Exam Information: Refer to the cover page and D2L announcements for additional details.
Chapters Covered:
Pre-Midterm: 1 (Introduction to Management Accounting), 2 (Building Blocks of Managerial Accounting), 3 (Cost Behaviour), 4 (Cost-Volume-Profit Analysis), 5 (Job Costing), 7 (Activity-Based Costing and Lean Operations)
Post-Midterm: 8 (Short-Term Business Decisions), 9 (The Master Budget and Responsibility Accounting), 10 (Flexible Budget and Standard Costs), 3A (Absorption vs. Variable Costing), 12 (Capital Investment Decisions and Time Value of Money)
Chapter 1: Managerial vs. Financial Accounting
Chapter 2:
Direct Materials Used in Production
Cost of Goods Manufactured
Cost of Goods Sold
Chapter 3:
Types of Costs
Methods of Cost Behaviour Analysis
High-Low Method
Cost Formula
Total Variable Cost
Regression Analysis (interpretation of output and coefficients usage)
Chapter 4:
Contribution Margin
Operating Income
Contribution Margin Ratio
Break-even Point (in units and sales dollars for single/multiple products)
Target Profit (in units and sales dollars)
Margin of Safety (in units, dollars, and percent)
Degree of Operating Leverage
Percentage Change in Profits
New Operating Income
Chapter 5:
Predetermined Overhead Rate
Applied Overhead
Total and Unit Product Cost
Over or Under Applied Overhead
Journal Entries for Job Costing
Chapter 7:
Department Overhead Rates
Applied Overhead Total and Unit Cost using Department Overhead Rates
Cost Allocation Rate (Activity-Based Costing)
MOH Allocated to Job (Activity-Based Costing)
Cost Distortion (function-based vs. volume-based costing)
Chapter 8:
Target Pricing
Cost-Plus Pricing
Special Order Decisions
Dropping a Product/Department
Product Mix Decisions
Make or Buy Decisions
Sell or Process Further Decisions
Transfer Pricing Decisions
Chapter 9:
Define and prepare operating budgets and major components
Explain interrelationships of budget components
Define and prepare financial budgets and major components
Explain interrelationships of financial budgets' components
Chapter 10:
Variance Analysis concepts
Investigation criteria for variances
Compute and analyze static budget variances, sales volume variances, flexible budget variances
Appendix 3A and Posted Materials:
Prepare variable costing income statements (short and long versions)
Prepare absorption costing income statements (short and long versions)
Compare operating income under both costing methods
Reconcile variable and absorption costing incomes
Calculate inventories under variable and absorption costing
Chapter 12:
Importance of capital investments and budgeting process
Payback and accounting rate of return methods
Time value of money computations for lump sums and annuities
Discounted cash flow models (Net Present Value) for investment decisions
Compare capital budgeting methods
Internal Rate of Return (Chapter 12)
Chapter 6 (Process Costing)
Chapter 11 (Performance Evaluation and Balanced Scorecard)
Chapter 13 (Financial Statement Analysis)
Chapter 14 (Sustainability)