ACCT 2302: LEARNING OBJECTIVES: REVISED PER TASK FORCE MEETING JUNE 2013
After completing chapter 1, you should be able to:
LO1 Describe the key differences between financial accounting and managerial accounting.
Describe how managerial accounting is used in different types of organizations to support
LO2
the key functions of management.
Explain the role of ethics in managerial decision making and the effects of the SarbanesLO3
Oxley Act.
LO4 Define and give examples of different types of cost:
Out-of-pocket or opportunity costs
Direct or indirect costs
Variable or fixed costs
Relevant or irrelevant costs
Manufacturing or nonmanufacturing costs
Product or period costs
After completing chapter 2, you should be able to:
LO1 Describe the key differences between job order costing and process costing.
Describe the source documents used to track direct materials and direct labor costs to the
LO2
job cost sheet.
Calculate a predetermined overhead rate and use it to apply manufacturing overhead cost to
LO3
jobs.
LO4 Describe how costs flow through the accounting system in job order costing.
LO5 Calculate and dispose of overapplied or underapplied manufacturing overhead.
LO6 Calculate the cost of goods manufactured and cost of goods sold.
After completing chapter 3, you should be able to:
LO1 Describe the key features of a process costing system.
LO2 Reconcile the number of physical units using the weighted average method.
LO3 Calculate the number of equivalent units using the weighted average method.
LO4 Prepare a process costing production report using the weighted average method
After completing chapter 4, you should be able to:
Assign indirect cost to products or services using a single volume-based allocation
LO1
measure.
LO2 Classify activities as unit, batch, product, customer, or facility level activities.
LO3 Assign indirect costs to activity cost pools (Stage 1) and select a driver for each pool.
LO4 Assign activity costs to products or services (Stage 2) using activity rates.
LO5 Assign activity cost to products or services (Stage 2) using activity proportions.
LO6 Compare the results of a volume-based cost system to activity based costing.
LO7 Deleted
ACCT 2302: LEARNING OBJECTIVES: REVISED PER TASK FORCE MEETING JUNE 2013
After completing chapter 5, you should be able to:
LO1 Identify costs as either variable, fixed, step, or mixed.
LO2 Prepare a scattergraph to illustrate the relationship between total cost and activity.
LO3 Use the high-low method to analyze mixed costs.
LO4 Use least-squares regression to analyze mixed costs.
Prepare and interpret a contribution margin income statement.
LO5
LO5-S1 Compare variable costing to full absorption costing.
After completing chapter 6, you should be able to:
L01 Use cost-volume-profit analysis to find the break-even point.
L02 Use cost-volume-profit analysis to determine the sales needed to achieve a target profit.
L03 Compute the margin of safety.
Analyze how changes in prices and cost structure affect the cost-volume-profit
L04
relationships.
Calculate the degree of operating leverage and use it to predict the effect a change in sales
L05
has on profit.
Perform multiproduct cost-volume-profit analysis and explain how the product mix affects
L06
the analysis.
After completing chapter 7, you should be able to:
LO1 Describe the five steps in the decision-making process.
LO2 Define and identify relevant costs and benefits.
LO3 Analyze a special-order decision.
LO4 Analyze a make-or-buy decision.
LO5 Analyze a decision to eliminate an unprofitable business segment.
LO6 Analyze a sell-or-process further decision.
LO7 Prioritize products to maximize short-term profit with constrained resources.
After completing chapter 8, you should be able to:
Describe (a) how and why organizations use budgets and planning and control and (b)
LO1
potential behavioral issues to consider when implementing a budget.
LO2 Describe the major components of the master budget and their interrelationships.
LO3 Prepare the following components of the operating budget:
a. Sales budget.
b. Production budget.
c. Raw materials purchases budget.
d. Direct labor budget.
e. Manufacturing overhead budget.
f. Cost of goods sold budget
ACCT 2302: LEARNING OBJECTIVES: REVISED PER TASK FORCE MEETING JUNE 2013
g. Selling and administrative expense budget.
h. Budgeted income statement
LO4
Prepare the cash budget and describe the other financial budgets required to prepare a
budgeted balance sheet.
LO5 Prepare a merchandise purchases budget for a merchandising firm.
After completing chapter 9, you should be able to:
Describe the standard-setting process and explain how standard costs relate to budgets and
LO1
variances.
LO2 Prepare a flexible budget and show how total costs change with sales volume.
LO3 Calculate and interpret the direct materials price and quantity variances.
Calculate and interpret the direct labor rate and efficiency variances.
LO4
LO5 Calculate and interpret the variable overhead rate and efficiency variances.
After completing chapter 10, you should be able to:
LO1 List and explain the advantages and disadvantages of decentralization.
LO2
Describe the different types of responsibility centers and explain how managers in each type are
evaluated.
LO3 Delete
LO4 Compute and interpret residual income.
LO5
Describe the four dimensions of the balanced scorecard and how they are used to evaluate
managerial performance.
LO6 Explain how transfer prices are set in decentralized organizations.
After completing chapter 11, you should be able to:
LO1 Calculate the accounting rate of return and describe its major weaknesses.
LO2 Calculate the payback period and describe its major weaknesses.
LO3
Calculate net present value and describe why it is superior to the other capital budgeting
techniques.
LO4 Predict the internal rate of return and describe its relationship to net present value.
LO5 Use the net present value method to analyze mutually exclusive capital investments.