards and other budgetary control 2.3 Distinguish between variable and fixed
requirements. Students will also perform costs, and committed and discretionary
cost/volume/profit analysis and will develop both fixed costs.
profit and cash flow projections and budget/actual 2.4 Distinguish between step-variable costs
analysis of performance. and mixed (or semi-variable) costs.
2.5 Prepare and interpret a scatter chart
and best fit line.
Course Learning Outcomes 2.6 Compute the fixed and variable
Upon completion of this course, the student will components of mixed costs by the use
have reliably demonstrated the ability to: of the high low method.
2.7 Compute least-squares regression using
1. Define the role management accounting Excel software and interpret the results
plays within an organization and the using: y=a+bx.
management accountant’s contribution 2.8 Describe the advantages and
to operational efficiency. disadvantages of the scatter chart
1.1 Describe the difference between method, the high-low method, and the
managerial and financial accounting. least squares method.
1.2 Develop an organizational chart for a
typical profit-oriented business and 3. Prepare financial statements for a
describe the fundamental differences manufacturing company.
between the objectives of line and staff 3.1 Define product costs and period costs.
functions. 3.2 Distinguish among direct materials,
1.3 Describe the role of a management direct labour, and factory overhead.
accountant and his/her functional 3.3 Prepare journal entries to demonstrate
relationship with other members of the the accounting cycle of a manufacturing
management team. firm.
1.4 Define responsibility accounting and
describe its role in management of a
typical business.

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ACC235 Management Accounting I Canadore College of Applied Arts and Technology

3.4 Prepare the following from an adjusted 6. Allocate revenue and expenses to
trial balance for a manufacturing responsibility centres for performance
company: measurement and evaluation.
a. Schedule of Cost of Goods 6.1 Define responsibility accounting and
Manufactured. describe the process.
b. Income Statement. 6.2 Distinguish among cost centres, profit
c. Balance Sheet. centres, and investment centres.
3.5 Account for under-and over-applied fixed 6.3 Distinguish between direct and indirect
and variable overhead. expenses.
6.4 List criteria for evaluation of
4. Describe the general process and purpose management performance.
of budgeting and prepare basic static and 6.5 Evaluate the return on investment for
flexible budgets. investment centres.
4.1 Define and describe the general purpose 6.6 Describe transfer prices under various
of budgeting. conditions.
4.2 Describe the components of the
budgeting process: 7. Prepare break-even charts and describe
a. Planning. the advantages and limitations of "cost
b. Communicating. volume profit (CVP) analysis."
c. Coordinating. 7.1 Describe the uses of CVP analysis in
d. Feedback. decision making.
4.3 Describe the concept of zero-based 7.2 Apply CVP analysis to single and multiple
budgeting and its advantages and products using equation and contribution
disadvantages. margin techniques.
4.4 Prepare the basic types of budgets: 7.3 Compute operating leverage.
a. Sales. 7.4 Prepare a break-even chart.
b. Production. 7.5 Apply CVP analysis to specific
c. Purchasing. management problems such as sales
d. Manufacturing. price or costs.
e. Selling and administrative expenses. 7.6 Describe the assumptions when using
f. Cash. CVP analysis.
g. Income Statement.
h. Balance Sheet. 8. Prepare the required accounting records
to maintain a Job Order and Process
5. Describe and show the advantages and Costing system.
disadvantages of actual and standard cost 8.1 List and describe the differences and
systems. similarities of Job-Order costing and
5.1 Describe the advantages of flexible Process Costing.
budgets over static budgets. 8.2 Describe the flow of materials, labour,
5.2 Prepare a flexible budget and and overhead costs in a Job-Order and
performance report. Process Costing system.
5.3 Illustrate the differences between actual 8.3 Prepare the necessary journal entries for
and standard cost systems. the operation of a Job-Order costing
5.4 Describe the major methods of setting system.
standard costs. 8.4 Describe the process and challenges of
5.5 Analyze variances for: allocating costs in a Process Costing
a. Direct material. environment.
b. Direct labour.
c. Variable and fixed overhead. 9. Describe Activity-Based Costing (ABC)
and determine the requirements for
designing such a system for a
manufacturing organization.
9.1 Demonstrate how plant-wide and
departmental overhead rates are set.
9.2 List and describe the benefits and
limitations of Activity-Based Costing.
9.3 Describe the hierarchical classification of
activities inherent with ABC systems.

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ACC235 Management Accounting I Canadore College of Applied Arts and Technology

Evaluation Strategy

Grading System

A+ Honours 90-100%
A+ 85-89% B+ 75-79% C+ 65-69% D+ 55-59% R Repeat U Unsatisfactory
A 80-84% B 70-74% C 60-64% D 50-54% S Successful I Incomplete

*For a complete detailed description please refer to the Academic Calendar.

Student Success
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Counselling helps with academic, career and personal/crisis issues.
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learning disabilities.
Health Centre provides services to you in case of illness.

Waiver of Responsibility
Every attempt is made to ensure the accuracy of this information as of the date of publication.
The college reserves the right to modify, change, add, or delete content.

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