# 16.3: Learning Outcomes

- Page ID
- 45744

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The content, assignments, and assessments for Accounting for Managers are aligned to the following learning outcomes. A full list of course learning outcomes can be viewed here: Accounting For Managers

## Module 1: Manipulate numerical expressions involving fractions, decimals, and percents

### Make calculations with whole numbers of varying magnitude

- Make calculations with whole numbers of varying magnitude
- Round whole numbers to a determined place value

### Make calculations with proper fractions, improper fractions, and mixed numbers

- Identify different types of fractions and convert between them
- Use addition and subtraction when evaluating with fractions
- Use multiplication and division when evaluating expressions with fractions

### Make calculations with decimals of varying magnitude

- Use place value to define all digits of a decimal number
- Use addition and subtraction when evaluating expressions with decimals
- Use multiplication and division when evaluating expressions with decimals
- Convert decimals to fractions and fractions to decimals

### Make calculations using percents or finding percents

- Use ratios to solve simple word problems
- Use percent to represent a given fraction or decimal
- Evaluate expressions and word problems involving percents
- Solve problems involving percent increase and decrease

## Module 2: Apply math skills to solve problems with a variable of unknown value

### Solve single and multi-step equations for a given variable

- Define and identify variables
- Use the addition, subtraction, multiplication, and division properties to solve single-step equations
- Solving multi-step equations with variables on both sides

### Write and solve equations from word problems

- Translating simple word phases into math notation
- Use a problem solving strategy to set up and solve word problems

### Solve equations for word problems that contain fractions, decimals, and percents

- Use mathematical questions to solve mark-up problems
- Use mathematical questions to solve discount problems
- Calculate simple and compound interest
- Solve any given formula for a specific variable

### Use tables and graphs to visually represent numerical data

- Graph points on a coordinate plane
- Recognize the trend of a graph
- Calculate the rate of change using data points and graphical presentation
- Compare and contrast graphical data to decipher information and make decisions

## Module 3: Identify the Major Principles of Accounting

### Describe the place of finance and accounting within a business

- Discuss the roles of finance and accounting in a business
- Summarize the background and sources of financial accounting standards
- Demonstrate how ethics applies to the field of accounting

### Discuss the financial consequences of various organizational structures

- Outline the variety of accounting roles internal and external to a business
- Differentiate between functional and divisional organization
- Describe the legal implications of a business’ organization on its accounting
- Summarize the information provided in a corporation’s annual report

### Explore the fundamentals of accounting

- Define the accounting entity and discuss the going concern concept
- Identify the major underlying accounting principles of consistency, full disclosure, materiality, verifiability and conservatism
- Explain the accounting concept

## Module 4: Describe the different types of business organizations and the financial statements they rely on

### Examine the elements of common financial statements

- Define transactions
- Solving the accounting equation
- Identify general categories of accounts
- Describe the double entry bookkeeping system
- Explain how key financial statements are structured

### Discuss the bookkeeping process and the overall effects of transactions

- Illustrate the expanded accounting equation
- Define common bookkeeping terms and phrases
- Construct bookkeeping journal entries based on given parameters
- Analyze the relationships between key financial statements
- Identify important information found on key financial statements

### Analyze data from financial statements

- Describe how inventories are reported on balance sheets and income statements
- Demonstrate how current assets are reported on the balance sheet
- Show how noncurent assets are reported on the balance sheet
- Describe the presentation of stockholder’s equity on the balance sheet and statement of owners’ equity
- Discuss how expenses are reported on the income statement
- Explain how expenses are reported on the income statement

### Explore how other financial components are accounted for and presented

- Compute core financial ratios that communicate essential information
- Calculate return on investment
- Calculating return on equity
- Analyze other key ratios to interpret financial statement data
- Discuss the limitations of financial statements

## Module 5: Define managerial accounting, its key elements, and its role in a business

### Describe the difference between financial and managerial accounting

- Compare and contrast financial and managerial accounting
- Explain the key components of managerial accounting
- Analyze the relationship between financial and managerial accounting and how they are compartmentalized within modern businesses

### Examine the various managerial accounting perspectives throughout an organization

- Identify the roles/people in a business who take on managerial accounting decisions
- Explain how accounting affects strategy development
- Explain how accounting is tied to risk management planning
- Explain how accounting decisions are influenced by both employee and leadership beliefs and needs

## Module 6: Predict fixed, mixed, and variable cost behaviors

### Classify costs to better understand the business expenses

- Differentiate between product costs and period costs
- Classify a variety of manufacturing costs
- Define and give examples of fixed and variable costs
- Describe the relevant range and its use in managerial accouning

### Summarize the key elements of mixed cost analysis

- Define and outline examples of mixed costs in retail and manufacturing businesses
- Define dependent variable and independent variable
- Analyze mixed costs using the high-low method
- Use the least-squares regression method to create a regression line on a graph of cost data

## Module 7: Compare and contrast job costing, process costing, activity costing for tracking business costs

### Discuss the importance of cost management

- Describe the relationship between cost management and managerial accounting relating to the value chain
- Differentiate between direct and indirect costs

### Examine the job order cost accounting system

- Describe a situation in which job order costing is used
- Calculate an overhead rate, manufacturing overhead, and unit costs
- Explain the flow of costs in a job order costing system
- Prepare a sample journal entry that records job order costs

### Examine the process cost accounting system

- Compare and contrast job order and process costing
- Explain the flow of costs in a process costing system
- Calculate equivalent units of production and costs per equivalent unit using the weighted average and FIFO method
- Prepare sample cost reconciliation journals for both the weighted average and FIFO methods
- Discuss how to allocate service costs as operations costs using the direct and step-down methods

### Examine the benefits and limitations of both cost accounting methods

- Describe situations in which activity-based absorption costing is used
- Illustrate the difference between tradition costing and activity-based absorption costing

## Module 8: Use cost-volume-profit relationships to predict the effects of possible changes to those varriables

### Describe the key elements of cost-volume-profit analysis

- List the factors associated with cost-volume-profit analysis
- Outline the contribution margin model
- Calculate net operating income using the profit equation
- Compute the contribution margin ratio

### Illustrate the application of cost-volume-profit concepts

- Explain why changes to key cost-volume-profit factors can significantly affect planning and decision making
- Prepare a statement that shows a charge in fixed cost and sales volume
- Prepare a statement that shows a charge in variable costs and sales volume
- Prepare a statement that shows a change in fixed cost, selling price and sales volume
- Prepare a statement that shows change in variable cost, fixed cost and sales volume

### Examine various methods of break-even analysis

- Define the break-even point
- Determine the break-even point using the equation method, the formula method, and in dollar sales and sales units
- Define target profit analysis and use it to make sales volume calculations
- Compute margin of safety
- Analyze the break-even point data for a company that wants to adjust its sales mix

### Identify cost-volume-profit considerations for choosing a cost structure

- Compare and contrast sample cost structures for company strengths and weakness
- Describe operating leverage and use it to evaluate sample cost structures

## Module 9: Interpret all aspects of an operating budget

### Discuss the purpose of an master budget

- Describe the advantages of budgeting to a business
- Define responsibility accounting
- Differentiate between alternative budget periods
- Identify the benefits of self-imposed and participatory budgeting

### Illustrate the use of accounting data in a prepared master budget

- Summarize the impact of the sales forecast on the master budget
- Outline the sequence of components of the master budget
- Create a production budget
- Create a direct materials budget
- Create a direct labor budget
- Create a manufacturing overhead budget
- Create an ending inventory budget
- Create a selling and administrative budget
- Create a cash budget
- Create a budgeted income statement
- Create a budgeted balance sheet

### Outline the effects of flexible budgeting on budgetary control

- Describe the shortcomings of a statistic budget
- Create a flexible budget report that shows sales, activity, labor, or cost variances
- Create a flexible budget report that shows multiple cost drivers

## Module 10: Identify problems using cost variance analysis

### Discuss the basic principles of cost variance analysis

- Identify the four steps of simple cost variance analysis
- Differentiate between favorable and unfavorable variances
- Determine if a variance is significant

### Discuss different types of material variances

- Analyze the variance between expected material cost and actual material costs
- Analyze the variance between standard unit price and actual price of materials purchased
- Analyze the variance between expected amount of materials purchased and the actual amount of materials purchased
- Discuss strategies to limit and reduce material variances

### Discuss different types of labor variances

- Estimate expected labor costs
- Analyze the variance between expected labor cost and actual labor costs
- Discuss strategies to limit and reduce labor variances

### Discuss the variable manufacturing overhead variances

- Analyze the variance between expected variable manufacturing overhead cost and actual variable manufacturing overly costs
- Analyze the variance between expected variable manufacturing overhead efficiency and actual variable manufacturing overhead efficiency
- Discuss strategies to limit and reduce variable manufacturing overhead variances

## Module 11: Determine relevant revenues and costs for both short and long-term decision making

### Explore cost types that affect decision making

- Define differential cost
- Describe avoidable costs
- Recognize sunk costs
- Identify opportunity costs
- Summarize the concept of different costs analyzed for different purposes

### Recognize relevant costs for common business decisions

- Identify the data needed to support an add or drop decision
- Identify the data needed to support a make or buy decision
- Identify the data needed to support a special order decision

### Determine the profitability of making changes to a constrained resource

- Described a constrained resource in retail business

## Module 12: Present a variety of managerial decisions based on differential analysis

### Discuss the process of managerial decision-making and the factors involved

- Explain the process of differential analysis
- Analyze qualitative factors that can also affect managerial decisions

### Analyze data to create reports and make business decisions

- Create a report outlining the data to support a customer elimination decision
- Create a report outlining the data to support an add or drop decision
- Create a report outlining the data to support a make or buy decision
- Create a report outlining the data to support a sell or process further decision
- Create a report outlining the data to support a special order decision
- Create a report outlining the data to support a cost-plus pricing or target costing decision

## Module 13: Analyze a statement of cash flows

### Discuss key financial principles needed to produce and analyze a statement of cashflows

- Explain the nature of non-cash activities
- Identify cash flows that result from operating activities
- Identify cash flows that result from investing activites
- Identify cash flows that result from financing activities

### Distinguish between the Direct and Indirect methods of preparing a statement of cash flow

- Calculate cash flows from operating activities by the indirect method
- Calculate cash flows from operating activities by the direct method

### Prepare a statement of cash flow and describe how it can be used to evaluate a business

- Differentiate between net and gross cash flows
- Prepare a statement of cash flow using that indirect method
- Describe how cash flow factors can be used to improve or evaluate a business

## Module 14: Describe the financial and non-financial data that managers use to measure performance

### Identify common non-financial measures of performance and discuss their impact on an organization

- Discuss non-financial components of the balanced scorecard
- Describe what a performance report is

### Analyze an organization’s financial performance

- Perform a trend analysis on a financial statement
- Perform a common-size analysis on a financial statement
- Perform a ratio analysis on a financial statement

### Evaluate an organization’s performance using financial and non-financial data

- Evaluate a for-profit organization’s performance using financial and non-financial data
- Evaluate a non-profit organization’s performance using financial and non-financial data

## Module 15: Explain how capital budgeting is used in decision making

### Discuss capital budgeting

- Discuss the steps in the capital budgeting process
- Identify situations that require capital budgeting decision making
- Discuss the time value of money

### Differentiate between the different capital budget methods

- Describe the pay-back method
- Describe the internal rate of return method
- Describe the net present value method
- Describe the simple rate of return method

### Describe different ways to identify and measure potential risk of investments

- Evaluate a party’s risk aversion when proposing investment opportunities

### Discuss different influences on making capital budgeting decisions

- Analyze a possible replacement projects to determine if it should be implemented
- Conduct a postaudit on an example case to determine if the expected results were achieved

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