Description:

Upon completion of this course, the student should be able to develop and use accounting information as an instrument of management control. Students will recognize needed information, determine where it can be obtained and decide how this information can be used by managers to plan, control and make decisions. Material covered includes financial statement analysis, cost application and budgeting reports management. 3 hrs./wk.

Supplies: Refer to the instructor’s course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Define different types of organizations, their objectives and the manager’s need for information.
2. Recognize cost behavior patterns.
3. Calculate cost-volume-profit analysis and breakeven analysis.
4. Calculate inventory valuation under the direct cost concept, cost variances, flexible budgets and segmented reporting.
5. Define responsibility accounting.
6. Calculate rate of return, residual income, and transfer pricing.
7. Determine capital budgeting decisions using net present value, internal rate of return, payback and simple rate of return.
8. Prepare organizational cash flow statements.
9. Analyze financial statements to determine profitability of the organization.

Content Outline & Competencies:

I. Cost Terms and Concepts
   A. Organizational structure
      1. Discuss the planning and control model
      2. Differentiate line/staff relationships
      3. Define the accounting department structure
      4. Review accounting information needs for both financial and
managerial activities
   B. Manufacturing accounting
      1. Define product and period costs
      2. Prepare a schedule of cost of goods manufactured
      3. Define various cost classifications.

II. Organization Control and Decision Making
   A. Determining and evaluating cost behavior
      1. Define variable costs, fixed costs and mixed costs
      2. Analyze mixed costs using various methods
   B. Evaluating cost-volume-profit relationships
      1. Use contribution margin analysis
      2. Define cost structure
      3. Calculate breakeven analysis
      4. Calculate sales mix analysis
   C. Determining cost allocation
      1. Use segmented reporting
      2. Prepare inventory valuation and income determination using: 
         a. Direct costing
         b. Absorption costing
   D. Organizational budget
      1. Prepare operations budget to include:
         a. Sales budgets
         b. Production budgets
         c. Cash budgets
         d. Pro-forma financial statements
      2. Make capital budgeting decisions by:
         a. Calculating net present value analysis including:
            1) Income tax considerations
            2) Depreciation tax shield
         b. Calculating payback period analysis
         c. Calculating time adjusted rate of return analysis
      3. Prepare flexible budgets 
         a. Use standard costing
         b. Analyze and evaluate the standard cost variances
         c. Account for materials, labor and overhead
   E. Control of large organizations
      1. Define responsibility accounting
      2. Calculate return on investment
      3. Calculate residual income
      4. Calculate transfer prices between divisions
   F. Other management decisions
      1. Calculate adding or dropping a product line decision
      2. Calculate make or buy decision
      3. Calculate sell or process a product further decision

III. Preparing and Analyzing Financial Statements
   A. Prepare common-size statements
   B. Calculate ratio analysis
   C. Prepare statement of cash flow

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

Minimum of four examinations
Evaluation of homework assignments
Evaluation of participation in classroom discussions
Optional projects

With the total points being distributed as follows:

  A = 90 - 100%
  B = 80 -  89%
  C = 70 -  79%
  D = 60 -  69%
  F = below 60%

Caveats: NONE

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.