Studies the generation and analysis of accounting information and its use by managers as they engage in planning, control, and decision-making activities in business and non-business organizations. Topics include product costing, cost-volume-profit analysis, profit planning, variance analysis, and relevant costs for decision making.
- Explain the role of managerial accounting in the business information system.
- Explain and calculate the assignment of costs to cost objects at a basic level.
- Define cost behavior for fixed, variable, and mixed costs, and apply basic cost-volume-profit analysis to make projections.
- Demonstrate knowledge of the basic budgeting process and discuss its role in the management responsibilities of planning, control, and decision making.
- Describe the basic concepts underlying variance analysis and calculate variances for direct costs of production.
- Discuss basic methods of performance evaluation in decentralized organizations.
- Apply relevant cost and revenue analysis to decision making in a variety of organizational situations at a fundamental level.
- Apply time value of money concepts to capital budgeting decisions at a basic level.
Wild, Shaw & Chiappetta (22nd Ed.) (2015). Fundamental Accounting Principles. McGraw-Hill/Irwin, New York, NY.