16.3: Learning Outcomes

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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
Use addition, substraction, multiplication, and division when evaluation whole number expressions

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

Learning Outcomes. Provided by: Lumen Learning. License: CC BY: Attribution

Magnify. Authored by: Eucalyp. Provided by: Noun Project. Located at: https://thenounproject.com/term/magnify/1276779/. License: CC BY: Attribution