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).

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.