Objectives: Chapter Seventeen
The following learning objectives for this chapter map to the curriculum design for our online university-level courses. These courses are offered through Utah State University, and result in the awarding of up to 6 hours of highly transferrable college credit. To learn more, check out the classroom link.
The distinguishing characteristics of managerial accounting.
Distinguish between financial and managerial accounting, and note the importance of specific rules to each.
Managerial accounting's role in planning, directing, and controlling.
Know how business value relates to management decision making.
Describe and differentiate between planning, control, and decision-making functions.
Be able to explain how strategy, positioning, and budgets are important parts of the planning process.
Understand the need for defining the core values of an organization.
Be familiar with the CMA and CFM designations issued by the Institute of Management Accountants.
Know the basic nature of operating, capital, and financing budgets.
Be able to briefly compare and contrast job order, processing, and activity-based costing methods.
Distinguish between absorption and direct costing techniques.
Be able to describe recent innovations in production management and information systems: ERP, B2B, RFID, M2M.
Be familiar with inventory management concepts like JIT and EOQ.
Know the basic job duties of a controller and a CFO.
What is the purpose of setting standards and monitoring deviations from those standards?
What is a balanced scorecard?
Discuss the concepts of total quality management and the theory of constraints.
Key production components: direct materials, direct labor, and factory overhead.
What three costs are incurred by a manufacturing concern?
Distinguish between direct and indirect materials.
Distinguish between direct and indirect labor.
Identify costs that are typically regarded as part of manufacturing overhead.
What comprises prime and conversion costs?
Product costs versus period costs.
What is the difference between a product (inventoriable) cost and a period cost, and why is this important to the accountant?
Categories of inventory for manufacturers and related financial statement implications.
Be able to prepare the financial statements of a manufacturer.
Note the special categories of inventory for a manufacturer.
Demonstrate the expanded nature of a manufacturer's income statement.
Be able to calculate cost of goods manufactured.
Be able to diagram the cost flows within a manufacturing company.