Cost and Managerial Accounting 2 FMGT 4210

Course offerings

Learning Outcomes

Upon successful completion, the student will be able to:

• Describe various methods for splitting mixed costs into their variable and fixed components.
• Use the High-Low method for splitting mixed costs into their variable and fixed components.
• Apply the learning curve in making estimates of future costs.
• Use regression analysis for splitting mixed costs into their variable and fixed components and evaluate the validity of the results.
• Provide relevant costs to assist management in decision making and pricing.
• Apply linear programming to assist management in the allocation of scarce resources.
• Allocate costs from service departments to production departments using the direct, step and reciprocal methods.
• Prepare income statements for segments of an organization using the contribution approach.
• Allocate joint costs to joint products using the physical measures, sales value at split-off, relative sales value and constant gross profit percentage methods.
• Provide information to assist management in deciding whether joint products should be processed beyond the split-off point.
• Account for by-product revenues and costs.
• Demonstrate the Weighted Average and FIFO methods of process costing.
• Show how standard costs can be used in process costing.
• Demonstrate how interdepartmental transfers affect Weighted Average and FIFO process costing.
• Account for spoilage in process costing using both the Weighted Average and FIFO methods.
• Demonstrate the use of JIT costing, Operation costing and Backflush costing.
• Develop methods for controlling the costs of major projects.
• Divide the Sales Volume Variance into Quantity and Mix or Market Size and Share Variances.
• Compute Mix and Yield variances for direct materials and labour.
• Evaluate various management control systems and the control of “Quality” and “Time”.
• Evaluate the benefits and costs of decentralization.
• Demonstrate three general methods for determining transfer prices.
• Evaluate alternative performance measurement and compensation systems.

Effective as of Winter 2004

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