ACA150 - Intermediate Management Accounting

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Last revision date Jan 30, 2020 8:44:17 AM
Last review date Mar 16, 2020 12:15:03 AM

Subject Title
Intermediate Management Accounting

Subject Description
This course continues the study of cost classification and cost behavior and the use of standards for costing, managerial evaluation and financial planning. Final objectives are to provide management with relevant information for decision making. Its objectives are to analyze cost-volume-profit relationships, to determine income using segmented reporting and contribution margin, to prepare master budgets and evaluate divisional performance of various responsibility centres.

Credit Status

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Describe the usefulness and purpose for which Manager need accounting information.
  2. Prepare a master budget including all supporting schedules, comprising sales, production, material purchases, labour, and manufacturing overhead, budgeted income statement, cash flow and budgeted balance sheet.
  3. Demonstrate the use of standard cost and prepare standard cost variances analysis for materials, labour and manufacturing overheads. Understand the journalisation of all standard cost transactions.
  4. Prepare flexible overhead budgets and explain their use in controlling department performance.
  5. Allocate service department costs to segments of the organization, and compute the segment margin.
  6. Compute internal transfer prices under conditions of full and idle capacity.
  7. Prepare analyses of relevant costs of dropping of a product line, make or buy decisions, equipment replacements and the further processing of joint products.
  8. Determine target prices for products and services under various market conditions by the use of cost-plus pricing under either absorption or contribution approach.

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