EXC 3442 Managerial Accounting
EXC 3442 Managerial Accounting
Managerial accounting is a fundamental course regarding internal management with theory, concepts and methods relating to use of information and design of systems to aid in planning, controlling, decision making, evaluating performance and reporting financial results to company leadership.
During the course, students should have acquired:
- Knowledge of concepts within the management accounting discipline.
- Understanding of the purpose of financial versus managerial accounting.
- The model of cost-volume-profit analysis.
- Broad understanding of how to define key cost categories, and how different ways of grouping costs can effect corporate decisions.
- Knowledge of the consepts of the opportunity cost and sunk cost.
- Knowledge of the distinction between job-order costing and process costing.
- The principles of cost-volume-profit analysis.
- A deep understanding of how pricing decisions affect profitability.
After completing the course, students shall be able to:
- Characterize costs and differentiate what costs should be included for a range of corporate decisions.
- Argue which costs and revenues are relevant to decision making.
- Compute cost of goods manufactured, allocate costs, reconcile costs and produce total costs for products/activities/departments.
- Apply the theory of cost-volume-profit analysis to example problems.
- Differentiate between absorption and variable costing and solve problems.
- Calculate standard costing variances and assess the root cause.
- Calculate the profit maximizing price, break-even point, and elasticity for various scenarios.
- Justify capital investment decisions.
- Create budgets and statements of profit and loss, balance sheets and cash flows for management’s analysis.
Students must be capable of critical thinking to debate any specific assumptions underlying management accounting concepts used in their analysis. Students must be adept at combining knowledge and applied skills to solve complex problems.
- Management accounting, planning, directing, and controlling
- Comparison of financial and managerial accounting
- Cost terms, concepts, and classifications
- Cost behavior: analysis and use
- Job order costing
- Process costing
- Cost-volume-profit relationships
- Profit reporting under variable costing and absorption costing
- Performance measurement
- Relevant costs for decision making for adding and dropping product lines, make or buy decisions, special orders, pricing, and constrained resources
- Profit planning and budgeting
- Standard costs and variance analysis
- Capital investment decisions
The course will include/entail a combination of active learning activities including mini-lectures, in class group exercises, and plenary tutorials to illustrate appropriate accounting resolutions. Excel will used during the course to solve exercises.
Required work (mandatory quizzes)
There are eight mandatory quizzes during the semester; students must earn approval on five of the quizzes in order to qualify to sit for the course exam. The quizzes are short, limited exercises that the students should be able to answer in about 1,5 hours if they have followed the recommended work schedule. Students who have not adequately prepared must allow more time. Quizzes will be submitted through itslearning.
Students earn approval on the mandatory quizzes by achieving a minimum score of 50%. Quiz requirements will be discussed in class and information will be presented on itslearning. All quizzes will have a minimum of three attempts before the deadline. Quiz deadlines will be discussed during class time and published on itslearning.
Students that have not earned approval on five of the mandatory eight quizzes must retake the quizzes during the next scheduled course.
Feedback to the students will be given:
- In class and on itslearning. Students will be told which assignments are to be completed for the next lecture on itslearning. The lecturer will review some of these assignments in class. Feedback will consist of the students comparing their solutions with the one lecturer explains.
- Scores and detailed solutions for the mandatory quizzes will be automatically available through itslearning.
Software tools
A basic understanding of and ability to use Excel spreadsheets is required. Please note: it is recommended that students use non-Mac operating system computers for the course. Excel has more limited functionality on Mac platforms.
Re-sit examination
Students must earn approval on five out of the eight mandatory quizzes if they wish to sit for the exam; those students that do not meet this requirement must re-take the quizzes during the next scheduled course and earn approval identical to requirements for students currently enrolled in the course.
Students who have not passed the written examination or who wish to improve their grade may re-take the examination during the scheduled exam period.
Higher Education Entrance Qualification
Covid-19
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
EXC3452, "Financial Reporting and Analysis"
| Mandatory coursework | Courseworks given | Courseworks required | Comment coursework |
|---|---|---|---|
| Mandatory | 8 | 5 | Students must earn approval on five out of the eight mandatory quizzes in order to qualify to sit for the course exam. |
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 100 Grouping: Individual Support materials:
Duration: 4 Hour(s) Exam code: EXC34421 Grading scale: ECTS Resit: Examination every semester |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 40 Hour(s) | |
Prepare for teaching | 60 Hour(s) | Preparation for lectures and plenary tutorials (approximately 1,5 hours per lecture hour) |
Submission(s) | 15 Hour(s) | Mandatory 8 tests |
Examination | 85 Hour(s) | Exam incl. preparations |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.
Students who have not passed the written examination or who wish to improve their grade may re-take the examination during the scheduled exam period.