In MGT 711 Managerial Accounting, you’ll get an introduction to accounting and its application to modern business. Focus throughout the course is placed on managerial responsibilities, the role of the manager as a knowledgeable user of accounting information, as well as the preparation of accounting reports and their intelligent use.
Specific financial accounting topics covered during the course include, the principal financial statements, the elements and accounting principles underlying those statements, and the use of financial accounting information to evaluate and make informed business decisions.
Coursework is designed for evaluation and methodology. Here are examples of some assignments you will complete as part of MGT 711 Managerial Accounting.
- Respond to real-world case study questions with a well-formulated thesis that is insightful, thoughtful, and analytical.
- Complete both team and individual responses to specific research topics on the Class Results Discussion Forum.
- Take weekly comprehension quizzes to check your knowledge of the textbook material.
Each week of this course focuses on a different theme. Your group discussions and coursework will align with the week’s theme as well as its primary objectives. Weekly themes and course material are subject to change based on professor.
Week 1 – Managerial Accounting Overview and Strategy and Management Accounting
During the introduction week, you’ll learn the role of management accountants in an organization. In addition to identifying basic cost concepts, like lean production and the theory of constraints, you’ll be able to:
- Identify the three basic manufacturing cost categories and distinguish between product costs and period costs.
- Prepare an income statement including calculation of cost of goods sold and a schedule of cost of goods manufactured.
- Determine the difference between variable costs and fixed costs, and establish the difference between direct and indirect costs.
Week 2 – Managerial Accounting, Cost Concepts, Inventory Valuation Methods, and Job Order Costing
In week two, you’ll examine the relationships between cost types and how these differences are translated into job costing and financial statements. Beyond mastering cost concepts and behavior, you’ll learn to:
- Analyze a mixed cost using the high-low method.
- Distinguish between process costing and job-order costing.
- Prepare an income statement using the contribution format.
- Compute predetermined overhead rates and explain use in the costing process.
- Apply overhead costs to jobs using a predetermined overhead rate.
- Determine underapplied or overapplied overhead.
- Use the direct method to determine costs of goods sold.
Week 3 – Cost Volume Profit and Variable Costing
Throughout week three, you’ll understand how to build and use a key managerial financial and marketing tool based on product cost, pricing, sales, and profit. Additionally, you’ll learn to:
- Explain how changes in activity affect contribution margin and net operating income.
- Understand a cost-volume-profit (CVP) and profit graphs.
- Use the contribution margin ratio to compute changes in contribution margin and net operating income.
- Determine the level of sales needed to attain a target profit and the break-even point.
- Illustrate how variable costing differs from absorption costing.
- Reconcile variable costing and absorption costing net operating incomes.
- Prepare a segmented income statement that differentiates traceable from common fixed costs.
Week 4 – Activity-Based Costing and Management Decision Making
During the midpoint of the course, you’ll explore the activity-based costing and management model, along with a company’s value chain, so you can:
- Explain how activity-based management and costing differ from a traditional costing system.
- Prepare an analysis showing whether a product line or business segment should be added or stopped.
- Create a make or buy decision.
- Craft an analysis showing whether a special order should be accepted.
- Compile an analysis showing whether joint products should be sold at the split-off point.
Week 5 – Manufacturing Overhead Allocation; Traditional versus Activity-Based
As you progress to week five, you’ll analyze the traditional, volume-based overhead cost allocation versus the activity-based costing method to determine which is most appropriate. You’ll learn to:
- Examine the strategic implications of overhead cost allocations.
- Describe the nature and components of manufacturing overhead costs.
- Explore and assimilate the basics of overhead allocation.
- Rank investment projects in order of preference.
- Compare and contrast traditional versus activity-based overhead allocation methods and the impact.
- Evaluate the technical, behavioral, and cultural attributes of overhead cost allocation methods.
Week 6 – Lean Manufacturing, Profit Planning, and the Budgetary Process
In week six, you’ll compare how mass and lean production methods impact an organization’s structure and its management accounting system. Beyond examining key steps in the capital budgeting process, you’ll learn to:
- Prepare a sales budget, including a schedule of expected cash collections, production budget, direct materials budget, expected cash disbursements for purchases of materials, direct labor budget, manufacturing overhead budget, selling and administrative expense budget, cash budget, budgeted income statement and balance sheet, and a flexible budget.
- Create a report showing activity variances, revenue and spending variances, performance, and a flexible budget with more than one cost driver.
- Examine common errors made in preparing performance reports based on budgets and actual results.
Week 7 – Standard Costs - Theory of Constraint and Throughput, Managing and Measuring Capacity
Throughout this week, focus is on standard costs, the theory of constraints (TOC), and throughput and capacity management. You’ll learn to:
- Explain how direct materials standards and direct labor standards are set.
- Compute the direct materials quantity and price variances, direct labor efficiency and rate variances, variable manufacturing overhead efficiency and rate variances, and explain their significances.
- Describe TOC and demonstrate the impact of throughput on management accounting practices, including the management of bottleneck in the manufacturing process.
- Compare throughput and traditional accounting systems.
- Determine the strategic implications and complications in measuring and managing capacity.
Week 8 – Target Costing - Measuring and Managing Quality Costs
During the last week of the course, you’ll explore how companies leverage target costing to gain a competitive advantage in the market, along with ways to ensure that products or services meet customers’ expectations. You’ll be able to:
- Describe target costing process and evaluate the need for such a tool.
- Determine target costs for products and how cost reduction occurs in practice.
- Identify cultural, behavioral, and technical implications of target costing.
- Explain the nature and reasoning for measuring quality costs in the modern organization.
- Illustrate the strategic implications of quality costs.
To learn more about MGT 711 Managerial Accounting , or other courses in the online MBA program from the University of Saint Mary, call 877-307-4915 to speak with an admissions advisor or request more information.