Business Transfer Assurance Guide: Introductory Managerial

Business Transfer Assurance Guide: Introductory Managerial Accounting TAG Course-

Reaffirmed- February 22, 2023

OBU011 - INTRODUCTORY MANAGERIAL ACCOUNTING

3-4 Semester Hours

Related TAG: Business

General Course Description

This is a course of study that introduces managerial accounting for business entities.

Learning Outcomes and Academic Skills:

Any introductory course of study in managerial accounting that is included in the Business

Transfer Assurance Guide must use business-related materials to develop the following general

learning outcomes and academic skills:

1. Recognize the differing information needs of internal management and external

users of financial information*

2. Define and describe the basic terminology and concepts of managerial accounting*

3. Apply managerial accounting techniques to determine the cost of products and

services*

4. Explain and apply managerial accounting techniques for the purposes of planning,

controlling, decision making and performance evaluation*

Body of Knowledge Requirements:

Any introductory course of study in managerial accounting that is included in the Business

Transfer Assurance Guide must provide coverage of at least seventy percent of the

following topics:

I. Overview of Managerial Accounting

1.00 Managerial Accounting and Business Organizations

1.01 Distinction between financial accounting and managerial accounting*

1.02 Information needs of internal users

1.03 Cost benefit principle for information and reporting

1.04 Ethics and integrity in today’s organizations*

II. Cost Measurement and Decisions

2.00 Cost Concepts

2.01 Costs and cost drivers*

2.02 Variable, fixed and mixed costs*

2.03 Direct and Indirect costs*

2.04 Cost functions and cost behavior*

2.05 Categories of manufacturing cost*

2.06 Product and period costs*

2.07 Prime and conversion costs

3.00 Cost-Volume-Profit

3.01 Contribution margin and contribution margin ratio*

3.02 Use cost-volume–profit analysis to find break-even points and target profit

volumes*

3.03 Sales mix analysis

4.00 Cost Behavior

4.01 Methods of measuring cost functions (regression, high-low, etc.)

4.02 Use of cost equations to express and predict costs*

4.03 The value chain

Business Transfer Assurance Guide: Introductory Managerial Accounting TAG Course-

Reaffirmed- February 22, 2023

5.00 Cost Decisions

5.01 Relevant and irrelevant costs in decision contexts*

5.02 Special Order Decisions

5.03 Adding or dropping products

5.04 Using limited resources

5.05 Cost-plus pricing and target costing

5.06 Make or Buy decisions

5.07 Processing joint products

5.08 Influence of performance measures on production decisions

III. Product Costing

6.00 Cost Allocation

6.01 Cost accumulation, cost objects, and cost allocations*

6.02 Allocation of service department costs

6.03 Allocation of joint costs

6.04 Allocation of corporate support costs

6.05 Strengths and weaknesses of allocations in decision contexts

7.00 Accounting for Overhead Costs

7.01 Overhead rates*

7.02 Accounting for manufacturing overhead*

7.03 Variable and absorption costing

7.04 Overhead variance analysis

8.00 Costing Systems

8.01 Manufacturing inventories

8.02 Cost of Goods Manufactured*

8.03 Distinction between job-order and process systems*

8.04 Job costing and accounting for manufacturing costs*

8.05 Activity-Based Costing (ABC) systems

8.06 Process costing

IV. Planning and Control

9.00 Capital Investment Decisions

9.01 Discounted cash flow analysis*

9.02 Evaluation of individual projects - payback, return on investment, and net

present value*

9.03 Comparison of alternative projects*

9.04 Equipment replacement decisions

9.05 Income taxes and cash flow analysis

10.00 Budgeting

10.01 Preparation of the master/operational budget*

10.02 Budgets and organizational behavior

10.03 Financial planning models

11.00 Flexible Budgets and Variance Analysis

11.01 Static and flexible budgets*

11.02 Standard costs and prime cost variance analysis*

11.03 Standard costs and overhead variance analysis

11.04 Standard cost journal entries

12.00 Performance Evaluation

12.01 Centralized vs. decentralized organizations

12.02 Responsibility accounting—cost centers, profit centers, investment centers

12.03 Goal congruence, managerial effort and motivation

Business Transfer Assurance Guide: Introductory Managerial Accounting TAG Course-

Reaffirmed- February 22, 2023

12.04 Performance measurement—residual income and return on investment*

12.05 Non-financial measures of performance and the balanced scorecard

12.06 Transfer prices

Note: Body of knowledge and learning outcomes marked with an asterisk (*) are

considered fundamental and essential.

Business Transfer Assurance Guide: Introductory Managerial Accounting TAG Course-

Reaffirmed- February 22, 2023

BUSINESS TAG: INTRODUCTORY MANAGERIAL ACCOUNTING TAG COURSE

FACULTY PARTICIPANTS

February 22, 2023

Name

Institution

Donna Chadwick (Lead)

Sinclair Community College

Robert Adkins

Clark State Community College

Donna Von Deylen

Cincinnati State Technical and Community

College

Gayle Mackay

Southern State Community College

Martin Blaine

Columbus State Community College

Eric J. Marinich

Miami University

Marc Smith

The Ohio State University

David Stott

Ohio University

BUSINESS TAG: INTRODUCTORY MANAGERIAL ACCOUNTING TAG COURSE

FACULTY PARTICIPANTS

November 2014

Name

Institution

Linda Zucca (Co-Leads)

Kent State University

Raul Ramos (Co-Leads)

Lorain County Community College

Jim Zeigler

Bowling Green State University

Frank Klaus

Cleveland State University

Marilyn Tubaugh

Eastern Gateway Community College

Doug Holbrook

Marion Technical College

Tim Eaton

Miami University

Donna Chadwick

Sinclair Community College

Terry Holmes

Terra State Community College

Tzachi Zach

The Ohio State University

Tracey Hawkins

University of Cincinnati