Course Description for ACC 433 Managerial Accounting

In this course, you’ll explore managerial accounting topics for use in business decision-making. Financial topics of study include: relevant costs; balanced scorecard; value added and non-value added costs; allocations of indirect costs using direct, step, and reciprocal methods; allocating joint cost; main and by-product costing; determination of Economic Order Quantity (EOQ); accounting for spoilage; transfer pricing; performance measurement; and capital budgeting techniques.
A study of cost and managerial accounting principles and procedures used in almost every organization around the world. Included are commonly used costing techniques, budgeting preparation, and management decision making.
Prerequisite: ACC 202 (grade C or above).
Units: 4.5 Quarter Units.
Course Learning Outcomes (CLOs) (exact from National University outline):
Upon successful completion of this course, students will be able to:

Differentiate managerial accounting from financial accounting.
Differentiate between relevant and irrelevant costs/revenues in choosing among alternatives such as “make or buy”, rent or lease, etc., and understand the importance of including not only quantitative but also qualitative factors in the decision-making process.
Distinguish short-run from long-run pricing decisions including target-costing approach.
Evaluate business performance using the four perspective of balanced scorecard.
Apply the concept of “cost pools” and bases for allocation using the direct allocation, step-down allocation, and reciprocal methods, as well as accounting for joint costs, by-product costs, spoilage, rework, and scrap.
Use capital budgeting techniques such as discounted cash flows, net present value, internal rate of return, payback method, accrual accounting rate-of-return return, and sensitivity analysis to evaluate long-term investment alternatives.
Understand the Role of Budgeting.
Analyze return on investment using the DuPont method, residual income, and economic value methods to evaluate performance as an integral part of management control system.