The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
Course Name:Managerial Accounting
Course Code:BADM 316
I. Basic Course Information
Program(s) on which the course is given: Business Administration
Major or minor element of program:Major.
Department offering the course:Business
Academic level:3rd.
Semester in which course is offered:Fall
Course pre-requisite(s): BADM 214
Credit Hours:3
Contact Hours Through:
Lecture
3.0
Tutorial*
2.0
Practical*
0.0
Total
5.0
Approval date of course specification:September 2013
II. Overall Aims of Course
This course provides a background for the main differences between financial and
managerial accounting and the type of information provided by both types of
accounting for decision making purposes. The course focuses on the components and
common behavior patterns of costs , it also develops an understanding of different
costing systems to accumulate and analyze costs, and apply some performance
evaluation tools.
III. Program ILOs covered by course
Program Intended Learning Outcomes (By Code)
Knowledge &
Intellectual Skills Professional Skills
Understanding
K2,
K3,K4,,K6,K8,K10,K13
I4,I6,I9
P1,P4 ,P7,P8,P19
General
Skills
G5,G9
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The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
IV. Intended Learning Outcomes of Course (ILOs)
a. Knowledge and Understanding
Upon completion of the course, students should be able to:
K.1Define managerial accounting its role in the management process.
K.2Explain four fundamental management processes that help organizations attain their goals.
K.3List five objectives of managerial accounting activity.
K.4Explain the major differences between managerial and financial
accounting.
K.5Identify the ethical responsibilities of a managerial accountant.
K.6Classify product costs, period costs, and expenses.
K.7Give examples of three types of manufacturing costs.
K.8Describe the behaviour of variable and fixed costs, in total and on a per-unit
basis.
K.9Classify direct, indirect, controllable, and uncontrollable costs.
K.10 Discuss the role of product and service costing in manufacturing and
nonmanufacturing firms.
K.11 Explain how an activity-based costing system operates, including the use of a
two-stage procedure for cost assignment, the identification of activity cost
pools, and the selection of cost drivers.
K.12 Discuss how activity-based costing is used in service-industry organizations.
K.13 Explain the role of cost structure and operating leverage in CVP
relationships.
K.14 Explain the accounting treatment of fixed manufacturing overhead
under absorption and variable costing.
K.15 Explain the implications of absorption and variable costing for costvolume-profit analysis.
K.16 List and explain five purposes of budgeting systems.
b. Intellectual/Cognitive Skills
Upon completion of the course, students should be able to:
I.1 Diagram and analyze the flow of costs through the manufacturing
accounts used in product costing..
I.2 Compute product costs under an activity-based costing system.
I.3 Evaluate absorption and variable costing.
c. Practical/Professional Skills
Upon completion of the course, students should be able to:
P.1 Prepare a schedule of cost of goods manufactured, a schedule of cost of goods
sold, and an income statement for a manufacturer.
P.2 Compute a predetermined overhead rate in job-order costing for jobshop and batch-production environments.
P.3 Prepare journal entries to record the costs of direct material, direct labor,
and manufacturing overhead in a job-order costing system.
P.4 Compute product costs under an activity-based costing system.
P.5 Compute a break-even point using the contribution-margin approach
and the equation approach.
P.6 Compute the contribution-margin ratio and use it to find the break-even
point in sales dollars.
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The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
P.7 Apply CVP ( cost volume profit )analysis to determine the effect on
profit of changes in fixed expenses, variable expenses, sales prices, and
sales volume
P.8 Prepare a contribution income statement.
P.9 Prepare an income statement under absorption costing.
P.10 Prepare an income statement for variable costs. Wrong wording
P.11 Reconcile reported income under absorption and variable costing.
P.12 Prepare each of the budget schedules that make up the master budget.
d. General and Transferable Skills
Upon completion of the course, students should be able to:
G.1 Use different terminologies used in manufacturing companies.
G.2 Apply different approaches for problem solving.
V. Course Matrix Contents
Main Topics /
Chapters
1-
2-
3-
456-
7-
Chapter one: The
Changing Role of
Managerial
Accounting in a
Dynamic Business
Environment
Chapter two: Basic
Cost Management
Concepts and
Accounting for Mass
Customization
Operations
Chapter three: Product
Costing and Cost
Accumulation in a
Batch Production
Environment
Chapter seven: CostVolume -Profit
relationship
Chapter eight: Variable
Costing
Chapter five: Activitybased costing
Chapter nine: Profit
Planning and
Activity-Based
Budgeting
Duration
(Weeks)
Course ILOs Covered by Topic
(By ILO Code)
K&U
I.S.
P.S.
1
K1,K2,K3,K4,K5
2
K6,K7,K8,K9
2
G.S.
G1,G2
I1
P1
G1
K10
P2,P3
G1
2
K13
P5,P6,P7,P8
G2
2
K14,K15
13
P9,P10,P11
G2
2
K11,K12
I2
P4
G1,G2
3
K16
P12
G2
3
The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
Net Teaching Weeks
14
VI. Course Weekly Detailed Topics / hours / ILOs
Week
No.
1
2
Sub-Topics
The Management Process in
Organizations
How Managerial Accounting Adds
Value to the Organization
Managerial Versus Financial
Accounting.
Role of the Managerial Accountant
Major Themes of Managerial
Accounting
Evolution and Adaptation in Managerial
Accounting.
Business, Ethics, and the Accountant.
What Is a Cost?
Product costs, period costs, and expenses
Costs on Financial Statements
A. Income statement: expenses
B.Balance sheet: inventories
1.
Raw-materials inventory
2.
Work-in-process inventory
3.
Finished-goods inventory
Manufacturing Costs
A. Direct material
B. Direct labor
C. Manufacturing overhead
1. Indirect material
2. Indirect labor
3. Other manufacturing costs
D. Conversion cost, prime cost
Total
Hours
Contact Hours
Theoretical
Practical
Hours
Hours*
5
3
2
5
3
2
5
3
2
5
3
2
Manufacturing Cost Flows
A. Cost of goods manufactured
3
4
Basic Cost Management Concepts
A. Cost drivers
B. Variable and fixed costs
C. Direct and indirect costs
Flow of Costs in Manufacturing
Firms
A. Work-in-process
4
The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
inventory
B. Finished-goods inventory
C. Cost of goods sold
Job-Order Cost Accumulation
A. Job-cost record
B. Direct materials
C. Direct labor
D. Manufacturing overhead
Overhead Application
A. Terminology and
application steps
B. Incurrence of actual
overhead
C. Adjusting the over- or
under applied Underutilized overhead at the
end of the accounting
period
Extended Illustration of Job-Order
Costing: Calculations and
Journal Entries
5
6
7
8
Financial Schedules
A. Schedule of cost of goods
manufactured
B. Schedule of cost of goods
sold
5
3
2
5
3
2
Midterm Exam
5
Adding target net profit to the break-
3
2
CVP Relationships and the Income
Statement
A. Traditional income
statements
B. Contribution income
statements
Cost-Volume-Profit (CVP) Analysis
A. Break-even point
B.
Contribution-margin
approach.
C.
Contribution-margin ratio
D.
Equation approach
5
The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
even point
Applying CVP Analysis
A. Safety margin
B. Changes in fixed
expenses, variable
expenses, selling prices,
and volume
Cost Structure and Operating
Leverage
CVP Analysis with Multiple Products
A. Sales mix
B. Weighted-average
contribution margin
9
10
11
Product Cost and Fixed
Manufacturing Overhead
A.
Absorption-costing
income statements
B.
Variable-costing income
statements
Reconciliation of Absorption- and
Variable-Costing Income
A.
No change in inventory levels
B.
Increase in inventory levels
C.
Decrease in inventory levels
Activity-Based Costing (ABC) Systems
A. Stage one: Identification of
cost pools
1.
Unit-level activities
2.
Batch-level activities
3.
Product-sustaining
activities
4.
Facility-level activities
B.
12
13
Stage two: Identification of
cost drivers for each cost
pool, calculation of pool
rates, and assignment of
costs to products and
services
Purposes of Budgeting Systems
Types of Budgets
A. Master budget
B. Pro-forma financial
5
3
2
5
3
2
5
3
2
5
3
2
5
3
2
6
The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
14
statements
Assembling the Master Budget
A. Sales revenue budget and
forecasting
B. Operational budgets
Master-budget construction
15
Total Teaching Hours
5
3
2
Final Exam
65
39
26
Teaching/Learning
Method
Lectures & Seminars
Tutorials
Computer lab Sessions
Practical lab Work
Reading Materials
Web-site Searches
Research & Reporting
Problem Solving /
Problem-based Learning
Projects
Independent Work
Group Work
Case Studies
Presentations
Simulation Analysis
Selected
Method
VII. Teaching and Learning Methods
√
√
Course ILOs Covered by Method (By ILO Code)
Intellectual
Skills
I1,I2,I3
K&U
K1 to K16
Professional
Skills
P1 to P12
P1 to P12
General
Skills
G1,G2
G1,G2
Others (Specify):
Assessment
Method
Midterm
Exam
Final Exam
Quizzes
Selected
Method
VIII. Assessment Methods, Schedule and Grade Distribution
Course ILOs Covered by Method
(By ILO Code)
K&U
K1,K2,K3,K4,K5,
K6,K7,K8,K9,K10
K1 TO K16
Assessment
Week
Weight /
No.
Percentage
I.S.
P.S.
G.S.
I1
P1,P2,P3,P5,P6
G1,G2
25%
7
I1,I2,I3
P1 TO P12
P1 TO P12
G1,G2
G1,G2
50%
5%
15
4,6,10
7
The Higher Canadian Institute for Business
and Engineering Technology
Quality Assurance Unit
Course Specification
Course
Work
Report
Writing
Case Study
Analysis
Oral
Presentations
Practical
Group
Project
Individual
Project
Others
(Specify):
P1 TO P12
G1,G2
20%
IX. List of References
Hilton, Ronald W. Managerial Accounting: Creating Value in a
Essential Required Text Dynamic Business Environment, ninth edition. USA: MC Graw Hill,
2011.
Books
Course notes
Recommended books

Lecturers notes
Managerial Accounting;11TH edition by Garrison, Noreen and
Brewer
Periodicals, Web sites, 
etc …
X. Facilities required for teaching and learning
List the facilities required
 White board
 computers (Personal & Notebook).
 data show.
Course coordinator: Dr. Engy El Hawary
Head of Department: Dr Dina Krema
Date: January 2013
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