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EAC 2212 Principles of Accounting 2


Course Description

Principles of Accounting 2 emphasizes understanding the role of accounting in product costing, costing for quality, cost-justifying investment decisions, and performance evaluation and control of human behavior.

Course Objectives

At the completion of this course, students will be able to

  • Define and give examples of cost terms used in planning, control, and decision making
  • Distinguish between manufacturing and nonmanufacturing costs and between product costs and period costs
  • Discuss job order costing and describe how direct materials, direct labor, and manufacturing overhead are assigned to jobs
  • Discuss process costing and describe how products flow through departments and how costs flow through accounts
  • Perform cost-volume-profit analysis including the calculation of the break-even point
  • Explain the cost allocation process and the concept of activity-based costing
  • Explain the basic concepts involved in incremental analysis and correctly use these concepts in analyzing decisions
  • Evaluate investment opportunities using the following four approaches
    • Net present value
    • Internal rate of return
    • Payback period
    • Accounting rate of return
  • Identify and prepare the budget schedules that make up the master budget
  • Explain the key terms and basic concepts involved in flexible budgets and variance analyses
  • Use the aquired information and skill needed to prepare students for careers in business and upper-level accounting and management courses by focusing on crucial accounting background information, which incorporates the development of problem-solving abilities and oral, written, and computerized communication skills

Week 1


Lecture: Instructor Introduction
Lecture: Introduction to Managerial Accounting Accounting
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.
Lecture: Job-Order Costing
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes

After completing this lecture, students will be able to

  • Distinguish between financial and managerial accounting
  • State the primary goal of managerial accounting
  • Describe managerial cost concepts
  • Explain the difference between product and period costs
  • Describe manufacturing costs, direct labor, and direct materials
  • Describe how manufacturing costs are reflected in the income statement and balance sheet
  • Explain two key ideas in managerial accounting
  • Discuss decision making across the organization
  • Distinguish between manufacturing and nonmanufacturing costs
  • Discuss the types of product costing systems
    • Job order cost system
    • Process cost system
  • Describe the job order cost flow
    • Accumulate manufacturing costs
    • Assign manufacturing costs to work in process
    • Assign costs to finished goods
    • Assign costs to cost of goods sold
  • Describe how direct material, direct labor, and manufacturing overhead are assigned to jobs
  • Explain the role of a predetermined overhead rate in applying overhead to jobs
  • Discuss modern manufacturing practices and how they affect product costing

Week 2


Lecture: Cost-Volume-Profit
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.
Lecture: Internal Control, Fraud, and Cash
  • Portions of the content used in this lecture were taken from Accounting Principles (9th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E. 

Outcomes

After completing this lecture, students will be able to

  • Perform cost behavior analysis
    • Variable costs
    • Fixed costs
    • Relevant range
    • Mixed costs
    • Importance of identifying variable and fixed costs
  • Perform Cost-volume-profit analysis
  • Break-even analysis
  • Target net income
  • Explain the principles of internal control and elements of fraud
    • Fraud triangle
    • Sarbanes-Oxley Act
    • Benefits and purpose of internal controls
  • Prepare bank reconciliation
  • Describe the operation of a petty cash fund

Week 3


Lecture: Budgetary Planning
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes

After completing this lecture, students will be able to

  • Describe budgeting basics
    • The benefits and essentials of effective budgeting
    • The budgeting process and the length of the budget period
  • Prepare the operating budgets
    • Sales budget
    • Production budget
    • Direct materials and direct labor budgets
    • Prepare the financial budgets

Week 4


Lecture: Budget Control and Responsibility Accounting
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes

After completing this lecture, students will be able to

  • Explain the concept of budgetary control
  • Describe static budget reports
  • Prepare flexible budgets

Week 5


Lecture: Standard Costs and Variances
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes

After completing this lecture, students will be able to

  • Recognize the need for standards
  • Setting standard costs
  • Analyzing and reporting variances from standards
    • Direct materials variance
    • Direct labor variance
    • Manufacturing overhead variance

Week 6


Lecture: Incremental Analysis and Capital Budgeting
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes

After completing this lecture, students will be able to

  • Describe types of incremental analysis
    • Accept an order at a special price
    • Sell or process further
    • Retain or replace equipment
    • Eliminate an unprofitable segment
  • Describe the capital budgeting process
    • Annual rate of return
    • Cash payback
    • Net present value
    • Internal rate of return

Week 7


Lecture: Long-Term Liabilities
  • Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes

  • Describe bond basics
    • Bond types and procedures
  • Account for bond issues
  • Account for bond retirement
  • Account for debt investments
  • Account for stock investments

Week 8


Lecture: Statement of Cash Flows

Portions of the content used in this lecture were taken from Accounting Principles (11th Ed.), Weygandt, Jerry J., Kimmel, Paul D., and Kieso, Donald E.

Outcomes 

After completing this lecture, students will be able to

  • Explain the purpose of the statement of cash flows
  • Distinguish between operating, investing, and financing activities
  • Prepare a statement of cash flows using the indirect method
  • Analyze the statement of cash flows

The course description, objectives and learning outcomes are subject to change without notice based on enhancements made to the course. November 2013