METROPOLITAN COMMUNITY COLLEGE COURSE OUTLINE FORM

COURSE TITLE

Accounting III ACCT 1120

LEC

COURSE PREFIX AND NO.

COURSE DESCRIPTION:

LAB

CREDIT HOURS

This is the final course of the three accounting principles series and offers an introduction to management accounting, manufacturing operations and cost accounting systems. Other topics covered include budgeting, cost-volume-profit analysis, performance evaluation, activity-based costing, just-intime environments, incremental analysis, decision-making and capital investment analysis. Applications are illustrated throughout the course. COURSE PREREQUISITES: ACCT 1110 with a grade of C or better RATIONALE: The study of accounting is essential in a business education. As the language of business, it is relevant for all business careers and critical in helping to make business decisions. Students are offered a clear, organized curriculum, which challenges and inspires them to develop core skills and competencies as they participate in the management of business. The basic procedures and principles covered in ACCT 1100 (Accounting I) and ACCT 1110 (Accounting II) are applied as related to management accounting. REQUIRED TEXTBOOKS and/or MATERIALS: Title: Accounting (Chapters 15 - 23) Edition: 8e, 2009 Author: Charles T. Horngren, Walter T. Harrison, Jr., and M. Suzanne Oliver Publisher: Pearson Prentice Hall Materials: Access to MyAccountingLab (MAL)

Attached course outline written by: Peg Johnson Reviewed/Revised by: All Full-Time Accounting Faculty Effective quarter of course outline: 11/WI Dean: ________________________________________

Date December 15, 2009 Date October, 2011 Date October, 2011 Date

Course Objectives, Topical Unit Outlines, and Unit Objectives must be attached to this page

TITLE: Accounting III

PREFIX/NO. ACCT 1120

Upon completion of this course, the student will demonstrate competencies in the areas of the following objectives: COURSE OBJECTIVES: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Distinguish management accounting from financial accounting. Describe the flow of costs through a manufacturers inventory accounts. Explain and distinguish between job order and process cost accounting systems. Apply job order accounting to a manufacturing business. Describe cost-volume-profit relationships and compute break-even points and plan profits using CVP. Define cost behavior and cost allocation, and explain cost classifications. Describe the budgeting process, and identify and prepare components of the master budget. Apply responsibility accounting in analyzing performance of responsibility centers. Prepare and use flexible budgets. Define and compare the activity-based management (ABM) and just-in-time (JIT) systems. Demonstrate the use of relevant information in decision-making. Use analytical concepts in evaluating capital budgeting decisions.

TOPICAL UNIT OUTLINE/UNIT OBJECTIVES: Upon completion of this course, the student will be able to: UNIT 1. 2. 3. 4. I. Introduction to Management Accounting Distinguish management accounting from financial accounting Identify trends in the business environment and the role of management accountability Classify costs: period vs. product; direct material, direct labor, and overhead Prepare an income statement for a service company, merchandising company, and manufacturing company 5. Identify the standards of ethical conduct for management accountants II. Job Order Costing Distinguish between job order costing and process costing Record materials, labor, and overhead in a job order costing system Record completion and sales of finished goods and the adjustment for over- or under-allocated overhead 4. Calculate unit costs for a service company III. Process Costing (Optional topic) Distinguish between process costing and job order costing Define and compute equivalent units of production Use process costing to assign costs to units completed and to units in ending work in process inventory

UNIT 1. 2. 3.

UNIT 1. 2. 3.

TITLE: Accounting III

PREFIX/NO. ACCT 1120

UNIT 1. 2. 3. 4.

IV. Activity-Based Costing and Other Cost Management Tools Distinguish between activity-based costing and a traditional costing methodology Apply activity-based costing (ABC) Use activity-based management (ABM) to achieve target costs Define the just-in-time (JIT) operating philosophy and identify the elements of a JIT operating environment 5. Define and apply JIT (backflush) costing (optional) 6. Identify the four types of quality costs used in decision-making (optional)

Unit V. Cost-Volume-Profit Analysis 1. Define cost behavior and identify variable costs vs. fixed costs 2. Separate mixed costs into their variable and fixed components using the high-low method 3. Identify how changes in volume affect costs 4. Define relevant range and indicate how it applies to CVP analysis 5. Use CVP analysis to compute breakeven points, for profit planning, and for sensitivity analyses 6. Calculate breakeven point for multiple product lines or services Unit VI. Short-Term Business Decisions 1. Identify relevant vs. irrelevant information to be used in decision-making 2. Apply the use of relevant information and incremental analysis to short-term decision-making Unit VII. Capital Investment Decisions 1. Identify the types of projected costs and revenues used to evaluate alternatives for capital investment 2. Demonstrate the use of payback, accounting rate of return, and discounted cash-flow models to make long-term capital budgeting decisions UNIT 1. 2. 3. 4. UNIT 1. 2. 3. 4. 5. VIII: The Master Budget and Responsibility Accounting Define budgeting and explain its role in the management cycle Prepare an operating budget and a financial budget Define a responsibility center and distinguish between cost, profit and investment centers Prepare performance reports for responsibility centers IX: Flexible Budgets and Standard Cost Prepare a flexible budget income statement Prepare an income statement performance report Identify the benefits of standard costs and determine how to set standards (optional) Compute standard cost variances for direct materials and direct labor (optional) Analyze manufacturing overhead in a standard cost system (optional)

UNIT X: Performance Evaluation and the Balanced Scorecard 1. Use ROI, RI, and EVA to evaluate investment centers 2. Describe the balanced scorecard and identify key performance indicators (optional) 3. Use performance reports to evaluate cost, revenue, and profit centers (optional)

TITLE: Accounting III

PREFIX/NO. ACCT 1120

COURSE REQUIREMENTS/EVALUATION:
Upon completion of this course, the student will have acquired a more advance knowledge of accounting procedures and topics. The competence of the student will be evaluated by the satisfactory completion of exams, assignments and/or projects based on the performance objectives.

Instructional Standards for Accounting Principles Classes

In keeping with Metropolitan Community Colleges mission to serve a diverse community of life-long learners by providing quality educational opportunities, the full-time accounting faculty emphasizes the following standards for accounting principles (ACCT 1100, 1110, and 1120) classes taught at the College: ASSESSMENT: Assessment methods requiring each individual student to demonstrate his or her personal abilities are consistent with program goals. Although group work may be an important part of the course, each accounting student must be able to demonstrate individual competence and his/her ability to understand concepts independently. Appropriate learning assessment methods include closed-book and in-class individual assessment, e.g., examinations, case studies, projects. The combination of selected assessments used to evaluate student progress and final grading practices should reflect a ratio of at least 2/3 in-class individual closed-book procedures (permitting a possibility of 1/3 out-of-class assessment and/or team-oriented assessment techniques if the instructor desires). Although offering out-of-class and/or team assessment methods is discretionary, such approaches are appropriately used to augment (not replace) in-class individual approaches consistent with the departments emphasis on individual assessment. Examinations/tests that are at least 60% problem-oriented and utilization of MyAccountingLab Online Homework and Assessment Manager are consistent with course objectives. LAB TIME: Holding class for the entire allotted class time is considered to be a basic requirement according to College policy and it is the instructors responsibility to do so. Although the accounting principles classes allow for lab time, lab time should not be considered any differently than regular class time meeting all lab time with the entire class is expected! The instructor may decide the best use of lab time reviewing homework, doing practice problems, presenting new concepts, etc. RETURNING / REVIEWING HOMEWORK AND COURSE ASSIGNMENTS: It is a fundamental principle of learning theory that feedback is an important element in the learning process, and the timeliness of appropriate feedback makes it more meaningful and beneficial to the student. This is especially true in a discipline such as accounting where the course material builds on previous assignments and learning topics. With this in mind, it is important to review and return homework and other class assignments on a timely basis in order to allow the students to make use of feedback in their preparation for examinations and future class assignments. The full-time and adjunct accounting faculty of Metropolitan Community College is committed to offering our students the best accounting education available. To achieve this goal, it is imperative that we maintain both high academic standards and appropriate academic rigor, and that we encourage our students to be responsible for their own individual development, advancement, and learning.

TITLE: Accounting III

PREFIX/NO. ACCT 1120

COURSE OBJECTIVES/ASSESSMENT MEASURES

COURSE OBJECTIVES

ASSESSMENT MEASURES

1. Distinguish management accounting from financial accounting. 1. Problem-centered examination with at least 60% problems. Use of MyAccountingLab Online Homework and Assessment Manager. 2. Describe the flow of costs through a manufacturers 2. Problem-centered examination with at least 60% inventory accounts problems. Use of MyAccountingLab Online Homework and Assessment Manager. 3. Explain and distinguish between job order and process 3. Problem-centered examination with at least cost accounting systems 60% problems. Use of MyAccountingLab Online Homework and Assessment Manager. 4. Apply job order accounting to a manufacturing 4. Problem-centered examination with at business least 60% problems. Use of MyAccountingLab Online Homework and Assessment Manager. 5. Describe cost-volume-profit relationships and 5. Problem-centered examination with at least 60% compute break-even points and plan profits using CVP problems. Use of MyAccountingLab Online Homework and Assessment Manager. 6. Define cost behavior and cost allocation, and explain 6. Problem-centered examination with at least 60% cost classifications problems. Use of MyAccountingLab Online Homework and Assessment Manager. 7. Describe the budgeting process, and identify and 7. Problem-centered examination with at least 60% prepare components of the master budget problems. Use of MyAccountingLab Online Homework and Assessment Manager. 8. Apply responsibility accounting in analyzing 8. Problem-centered examination with at least 60% performance of responsibility centers problems. Use of MyAccountingLab Online Homework and Assessment Manager. 9. Prepare and use flexible budgets 9. Problem-centered examination with at least 60% problems. Use of MyAccountingLab Online Homework and Assessment Manager. 10. Define and compare the activity-based management 10. Problem-centered examination with at least 60% (ABM) and just-in-time (JIT) systems problems. Use of MyAccountingLab Online Homework and Assessment Manager. 11. Demonstrate the use of relevant information in 11. Problem-centered examination with at least 60% decision-making problems. Use of MyAccountingLab Online Homework and Assessment Manager. 12. Use analytical concepts in evaluating capital 12. Problem-centered examination with at least 60% budgeting decisions problems. Use of MyAccountingLab Online Homework and Assessment Manager.