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Work towards your CPA designation!

ACC 929 - Intermediate Management Accounting C02

Academic Credit Value:
3 units
Course Delivery Mode:
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 928 Introductory Management Accounting and ACC 925 Introductory Financial Accounting or equivalents. Be advised: Students who do not meet the pre-requisites will be required to withdraw. In such cases, CCE’s withdrawal/refund policies will apply.
Course Anti-requisite(s):
Instructor Name:
Jeff O'Leary
Course Dates:
01/19/2019 - 04/27/2019

Required Course Materials:
Horngren, Datar, Rajan, Beaubien, Graham: Cost Accounting A Managerial Emphasis, Seventh Canadian Edition, Pearson Canada Inc., Toronto, Ontario
Optional Course Materials:
Course Description:
This course focuses on the management tools, systems and application of best practices in Management Accounting towards strategic planning & controls in organizations. It is an extension of the concepts already learned in Introductory Management Accounting (Cost behavior, Costing Systems – Job Costing, Process Costing and Activity Based Costing towards income determination) and explores other costing methodologies - Operations Costing and their applications – along with Cost Estimation models, Budgeting Processes, Cost-Volume-Profit analysis.  The emphasis is on the contribution of accounting information to management business decisions.  
Learning Outcomes:

Upon completion of this course, students will:

At the end of this course, students will have learned and demonstrated the ability to:

Contribute in the areas of management strategic planning and control systems on the job
Assist the controllership function with business decisions
Apply the concepts and demonstrate skills for profit analysis in different business organizations
Apply concepts in economics, finance, marketing, quantitative analysis that are management tools and are part of strategic cost/financial management
Discuss best practices as relating to businesses including those represented in class

Course Evaluation
The final grade is calculated based on the following components:

Class Participation, Attendance & Discussions  5%
Quizzes(in class) 15%
Mid-term Examination
Final Examination

Homework and Class Preparation: The solutions to the assigned homework questions are in the A2L course files.

Students are expected to read the assigned chapter prior to attending the class and to participate in class discussions. Assigned homework questions may be done either before or after taking up the subject in class. Quizzes must be written in class on the scheduled date. No reschedule will be made of missed quizzes; a 0 will be assigned to a missed quiz . Any assignments must be submitted on or before the due date to avoid mark penalty for late submission, and, in accordance with assignment instructions.  Assignments must be the student’s own work without collaboration with other students, any other person or any source except the course text.  McMaster University Academic Integrity policy governs student tests, exams and submissions.

Both the concepts and principles will be presented and discussed in each session with the assistance of power point slides for about the first half of the class time. The second half of each class will focus on applying the concepts to exercises and problems with the participation of students. Thus, it is imperative that students attend the entire session, in order to not only grasp the concepts and principles, but to see how they are applied. Students are expected to participate In class discussions, ask questions for clarification, and ask any appropriate questions.

Course Format:
This course is designed to present the fundamental concepts and theories in Intermediate Management Accounting and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
Assignment Submission:
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied. Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request.  

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance to McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified. Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy. Failure to contact the course instructor, in the case of missed coursework, or the Program Manager, in the case of a missed test/examination, within the specified 48-hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).

Academic Integrity
You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at

The following illustrates only three forms of academic dishonesty:
  1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
  2. Improper collaboration in-group work.
  3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:
Students with disabilities who require academic accommodations must contact the Student Accessibility Centre (SAS) to meet with an appropriate Disability Services Coordinator. To contact SAS, phone 905-525-9140 ext. 28652, or email For further information, consult McMaster University’s Policy for Academic Accommodation for Students with Disabilities.
On-line Elements:
In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.
Course Changes:
The instructor reserves the right to modify elements of the course and will notify students accordingly.
Course Withdrawal Policy:
Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (
Storm Closure Policy:
In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy:, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.
Grading Scale:
 Grade Equivalent
Grade Point
Equivalent Percentages
A+ 12 90-100
A 11 85-89
A- 10 80-84
B+ 9 77-79
B 8 73-76
B- 7 70-72
C+ 6 67-69
C 5 63-66
C- 4 60-62
D+ 3 57-59
D 2 53-56
D- 1 50-52
F 0 0-49
Course Schedule:


Chapter(s) Covered and Learning Objectives

Homework Questions


Review of Costing Methodologies (Job Order Costing, Activity-Based Costing, Absorption and Variable Costing, Process Costing)


Chapter 10 – Analysis of Cost Behaviour

·        Understanding cost behavior

·        Cost behavior, estimating

·        Evaluating and choosing cost drivers






Cases provided by instructor

·   Catering company case

·   Multiple Linear Regression case



Chapter 3 – Cost-Volume-Profit Analysis

·        Cost-Volume-Profit, (CVP), assumptions

·        Determine breakeven points

·        Apply Cost-Volume-Profit analysis for target after tax income planning


P3-28, P3-30, P3-33, P3-34, P3-39



Chapter 6 - Master Budgeting and Responsibility Accounting

·        Preparing budgets for merchandising and manufacturing operations

·        Responsibility centres and responsibility accounting



P6-33, P6-35, P6-36, P6-42




Chapter 6 (cont.)




Chapter 7 – Flexible Budgets, Variances, and Management Control I

·        Static budgets and flexible budgets

·        Standard costs used in variance analysis

·        Price and efficiency variance analysis


Chapter 8 - Flexible Budgets, Variances, and Management Control II

·        Methods to plan and control overhead costs

·        Planning variable and fixed overhead costs

·        Variance analysis static, flexible budgets

P7-30, P7-36, P7-37, P7-39, P7-40




E8-16, E8-28, P8-29, P8-36


MIDTERM EXAM (Chapters 3, 6, 7, 8, 10)


Chapter 11 – Decision Making and Relevant Information

·        Reviewing the decision making process

·        Identifying relevant costs and revenues in a decision

·        Application of models by a manager


E11-20, E11-21, E11-24,

E11-25, P11-36, P11-44


Chapter 11 (cont.)



Chapter 15 – Period Cost Allocation:  Joint Products and Byproducts

·        Apply cost allocation methods to allocation of joint costs

·        Distinguish between joint products and byproducts

·        Explain the relevance of joint costs whether to sell or further process


Chapter 16 – Revenue and Customer Profitability Analysis

·        Revenue allocation to individual products in a bundled package

·        Sales volume variance calculation

·        Calculating sales mix and market-size variances; market share variances

·        Preparing a customer profitability report 

E15-19, E15-23, E15-25








E16-20, E16-22, P16-27,

P16-33, P16-35, P16-38


Chapter 16 (cont.)



Chapter 19 – Inventory Cost Management Strategies

·        Cost categories associated with cost of goods sold

·        Managing inventory; just in time, material requirements planning

·        Supply chain inventory management



E19-18, E19-19, P19-26,

P19-27, P19-32, P19-33,



Chapter 19 (cont.)