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|Course Number:||ACCTING 7000|
|Course Name:||Managerial Accounting (Online)|
|Course Description:||An overview of fundamental accounting concepts as they apply to financial reporting and managerial decisionmaking. The course covers the development of income statement and balance sheet information, the use of operational data in profit planning, the interpretation of variances, budgeting, and project costing approaches.|
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.
The primary outcome of this course is to provide students with the ability to apply accounting concepts to improve project leadership through better decision-making. Specific course outcomes include the abilities to:
- Read and interpret company financial accounting statements.
- Analyze company financial accounting statements to evaluate performance.
- Identify project opportunities through financial statement ratios, trending, and benchmark comparison.
- Build a project budget using fixed, variable and mixed cost types.
- Develop a cost/benefit analysis to guide project results using capital decision making techniques.
- Assess project results by recording project costs and comparing those results to the project budget.
- Explain project results including financial results to organization leadership.
Accounting provides a basis for reporting company results. Accounting can also provide a basis for reporting project results. The connection between accounting and project management begins by understanding accounting terminology and principles. This background provides a project manager the ability to discuss project financial results with business leaders. Even more important, the ability to evaluate company financial results will provide the project manager effective tools to identify improvement opportunities that may lead to project initiation.
The balance sheet captures current assets, long term assets, liabilities and equity. The business transactions that impact these accounts can also impact the income statement. By understanding these transactions and these two financial statements, a project manager is better able to understand a project’s impact on the company and better able to communicate project results with company leadership. A project manager will learn that part of developing project solutions includes understanding the financial impact as captured in this unit.
Financial statements were introduced in Unit 1. The income statement and statement of cash flow provide the basis to analyze company performance. The income statement provides the income generated from operations. Projects will often have an impact on the income results of a company either by generating sales or impacting expenses. The statement of cash flows provides the cash generated or used by business activities. Projects can be a primary use of cash. Projects also use the concept of cash flow to determine the return on investment.
Financial statement analysis was also introduced in Unit 1. Financial statement analysis provides the ability to evaluate company performance. The additional ratios and analysis techniques will assist the project manager in understanding the impact changes will have on a company. These techniques also create a deeper understanding of the overall financial results which can improve communication with company leadership.
The first three units created an accounting foundation that provides an understanding of financial statements, highlights the impact of general business transactions, and establishes a method to evaluate company results through financial analysis. This accounting foundation is critical to take the next step of understanding how to manage operations and company performance on a day-to-day basis using managerial (or management) accounting.
Managerial accounting is central to a company’s planning and controlling activities whether those activities be for the organization as a whole, for individual departments, or for individual projects. Managerial accounting focuses primarily on costs and the movement of cost in changing company conditions. This unit provides a strong foundation to costs, cost movement, and analyzing business performance using alternative income statement methods.
To properly manage a project, several cost techniques should be considered. The first technique is initial capital or project evaluation. This evaluation happens before the project is initiated and confirms an organizations choice of projects for execution. The important step in this evaluation is the identification of cash flows generated or used by the project. The second technique is budget preparation. A budget sets the plan for a project in financial terms. The final technique is using the budget to control expenses. By evaluating actual costs against the original plan represented by the budget, an organization can better control costs and make adjustments as necessary.
The course will be graded using the following grading scale.
A: 90% or more of possible points
B: 80% - 89% of the possible points
C: 70% - 79% of the possible points
D: 60% - 69% of the possible points
F: 59% or fewer of the possible points
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