Accounting Issues for Managers

Course Number: ACCTING 3000
Course Name: Accounting Issues for Managers (Online)
Course Description:    The interpretation and analysis of accounting information for internal and external decisions. Includes topics of internal control system, individual income tax preparation, and key popular cost management techniques.
Prerequisites:    Grade of "C-" or better in ACCTING 2020. 
Level: Undergraduate
Credits: 3
Format: Online  (This course is also offered in print.)
Program: Bachelor of Science in Business Administration

Registration Instructions

NOTE: The information below is representative of the course and is subject to change.  The specific details of the course will be available in the Desire2Learn course instance for the course in which a student registers.

Additional Information

Learning Outcomes

Accounting information affects individual and organizational decisions. All students majoring in business need an understanding of the uses of accounting information in making decisions. Specifically, upon successful completion of this course, you should be able to

  • Understand the role of accounting information in organizational and individual decision making.
  • Reinforce your knowledge of financial reports and perform financial analysis of financial statements.
  • Understand the importance of an internal control system in an organization.
  • Research the impact of the Sarbanes-Oxley Act of 2002 (SOX) on public companies and their auditors.
  • Discuss the debate over the impact of adopting the International Financial Reporting Standards (IFRS) in the preparation of financial statements in the U.S.
  • Prepare both short-term and long-term budgets, specifically cash budgets.
  • Evaluate capital investment decisions using various techniques.
  • Appraise the performance of investment centers and their managers.
  • Discuss evolving managerial themes such as activity-based management, just-in-time, nonfinancial performance measures, and total quality management.
  • Identify the data needed to prepare an individual tax return and understand various types of taxes.
  • Appreciate the consideration of income tax issues while making a business decision.
Unit Descriptions
Course Organization and Assignment Descriptions

Unit 1: Overview of Financial Accouting
Overview
Unit 1 starts with the review of the basic cost accounting concepts, including the classification and behavior of costs, types of manufacturing costs, job order costing. This review is followed by a detailed discussion on fixed and variable costs and the application of these concepts in the managerial decision making.

Outcomes
Upon completion of this unit, you should be able to

  • Identify the financial statement(s) wherein specific information is found.
  • Prepare the income statement, the statement of stockholders’ equity, the balance sheet, and the statement of cash flows.
  • Analyze financial statements using various tools, including ratio analyses, and assess the performance of a company with respect to profitability, solvency, and such other criteria.

Unit 2: Understanding Basic Cost Accounting Concepts for Managerial Decision Making
Overview
Unit 2 serves three main purposes: Firstly, it discusses various methods of common or fixed costs allocation to various products and services; secondly, it illustrates the use of accounting information to plan and control focusing mainly on budgeting process, including capital budgeting; thirdly, this unit discusses the use of costs/benefit analysis and incremental analysis in managerial decision making.

Outcomes
Upon completion of this unit, you should be able to

  • Differentiate between the purpose and scope of financial and managerial accounting.
  • Understand the types of costs that are incurred in making a product or offering a service.
  • Distinguish between product and period costs and how product costs impact the three types of inventory costs.
  • Describe the flow of product costs in a manufacturing company’s accounts.
  • Prepare a schedule of cost of goods manufactured and a statement of cost of goods sold.
  • Understand the differences between the job order and process costing systems.
  • Understand the relationships between the cost and the level of an activity, and explain the difference between direct (variable) cost and fixed costs.
  • Understand the concept of contribution margin and explain the role of cost-volume-profit (CVP) analysis and its role in profit planning and managerial decision making.
  • Explain how changes in activity affect contribution margin and operating income.
  • Understand the difference between variable and absorption costing methods and prepare income statements using variable costing and absorption costing.
  • Describe activity-based costing and the factors that led to its emergence.

Unit 3: Budgeting, Performance Evolution and Decision Making
Overview
Companies prepare budgets and plan their activities to achieve the desired level of profits. Actual revenues, costs, and expenses are compared against budgeted revenues, costs, and expenses to help managers understand performance at the end of the period and suggest process improvements, if needed. Managers also are called upon to make capital investment decisions, using various techniques to evaluate investment decisions.

Managers frequently must decide what products to sell— in which markets, at what prices, and in what quantities. They are faced with making decisions such as whether to make parts needed for the manufacturing process or to buy them from a supplier, to continue or discontinue producing a product, and whether to accept or reject a special order.

It is important to evaluate the performance of various units of a company as the company grows and becomes more decentralized. By doing so, a company can assess the effectiveness of past decisions, which will enhance and improve the quality of future decisions.

Outcomes
Upon completion of this unit, you should be able to

  • Understand why organizations use a budget and the processes involved in its preparation.
  • Understand various types of budgets.
  • Prepare a master budget, including various operating budgets.
  • Evaluate different long-term investment decisions using techniques such as net present value and internal rate of return (IRR).
  • Analyze and recommend various operating and strategic decisions using incremental analysis.
  • Compare and evaluate the performance of various responsibility centers within a large/decentralized organization.
  • Understand the criteria and decision rules applied when units buy and sell products from each other.

Unit 4: Federal Income Tax
Overview
All citizens, individuals, and businesses have to deal with the incidence of income tax. Taxpayers make decisions and choices which impact their current and future cash flows, so an understanding of federal income tax laws will help them better manage their cash flows. And, there are taxes other than income tax which also may impact the timing and the pattern of cash flows to taxpayers. The basic knowledge of such other forms taxes would also be helpful in planning for the future.

Outcomes
Upon completion of this unit, you should be able to

  • Have a basic understanding of different types of taxes, including gift and estate taxes, sales tax, property tax, state income tax, and federal income tax.
  • Understand what types of entities are subject to income tax.
  • Choose items to be included in gross income for tax purposes and types of income which are exempted from income tax.
  • Identify the items that adjust (decrease) income and are used in arriving at adjusted gross income.
  • Calculate adjusted gross income for tax purposes.
  • Compile an individual income tax return, incorporating different sources of income and deductions.
  • Understand the effect of income tax on businesses and the forms used by corporations and partnerships to report their taxable income.
  • Understand the importance of careful tax planning.

Grading Criteria for Activities

Assignment Possible Points
Exams (4) 365 points
Individual Homework (12) 61 points
Individual Projects (2) 19 points
Group Projects (2) 31 points
Discussions (8) 24 points
Total: 500 points

Grading Scale

A 94% - 100%
A- 90% - 93%
B+ 85% - 89%
B 80% - 84%
B- 77% - 79%
C+ 75% - 76%
C 71% - 74%
C- 68% - 70%
D+ 65% - 67%
D 60% - 64%
F 0% - 59%

*This course has proctored exams.   If you do not have a proctor on file with the Distance Learning Center, you must submit a proctor nomination form at the time you register for this course.  For proctor information visit our website.

 

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