I. General Information

1. Course Title:
Accounting Principles II (Managerial)

2. Course Prefix & Number:
ACCT 2012

3. Course Credits and Contact Hours:

Credits: 4

Lecture Hours: 4

Lab Hours: 0

4. Course Description:

A continuation of the study of accounting principles, including the topics of invested capital, financial statement analysis, cash flows, and accounting for debt. An additional major focus of the course is providing information to the firm to facilitate management decisions.

5. Placement Tests Required:

6. Prerequisite Courses:

8. Prerequisite (Entry) Skills:
Perform the accounting cycle and prepare financial statements in good form.

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

1. Course Equivalency - similar course from other regional institutions:

Name of Institution	Course Number and Title	Credits
State Cloud State University	ACCT 292 – Accounting II	3
Bemidji State University	ACCT 1102 – Principles of Accounting II	3
North Dakota State University	ACCT 201 – Elements of Accounting II	3
Century College	ACCT 2025 – Managerial Accounting	3
South Central College	ACCT 1811 – Managerial Accounting	3
St. Cloud Technical College	ACCT 1216 – Accounting Principles II	4
Itasca Community College	ACCT 1124 – Managerial Accounting	4

2. Transfer - regional institutions with which this course has a written articulation agreement:

Name of Institution	Date of Acceptance	Discipline/Area/Program of Transfer
St. Cloud State University	Fall 2005	Accounting
Bemidji State University	Fall 1998	Accounting
Minnesota State University – Moorhead	Fall 1998	Accounting
Southwest Minnesota State University	Fall 1998	Accounting
University of Minnesota – Crookston	Fall 1998	Accounting
University of Minnesota – Duluth	Fall 1998	Accounting
University of Minnesota – Morris	Fall 1998	Management
University of Minnesota – Twin Cities	Fall 1998	Accounting
Winona State University	Fall 1998	Accounting

III. Course Purpose

1. Program-Applicable Courses – This course is required for the following program(s):

Bookkeeping, Certificate
Accounting, Diploma
Accountan, AAS

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Demonstrate written communication skills	Understand and prepare a written report on a publicly traded corporation using basic analytical procedures including solvency and profitability analysis.
Apply abstract ideas to concrete situations	Use reasonable standards to make ethical judgments.

2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of the course:

• Summarize the types of cash flow activities reported in the statement of cash flows and prepare statement of cash flows.
• Understand and prepare a report on a publicly traded corporation in the areas of basic analytical procedures along with solvency and profitability analysis.
• Classify costs and prepare contribution margin income statements for business organizations.
• Prepare cost of goods manufactured statement.
• Define cost terminology.
• Record materials, labor and overhead to a job order costing system.
• Journalize cost flows in job order, process and activity-based costing methods comparing traditional and just-in-time production systems.
• Calculate unit cost and perform cost-volume-profit sensitivity analysis to determine break-even point to evaluate profit planning and decision making.
• Describe, identify and evaluate information relevant to business decisions.
• Describe the importance of capital investments and the capital budgeting process.
• Use the payback and the accounting rate of return methods to make capital investment decisions.
• Use the time value of money to compute the present and future value of single lump sums and annuities.
• Use discounted cash flow models to make capital investment decisions.
• Understand the components of the master budget and prepare income statement performance reports for responsibility centers.
• Journalize transactions at standard cost and prepare flexible budgets.
• Explain why companies use performance evaluation systems, describe the balanced scorecard and identify key performance indicators from each perspective.

V. Topical Outline

Listed below are major areas of content typically covered in this course.

1. Lecture Sessions

1. The Statement of Cash Flows
• Identify the purpose of the Statement of Cash Flows
• Distinguish among operating, investing and financing cash flows
• Prepare the Statement of Cash Flows by the indirect and direct method.
2. Financial Statement Analysis
• Perform a horizontal and vertical analysis of financial statements
• Prepare and use common-size financial statements.
• Compute and understand the standard financial ratios
3. Introduction to Management Accounting
• Distinguish management accounting from financial accounting.
• Identify trends in the business environment and the role of management accounting.
• Classify costs and prepare an income statement for a merchandising company.
• Classify costs and prepare an income statement and a statement of cost of goods manufactured for a manufacturing company.
• Use reasonable standards to make ethical judgments.
4. Job Order and Process Costing
• Distinguish between job order costing and process costing.
• Record materials and labor in a job order costing system.
• Record overhead in a job order costing system.
• Record completion of sales of finished goods and the adjustment for under- or over-allocated overhead.
• Calculate unit costs for a service company.
5. Activity-Based Costing and Other Cost Management Tools
• Develop activity-based costs (ABC).
• Use activity-based management (ABM) to achieve target costs.
• Describe a just-in-time (JIT) production system, and record its transactions.
• Use the four types of quality costs to make decisions.
6. Cost-Volume-Profit Analysis
• Identify how changes in volume affect costs.
• Use CVP analysis to compute breakeven points.
• Use CVP analysis for profit planning, and graph the CVP relations.
• Use CVP to perform sensitivity analyses.
• Calculate the breakeven point for multiple product lines or services.
7. Short-Term Business Decisions
• Describe and identify information relevant to business decisions.
• Make special order and pricing decisions.
• Make dropping a product and product-mix decisions.
• Make outsourcing and sell as is or process further decisions.
8. Capital Investment Decisions and the Time Value of Money
• Describe the importance of capital investments and the capital budgeting process.
• Use the payback and the accounting rate of return methods to make capital investment decisions.
• Use the time value of money to compute the present and future value of single lump sums and annuities.
• Use discounted cash flow models to make capital investment decisions.
9. The Master Budget and Responsibility Accounting
• Learn why managers use budgets and understand the components of the master budget.
• Prepare an operating and financial budget.
• Use sensitivity analysis in budgeting.
• Prepare performance reports for responsibility centers.
10. Flexible Budgets and Standard Costs
• Prepare a flexible budget for the income statement.
• Prepare an income statement performance report.
• Identify the benefits of standard costs and learn how to set standards.
• Compute standard cost variances for direct materials and direct labor.
• Analyze manufacturing overhead in a standard cost system.
• Record transactions at standard cost and prepare a standard cost income statement.
11. Performance Evaluation and the Balanced Scorecard
• a. Explain why and how companies decentralize.
• Explain why companies use performance evaluation systems.
• Describe the balanced scorecard and identify key performance indicators for each perspective.
• Use performance reports to evaluate cost, revenue and profit centers.
• Use return on investment (ROI), residual income (R), and economic valued added (EVA) to evaluate investments.
12. Characteristics of a Partnership (Optional)
• Identify the characteristics of a partnership.
• Account for partner investments.
• Allocate profits and losses to the partners.
• Account for the admission of a new partner.
• Account for the liquidation of a partnership.
• Prepare partnership financial statements.