Accounting Foundations: Managerial Accounting

Introduction

• Making business decisions through good accounting

• Introduction to managerial accounting
• The purpose of managerial accounting
• Recognizing problems and opportunities
• Controlling and evaluating data

• Understanding sunk costs
• Cost-volume-profit (CVP) analysis
• Controlling product cost flows
• Types of product costs
• Terms related to evaluation and decision-making

• Opening a Thai restaurant
• Contribution margin
• The CVP equation
• The break-even point
• Sensitivity analysis
• Sales mix

• Understanding production costs
• Overview of cost control
• Cost flows in manufacturing organizations
• Cost flows in merchandising organizations
• Cost flows in service firms

• Pricing a home remodel
• Responsibility accounting and the standard cost system
• Variances in materials price and quantity
• Labor rate and efficiency variances
• Controlling materials and labor variances

• The real cost of ice cream
• Introduction to activity-based costing
• The basics of activity-based costing
• Identifying overhead cost activities
• Analyzing overhead
• Identifying cost drivers
• Assigning production overhead
• Doing the math to influence your decisions

• Who needs a budget?
• The purpose of budgeting
• Budgeting for a manufacturing organization
• Budgeting for a merchandising organization
• Budgeting for a service organization
• Having a cash budget

• The billion-dollar machine
• Understanding capital budgeting
• Discounting cash flows
• The payback method
• The unadjusted rate of return method
• The net present value (NPV) method
• The internal rate of return method
• Considering qualitative factors

• Key takeaways