MFIN.5600 Managerial Accounting
Managerial Accounting is a specialization within the field of accounting that is concerned with providing the information that is needed for effective planning, controlling, directing and decision-making by an organization. Managerial accounting can be used for several essential applications, such as determining optimal pricing policies, analyzing employee performance, controlling expenses and implementing cost/benefit analysis for potential expenditures. The course provides an overview of cost accounting fundamentals; such as direct and indirect costs, fixed and variable costs, etc. These concepts are used as the foundation for effective decision making, based on techniques such as cost-volume-profit (CVP) analysis, job costing, activity-based costing, etc. CVP is an essential tool for decision making and can be used to plan variable and fixed costs and implement cost-benefit analysis. Job costing and activity-based costing are used to allocate costs to different aspects of the production of goods and services. Capital budgeting, which enables a corporation to choose from among several competing investment projects as well as techniques for efficient planning, including the production of budgets, and proper planning of inventories and capacity utilization are also covered.