Lecture 32
An overview of Topics
Chapter 01
Businesses, Multinational Corporations
and Basics Concepts of Accounting
Lecture 01
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Course Outline
Types of Businesses
Types of Business Organizations
Formation of Corporations
What is MNC and Goals of MNC
Constraints interfering with the MNC’s Goal
Managing within the constraints
Lecture 02
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Theory of Comparative Advantage
International Business Methods
Business Strategies
Business Stakeholders
Organizational Goals
The Process of Providing Information
Purpose of Information
The Purpose of Accounting
Accounting System
Financial Statements
Managerial Accounting and Financial Accounting
End of Chapter
Chapter
2
The Changing Role of
Managerial Accounting in
Dynamic Business Environment
Lecture 03
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Managing Resources, Activities and People
How managerial Accounting Adds value
Balance Scorecard
Planning and Control Cycle
Line and Staff Positions
Location of Managerial Accountant
Organizational chart
Major Themes in Managerial Accounting
Evolution and Adaptation in Managerial Accounting
Value chain and Theory of Constraints
Strategic Cost Management and the Value Chain
Ethical Climate of Business
Managerial Accounting as a Career
Focus on Ethics
Lecture 04
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Service vs Merchandising Business
Accounts on the Income Statement
Terms used in merchandizing
Sample income statement
Computation of Costs
Balance Sheet Accounts
Closing Entries
Lecture 05
• Comparing Merchandising and Manufacturing
Activities
• Manufacturing Costs
• Classifications of Costs
• Nonmanufacturing Costs
• Product Costs Versus Period Costs
• Comparing Merchandising and Manufacturing
Activities Financial Statement
• Manufacturing Cost Flows
Lecture 06
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Inventory Flows
Product Costs
Cost Classifications for Predicting Cost Behavior
Variable Cost
Fixed Cost
Cost Classifications for Predicting Cost Behavior
Direct Costs and Indirect Costs
Cost Concepts
Lecture 07
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Cost, Product Cost, Period Cost
Components of Manufacturing Products
Cost of Good Manufactured
Cost of Goods Sold
Manufacturing Cost Flows
Income Statements
Lecture 08
• Practice Questions
– Cost of Goods Sold
– Income Statement
– Missing Data Cost of Goods Sold
– Missing Data Income Statement
Lecture 09
• Problem Questions
– Missing Data Cost of Goods Sold
– Missing Data Income Statement
• End of Chapter
Chapter
3
Systems Design:
Job-Order costing
Lecture 10
• Types of Costing Systems Used to Determine
Product Costs
– Job-Order Costing
– Process Costing
• Sequence of Events in a Job-Order Costing
System
• Practice Question
Lecture 11
• Application of Manufacturing Overhead
• The Need for a Predetermined Manufacturing
Overhead Rate
• Overhead Application Example
• MCQs Questions
Lecture 12
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Problem Question
Job-Order Costing Document Flow Summary
Job-Order System Cost Flows
Overhead Application Example
Over-applied and Under-applied
Manufacturing Overhead
• MCQs Test Questions
Lecture 13
• Journal Entries
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Cost Flows – Material Purchases
Cost Flows – Material Usage
Cost Flows – Labor
Cost Flows – Actual Overhead
Cost Flows – Overhead Applied
Cost Flows – Period Expenses
Cost Flows – Cost of Goods Manufactured
Cost Flows – Sales
• Exercise Question
• End of Chapter
Chapter
4
Systems Design:
Process Costing
Lecture 14
• Types of Costing Systems Used to Determine
Product Costs
• Differences Between Job-Order and Process
Costing
• Sequential Processing Departments
• Parallel Processing Departments
• Flow of Materials, Labor and Overhead Costs
• Materials, Labor, and Overhead Cost Entries
Lecture 15
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Equivalent Units of Production
MCQs Test
Weighted Average Method
Production Report
Production Report Example
Lecture 16
• Question with Complete Data
• Question with Missing Data
Lecture 17
• Operations Costing
• Compare and contrast operation costing
with job costing and process costing
• Practice Questions
• End of Chapter
Chapter
5
Systems Design:
Activity based Costing
Lecture 18
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Systems Design: Activity-Based Costing
Assigning Overhead Costs to Products
Plantwide Overhead Rate
Departmental Overhead Rates
Activity-Based Costing (ABC)
Designing an ABC System
Hierarchy of Activities
Activity-Based Costing at Classic Brass
Using Activity-Based Costing
Direct Labor-Hours as a Base
Computing Activity Rates
Lecture 19
• Targeting Process Improvements
• Evaluation of Activity-Based Costing-Pros and
Cons
• ABC and Service Industries
• Cost Flows in an ABC System
• Over/Under applied FOH
• Practice Questions
Lecture 20
• Problem Questions
– Simple Data Question
– Comprehensive Data Question
Lecture 21
• Problem Questions
– Simple Data Question
– Comprehensive Data Question
End of Chapter
Chapter
6
Cost-Volume-Profit-Analysis
Lecture 22
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Cost-Volume-Profit Relationships
The Basics of Cost-Volume-Profit (CVP) Analysis
The Contribution Approach
Contribution Margin Ratio
MCQs Test
Changes in Fixed Costs and Sales Volume
Break-Even Analysis
– Equation Method
Lecture 23
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Contribution Margin Method
MCQs Test
CVP Relationships in Graphic Form
CVP Graph
Target Profit Analysis
The CVP Equation
The Contribution Margin Approach
The Margin of Safety
Practice questions
Lecture 24
• The Concept of Sales Mix
• Multi-product break-even analysis
• Assumptions of CVP Analysis
Lecture 25
• Operating Leverage
– Verify increase in profit
• MCQs Question
• Practice Question
• End of Chapter
Chapter
7
Joint Product and By
Product Costing
Lecture 26
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Main Products and Byproducts
Joint Cost Terminology
By-Product Costs: Characteristics
By-products cost allocation
Joint Production Process
By-Products
Joint Cost Allocation Methods
Criteria to Guide Cost-Allocation Decisions
Criteria of cost allocation-issues
Joint-Cost Basics
Lecture 27
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Splitoff Point
Joint Products and By-products
Why Allocate Joint Products?
Approaches to Allocating Joint Costs
Sales Value at Splitoff Method
Lecture 28
• Practice Question
• Joint Cost Calculation at Splitoff Point
• Gross Margin Calculation
Lecture 29
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Estimated Net Realizable Value (NRV) Method
Separable Cost
Gross Margin Calculation
Practice Question
Lecture 30
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Physical Measures Method
Comparison of Methods
Irrelevance of Joint Costs for Decision Making
Average Unit Method
Weighted Average Unit Method
Practice Question
End of Chapter
Chapter
8
Budgetary Planning and Control
Lecture 31
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Budget Definition
Budgets – what they are
Reasons for preparing budgets
When are budgets prepared ?
The role of the finance department
Budgeting approaches
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Historic/incremental budgeting
Zero-based budgeting
Activity-based budgeting
Cash Budgeting
Research and Development Budgets
Capital Expenditure Budgets
• Budgetary control – what it is ?
• Variance Analysis
– Volume Variance
– Spending Variance
Lecture 32
• An Overview of all lectures
God Bless You
and
Good Luck