Course Name: ACC235 Management Accounting I
Credit Value: 5
Prerequisite Course: ACC140
Course Description
Students will be introduced to the basic
management accounting techniques used by
contemporary business to monitor operational
efficiency. Students will review several cost
behaviour analysis techniques used in setting
standards and other budgetary control
requirements. Students will also perform
cost/volume/profit analysis and will develop both
profit and cash flow projections and budget/actual
analysis of performance.
PLAR Information
Students will be introduced to the basic
management accounting techniques used by
contemporary business to monitor operational
efficiency. Students will review several cost
behaviour analysis techniques used in setting
standards and other budgetary control
requirements. Students will also perform
cost/volume/profit analysis and will develop both
profit and cash flow projections and budget/actual
analysis of performance.
Course Learning Outcomes
Upon completion of this course, the student will
have reliably demonstrated the ability to:
1. Define the role management accounting
plays within an organization and the
management accountant’s contribution
to operational efficiency.
1.1 Describe the difference between
managerial and financial accounting.
1.2 Develop an organizational chart for a
typical profit-oriented business and
describe the fundamental differences
between the objectives of line and staff
functions.
1.3 Describe the role of a management
accountant and his/her functional
relationship with other members of the
management team.
1.4 Define responsibility accounting and
describe its role in management of a
typical business.
ACC235-2008SEP-2013AUG
1.5 Define the fundamental functions of
management in terms of:
a. Planning.
b. Organizing.
c. Controlling.
1.6 Describe the advantages and
disadvantages of centralization and
decentralization.
1.7 Describe the role of professional
accountants in management and the
code of ethics guiding CMAs, CGAs and
CAs in industry.
2. Describe and compute cost behaviour
within a relevant range of activity.
2.1 Distinguish between cost and expense
from an accounting point of view.
2.2 Describe how costs behave in
relationship to a relevant range.
2.3 Distinguish between variable and fixed
costs, and committed and discretionary
fixed costs.
2.4 Distinguish between step-variable costs
and mixed (or semi-variable) costs.
2.5 Prepare and interpret a scatter chart
and best fit line.
2.6 Compute the fixed and variable
components of mixed costs by the use
of the high low method.
2.7 Compute least-squares regression using
Excel software and interpret the results
using: y=a+bx.
2.8 Describe the advantages and
disadvantages of the scatter chart
method, the high-low method, and the
least squares method.
3. Prepare financial statements for a
manufacturing company.
3.1 Define product costs and period costs.
3.2 Distinguish among direct materials,
direct labour, and factory overhead.
3.3 Prepare journal entries to demonstrate
the accounting cycle of a manufacturing
firm.
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ACC235 Management Accounting I Canadore College of Applied Arts and Technology

3.4 Prepare the following from an adjusted 6. Allocate revenue and expenses to
trial balance for a manufacturing responsibility centres for performance
company: measurement and evaluation.
a. Schedule of Cost of Goods 6.1 Define responsibility accounting and
Manufactured. describe the process.
b. Income Statement. 6.2 Distinguish among cost centres, profit
c. Balance Sheet. centres, and investment centres.
3.5 Account for under-and over-applied fixed 6.3 Distinguish between direct and indirect
and variable overhead. expenses.
6.4 List criteria for evaluation of
4. Describe the general process and purpose management performance.
of budgeting and prepare basic static and 6.5 Evaluate the return on investment for
flexible budgets. investment centres.
4.1 Define and describe the general purpose 6.6 Describe transfer prices under various
of budgeting. conditions.
4.2 Describe the components of the
budgeting process: 7. Prepare break-even charts and describe
a. Planning. the advantages and limitations of "cost
b. Communicating. volume profit (CVP) analysis."
c. Coordinating. 7.1 Describe the uses of CVP analysis in
d. Feedback. decision making.
4.3 Describe the concept of zero-based 7.2 Apply CVP analysis to single and multiple
budgeting and its advantages and products using equation and contribution
disadvantages. margin techniques.
4.4 Prepare the basic types of budgets: 7.3 Compute operating leverage.
a. Sales. 7.4 Prepare a break-even chart.
b. Production. 7.5 Apply CVP analysis to specific
c. Purchasing. management problems such as sales
d. Manufacturing. price or costs.
e. Selling and administrative expenses. 7.6 Describe the assumptions when using
f. Cash. CVP analysis.
g. Income Statement.
h. Balance Sheet. 8. Prepare the required accounting records
to maintain a Job Order and Process
5. Describe and show the advantages and Costing system.
disadvantages of actual and standard cost 8.1 List and describe the differences and
systems. similarities of Job-Order costing and
5.1 Describe the advantages of flexible Process Costing.
budgets over static budgets. 8.2 Describe the flow of materials, labour,
5.2 Prepare a flexible budget and and overhead costs in a Job-Order and
performance report. Process Costing system.
5.3 Illustrate the differences between actual 8.3 Prepare the necessary journal entries for
and standard cost systems. the operation of a Job-Order costing
5.4 Describe the major methods of setting system.
standard costs. 8.4 Describe the process and challenges of
5.5 Analyze variances for: allocating costs in a Process Costing
a. Direct material. environment.
b. Direct labour.
c. Variable and fixed overhead. 9. Describe Activity-Based Costing (ABC)
and determine the requirements for
designing such a system for a
manufacturing organization.
9.1 Demonstrate how plant-wide and
departmental overhead rates are set.
9.2 List and describe the benefits and
limitations of Activity-Based Costing.
9.3 Describe the hierarchical classification of
activities inherent with ABC systems.

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ACC235 Management Accounting I Canadore College of Applied Arts and Technology

Evaluation Strategy

Grading System

A+ Honours 90-100%
A+ 85-89% B+ 75-79% C+ 65-69% D+ 55-59% R Repeat U Unsatisfactory
A 80-84% B 70-74% C 60-64% D 50-54% S Successful I Incomplete

*For a complete detailed description please refer to the Academic Calendar.

Student Success
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Waiver of Responsibility
Every attempt is made to ensure the accuracy of this information as of the date of publication.
The college reserves the right to modify, change, add, or delete content.

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