PRINCIPLES OF ACCOUNTING III
Introduces the theory of cost accounting and an analysis of accounting data as a part of the managerial process of planning, decision-making, and control. Emphasis is given to job order, process and standard cost accounting data, and the preparation and use of budgets and internal control reports necessary for making economic decisions for manufacturing businesses.
- Define terms and identify/distinguish between financial and management accounting concepts; service, merchandising, and manufacturing companies; direct, indirect, and product costs; prepare financial statements for various types of companies; and apply the concept of business ethics to business situations.
- Define terms and identify/distinguish between process and job costing; use a job order cost system to account for materials, labor, and manufacturing overhead; calculate the value of work-in process, finished goods inventory, and cost of goods sold using a job ordercosting system; journalize appropriate entries; and prepare financial statements for a manufacturing company.
- Define terms and identify concepts relating to process costing; follow the flow of costs using equivalent units through the process using the LIFO, FIFO, and weighted average methods; and prepare appropriate reports.
- Define terms and identify concepts relating to cost behavior patterns and sales mixes; using cost-volume profit analysis calculate the break even point, sales needed to earn a target income and margin of safety; and prepare income statements using the absorption and contribution approach.
- Define terms and identify concepts relating to forecasting, budgets, performance reports, and responsibility centers; prepare an operating budget using sensitivity analysis, a financial budget and a performance report; and allocate service department costs to production departments.
- Define terms and identify concepts relating to flexible budgets, standard costs and variances, prepare a flexible budget, income statement performance report and standard cost income statement, calculate and analyze standard cost variances.
- Define, identify and use Activity Based Costing (ABC), Just-in-Time (JIT) Costing, Continuous Improvement and Quality Management to prepare reports and analysis to assist managers in making decisions.
- Define, identify and use the concept of Relevant information and Capital Budgeting tools, Payback, Accounting Rate of Return and Discounted Cash Flow Models to make and analyze reports to assist managers in decision making to include short term decisions such as Special Sales Orders, Make or Buy, Outsourcing, etc.