|Course ID:||ACCT 6020. 2-3 hours. |
|Course Title:||Internal Uses of Accounting Information|
|Basic concepts and techniques applicable to the internal uses of accounting information. Emphasis is placed on planning and control applications, but some attention is given to product costing issues.|
|Oasis Title:||INTERNAL USES ACC|
|Duplicate Credit:||Not open to students with credit in ACCT 8140|
|Offered every year. |
|Grading System:||A-F (Traditional)|
This course is based on the presumption that you understand the material covered
in ACCT 6000. Specifically, you need a basic understanding of the financial
statements, debits and credits, business terms, and other fundamental financial
accounting concepts, such as revenue and expense recognition.
After completing this course, you should be able to:
1. prepare (relatively) simple analyses incorporating management
accounting information, and use this information to make
2. critically evaluate (more complex) analyses provided by
management accountants, and
3. recognize the likely effects of management accounting
information on incentives and behavior.
The major objective of the course is to help you develop the ability to analyze
financial data, especially (but not exclusively) information provided by a
firm's information system. Preparing relatively simple analyses should help
you master concepts that will in turn enable you to critically evaluate more
complex data presented by financial specialists. You should develop an under-
standing of what the numbers mean - and sometimes even more important - what
they do not mean.
Topic 1 - Estimating the costs of providing services, of producing products, and
of serving different customers. Analyzing these costs to determine
prices, to manage costs, and to decide which products/services/customers
to focus on developing.
Topic 2 - Integrating accounting information with other performance measures
to evaluate the unit's and manager's performance relative to core
business strategy. Identifying the type of financial information
that is most appropriate for evaluating different responsibility
centers and their managers. Anticipating dysfunctional incentives
common performance measures give managers, so as to avoid being
gamed by subordinates.
Topic 3 - Analyzing cost, price, and volume data, along with qualitative
considerations to make special decisions, including cost-volume-profit
analysis, relevant costs, cost-benefit analyses, and pricing.
Topic 4 - Developing budgets for different levels of service or production.