Accounting 2: Strategic Cost Analysis for Enterprise Management

My EMBA class is about to undertake our second accounting class.  The official name is Strategic Cost Analysis for Enterprise Management, but we call it managerial accounting.  We spend the first class learning the basics of accounting.  Now the fun starts.  We get to apply that knowledge to "make intelligent, informed business decisions, resulting in a more efficiently run organization, higher income statement profit, and a stronger financial position on the balance sheet."  If you'd told me at the beginning of the program that I'd feel confident heading into the second accounting class, I probably would not have believed you.  Yet here I am ready to tackle the subject.  Here's what we're expected to learn by the end of the class:
  1. Identify basic terms, concepts & goals of Managerial Accounting
  2. Classify and assign costs in Job Order Costing
  3. Process Costing: calculate equivalent units & prepare a Production Cost Report
  4. Analyze variable vs. fixed vs. mixed costs, graphs, & cost-volume-profit concepts
  5. Use variable costing (for decisions) vs. absorption costing (for external reporting)
  6. Allocate indirect costs; use activity-based costing vs. activity-based management
  7. Apply incremental analysis to make the correct, logical managerial decision
  8. Determine sales price for: profit maximizing, special orders, cost-plus pricing vs. target costing, customer profitability analysis & activity-based pricing
  9. Make capital budgeting, long-term decisions with after-tax consideration using net present value & internal rate of return methods
  10. Prepare an operating (annual) Master Budget (10 Excel Schedules) using standard & flexible budget concepts for variance analysis
  11. Use manufacturing standards to calculate 6 variances, comparing actual to budgeted costs, to control operations
  12. Discuss decentralization & calculate performance evaluations: return on investment, residual income, economic value added, and balanced scorecard.
  13. Review the 3 accrual accounting based financial statements from a manager’s perspective, applying horizontal vs. vertical vs. ratio analysis
  14. Study the Statement of Cash Flows: Its need, uses, & format of 3 Activity Sections (Operating-Direct vs. Indirect, Investing, Financing)

Piece of cake, right?

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