10697 Managerial Accounting for Students of Accounting 1

Credits: 6 intermediate credits in Accounting

Prerequisite: Passing the exemption examination in “Bookkeeping and Commercial Calculations”2

Author: Joshua Livnat

Objectives: To familiarize students with the business entity costing system; To acquaint students with relevant data from the costing system required for making various decisions; To use costing data for managerial control purposes.

Topics: Defining and classifying costs – the objectives of managerial accounting, defining and classifying costs; The costing system – description of the basic costing system; Process costing system – description of a complex costing system; Allocating indirect costs: service department – responsibility centers in the organization; Shared costs and shared products – cost allocation problems; Equilibrium point analysis – the relationship between cost, price and sales volume; Contribution costing and absorption costing – allocating fixed costs to inventory; Relevant costs for decision making – costing data required for short-term decisions; Budgeting – planning future business activities; Standard costing system – analyzing costing deviations; Managerial control – business activity control systems; Activity-based costing (ABC).

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1There is some overlap in the content of this and other courses. For details, see Overlapping Courses.

2Beginning in Fall 2011, students can take the exemption exam no more than 4 times. A fee is charged for registration for the examination.