SENECA COLLEGE OF APPLIED ARTS AND TECHNOLOGY
SCHOOL OF ACCOUNTING AND FINANCE

SUBJECT OUTLINE
Semester
Subject
Code
SPRING/SUMMER 2000 (001)
MANAGEMENT ACCOUNTING
ACC 533

SUBJECT DESCRIPTION: [TOP]
Accounting 533 continues the study of cost classifications and cost behavior and the use of standards for costing, managerial evaluation and financial planning. Final objectives are to provide management with relevant information for decision making. Its objectives are to analyze cost-volume-profit relationships, to determine income using segmented reporting and contribution margin, to prepare master budgets and evaluate divisional performance of various responsibility centres.

CREDIT STATUS:
One credit of the ?ACC? professional requirements of the Accounting and Finance Diploma Program. With a minimum "B" grade in this subject and in ACC 431, credit may be obtained for management accounting (MA1) in the CGA program.

PREREQUISITES: [TOP]
Cost Accounting (ACC 431) and a working knowledge of computer based spreadsheet.

LEARNING OUTCOME: [TOP]
Upon successful completion the student will be able to:
  1. Classify costs/expenses by their behaviour and analyse mixed costs using the High-Low and the Least Squares methods.

  2. Determine the volume, price, break-even before and after-taxes for single products and mixes using the contribution margin approach.

  3. Demonstrate how costs are allocated to segments of the organization and compute the segment margin.

  4. Determine the inventory values and the income under the direct costing and the full absorption costing methods and reconcile the differences.

  5. Determine target prices for products and services under various market conditions by the use of cost-plus pricing under either absorption or contribution approach.

  6. Calculate mark-up percentages needed to achieve a target ROI for products.

  7. Prepare a master budget including all supporting schedules, e.g. sales, production, material purchases, labour, and manufacturing overhead. Further include the budgeted income statement, cashflow and budgeted balance sheet.

  8. Explain how performance can be measured in cost centres, profit centres and investment centres and compute the return on investment and the residual income for investment centres.

  9. Compute internal transfer prices under the conditions of full and idle capacity.

  10. Prepare analyses of relevant costs for dropping of a product line, make or buy decisions, equipment replacements and the further processing of joint products.

  11. Allocate service department costs to other departments using the direct, step and reciprocal allocation methods.


INSTRUCTION METHODS:
Weekly: 2 periods for lecture and discussions of new material.
2 periods for review and demonstrating solutions of exercises and problems.

REQUIRED TEXT: [TOP]
MANAGEMENT ACCOUNTING, Canadian Fourth edition
Hansen, Mowen, Elias & Senkow, ITP Nelson publishers
ISBN 0-17-607283-3

REFERENCE MATERIAL: Managerial Accounting. Garrison, Chesley, Carrol. Irvin Dorsey.
Third or Fourth Canadian Edition.

OTHER READINGS: Related topics in the news will be assigned during the term.


PERFORMANCE EVALUATION:* [TOP]
    TERM: Quizzes 10%
    Spreadsheet projects 10%
    Topical Report 5%
    Mid Term Test 35%
    FINAL: Comprehensive examination 40%
    Total 100%
    Missed test or assignments are recorded as zero marks, except in case of sickness or serious family matters. There are no make-up tests.

CHEATING AND PLAGIARISM:
Refer to the Seneca Academic Policy, Section 8.7.

DISCRIMINATION/HARASSEMENT COLLEGE POLICY
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and will not be tolerated. Information and assistance are available from the Centre for Equity and Human Rights, Room 3141, Newnham Campus, 491-5050, Ext. 2078.

PROFESSORs: Douglas Stephenson Room 4113-A Ext. 2731

APPROVED BY:
CHAIR: Ron Francis


REVISED DATE:December 1999
ACC 533

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