PowerPoint – Lesson 1
Exercises – Lesson 1
Origin of Managerial Accounting
Introduction to Managerial Accounting
Financial vs. Managerial Accounting
PowerPoint – Lesson 2
Exercises – Lesson 2
Cost Objects
Direct vs. Indirect Costs
Product Costs
Period Costs
Product vs. Period Cost
3 Types of Manufacturing Costs
Direct Materials
Direct Labor
Manufacturing Overhead
Prime & Conversion Costs
3 Types of Inventory
Raw Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Flow of Costs for a Manufacturer
Nonmanufacturing Costs (SG&A)
Cost of Goods Manufactured
Opportunity Cost
Cost of Goods Sold
Journal Entry for Cost of Goods Sold
Cost of Revenue
Sunk Costs
Variable Costs
Fixed Costs
Relevant Range
Cost Drivers
PowerPoint – Lesson 3
Exercises – Lesson 3
Job-Order Costing Overview
Job-Order Costing
Job-Order Costing Example
Predetermined Overhead Rate
Applying Manufacturing Overhead
Actual vs. Applied Overhead
Underapplied or Overapplied MOH
Fixed vs Variable Overhead Costs
Prorate Over/Underapplied Overhead
Closing Over/Underapplied Overhead
Effects of Over/Underapplied Overhead
Adjusted Allocation-Rate Approach
Job-Order Costing Journal Entries
Underapplied MOH Journal Entries
Job-Order Costing for Services
Departmental Overhead Rates
PowerPoint – Lesson 4
Exercises – Lesson 4
3 Ways to Allocate Support Costs
Direct Method
Step-down Method
Reciprocal Method
Reciprocal Method, using Linear Equations
Single-rate Method
Dual-rate Method
Allocating Support Costs using Practical Capacity
PowerPoint – Lesson 5
Exercises – Lesson 5
Joint Product Costs & Splitoff Point
Relative Sales Value Method
Physical Measure Method
NRV Method
Constant Gross Margin NRV Method
Accounting for Byproducts
Byproduct JE’s: Production Method
Byproduct JE’s: Sales Method
Sales Method vs. Production Method
PowerPoint – Lesson 6
Exercises – Lesson 6
Process Costing
Job-Order vs Process Costing
Cost Per Equivalent Unit (Weighted Average Method)
Cost Per Equivalent Unit Example (Weighted Average Method)
Process Costing Example (Weighted Average Method)
Cost Per Equivalent Unit (FIFO Method, Part 1)
Cost Per Equivalent Unit (FIFO Method, Part 2)
Weighted Average vs. FIFO Method
Process Costing with Sequential Production
Process Costing Journal Entries
PowerPoint – Lesson 7
Exercises – Lesson 7
Basics of Operation Costing
PowerPoint – Lesson 8
Exercises – Lesson 8
ABC vs. Traditional Costing
Activity Measures for ABC
ABC Part 1: Cost Pools and 1st Stage Allocation
ABC Part 2: 2nd Stage Allocation
ABC Full Length Example
Customer Profitability Analysis using ABC
Disadvantages of ABC
PowerPoint – Lesson 9
Exercises – Lesson 9
Mixed Costs
Step Variable Costs
Discretionary vs Committed Fixed Costs
The High Low Method
High-low Method Example
Least Squares Regression Method
Learning Curve Analysis
Cumulative Average-time Learning Model
Incremental Unit-time Learning Model
PowerPoint – Lesson 10
Exercises – Lesson 10
Contribution Margin Income Statement vs Traditional Format
Contribution Format Income Statement
Contribution Margin
Gross Margin vs Contribution Margin Formula
Contribution Margin Ratio
Calculating Break Even Point
Break-even Point (in units)
Break-even Point (in sales dollars)
Target Profit
Target After Tax Profit
Margin of Safety
Margin of Safety Percentage Example
Degree of Operating Leverage
Degree of Operating Leverage Example
Multiproduct Break-even Point
PowerPoint – Lesson 11
Exercises – Lesson 11
Absorption Costing
Variable Costing
Absorption vs. Variable Costing
Absorption Costing Example
Variable Costing Example
Absorption Costing Profit vs. Variable Costing Profit
Advantages of Variable Costing
Disadvantages of Variable Costing
PowerPoint – Lesson 12
Exercises – Lesson 12
Introduction to Budgeting
Participative vs. Traditional Budgets
Rolling Budget
Zero-based Budgeting
Master Budget
Sales Budget
Schedule of Expected Cash Collections
Production Budget
Direct Materials Budget
Direct Labor Budget
Manufacturing Overhead Budget
Ending Inventory Budget
SG&A Budget
Cash Budget
Merchandise Purchases Budget
Advantages of Budgeting
Disadvantages of Budgeting
PowerPoint – Lesson 13
Exercises – Lesson 13
Flexible Budgeting
Revenue and Spending Variance Analysis
Calculating a Revenue Variance
Calculating a Spending Variance
Advantages of Flexible Budgeting
Disadvantages of Flexible Budgeting
PowerPoint – Lesson 14
Exercises – Lesson 14
Management by Exception
Standard Costs and Variance Analysis
Materials Price Variance
Materials Quantity Variance
Materials Quantity Variance (purchases ≠amount used)
Direct Materials Variance Analysis
Labor Rate Variance
Labor Efficiency Variance
Direct Labor Variance Analysis
Variable Overhead Spending Variance
Variable Overhead Efficiency Variance
Fixed Overhead Spending Variance
Fixed Overhead Production Volume Variance
Advantages of Standard Costing
Disadvantages of Standard Costing
PowerPoint – Lesson 15
Exercises – Lesson 15
Time Value of Money
Present Value of a Single Amount
Present Value of an Ordinary Annuity
Present Value of a Perpetuity
Present Value of a Growing Annuity
Present Value of an Annuity Due
Ordinary Annuity vs. Annuity Due
Net Present Value (NPV)
NPV Example
Internal Rate of Return
IRR of a Single Cash Flow
Calculating IRR (using trial and error)
Payback Period Method Example
Discounted Payback Period Method
NPV vs. IRR
PowerPoint – Lesson 16
Exercises – Lesson 16
Return on Investment (ROI)
Residual Income
ROI vs. Residual Income
Economic Value Added (EVA)
EVA Example
Weighted Average Cost of Capital (WACC)
Cost to Acquire a Customer
Churn Rate
Lifetime Value of a Customer
Lifetime Value of a Customer vs. Customer Acquisition Cost
Sales Per Square Foot
Same-store Sales
Daily Active Users
PowerPoint – Lesson 17
Exercises – Lesson 17
Balanced Scorecard
Learning and Growth Perspective
Internal Process Perspective
Customer Perspective
Financial Perspective
Strategy Maps
PowerPoint – Lesson 18
Exercises – Lesson 18
Decentralization
Advantages of Decentralization
Disadvantages of Decentralization
Responsibility Accounting
Responsibility Centers
Cost Center
Revenue Center
Profit Center
Investment Center
3 Ways to Allocate Common Costs
Stand-alone Cost Allocation
Incremental Cost Allocation
Shapley Value Cost Allocation
PowerPoint – Lesson 19
Exercises – Lesson 19
Make or Buy Decision
Make or Buy Decision (with opportunity cost)
Sell or Process Further Decision
Deciding to Drop a Product Line
Deciding to Drop a Product Line (shortcut)
Accept or Reject Special Order
PowerPoint – Lesson 20
Exercises – Lesson 20
Transfer Pricing
Market-based Transfer Price
Cost-based Transfer Price
Negotiated Transfer Price
Full Cost Transfer Pricing
Transfer Pricing (with Excess Capacity)
Transfer Pricing (No Excess Capacity)
Dual Rate Transfer Pricing
Transfer Pricing and Tax Avoidance
Target Costing
The 4 Costs of Quality
PowerPoint – Lesson 21
Exercises – Lesson 21
PowerPoint – Lesson 22
Exercises – Lesson 22
Ordering Costs
Carrying Costs
Economic Order Quantity Example
Reorder Point
Material Requirements Planning
Just In Time (JIT) Inventory System
Enterprise Resource Planning (ERP) System
