Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate

Accounting

Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 929 - Intermediate Management Accounting C32

Academic Credit Value:
3 units
Course Delivery Mode:
Online Self-Study (OSS)
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 928 Introductory Management Accounting and ACC 925 Introductory Financial Accounting or equivalencies. 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):
N/A
Instructor Name:
Michael Michalski
Course Dates:
07/15/2019 - 12/14/2019



Required Course Materials:
Horngren, Datar, Rajan, Beaubien, Graham: Cost Accounting A Managerial Emphasis, Seventh Canadian Edition, Pearson Canada Inc., Toronto, Ontario
Optional Course Materials:
N/A
Course Description:

ACC 929 Intermediate Management Accounting is part of a sequence of several courses in the Accounting Diploma Program offered by McMaster University. As an intermediate course, it builds on Introductory Management Accounting and is designed to help you build a foundation of knowledge and skills in preparation for other courses in management accounting.

Specifically, this course focuses on the management tools, systems and application of best practices in Management Accounting towards overall planning & controls in organizations. It is an extension of the concepts already learned in Introductory Management Accounting (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:
At the end of this course, students will have been exposed to and demonstrated the ability to:
  • Contribute in the areas of management 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 financial management
  • Discuss best practices as relating to businesses including those represented in class
Course Evaluation
Method of Evaluation:
Assignments
(5 @ 8%) 
40%
Final Examination 60%
Total 100%

NOTE:  A passing grade on the final examination is required to pass the course. 

The final exam must be written on or before your course end date/final exam date. Students who have submitted all assignments ahead of schedule may opt to write their final examination prior to the posted examination/course end date. Although students are permitted to accelerate through course material, no student will be permitted to schedule/sit the final examination earlier than two (2) months post course start date. After the final exam is written no further assignment submissions will be accepted. 

Course Format:
Unit 1:  Quantitative Analyses of Cost Functions and Decision Making & Relevant Information

Overview

Unit 1 deals with the variety of cost behaviour and analyzing those differences using various tools of quantitative analysis.  This chapter describes a number of quantitative techniques that while useful, are beyond the scope of this course. As a result, only a portion of this chapter will be part of our Management Accounting study. Students wishing greater knowledge of the techniques described in this chapter should enroll in a course on quantitative analysis.

In addition to above, Unit 1 examines the issue of which costs can be considered relevant versus those that may be irrelevant in any cost estimation situation. Additionally, the five step decision-making process is introduced. This issue is expanded to provide guidance when the Management Accountant is making decisions, specifically in relation to:

Accepting One-Time Special Orders,
Make or Buy Decisions,
Customer Profitability,     
The weight and mix of quantitative and qualitative aspects of any decision

Key concepts and outcomes include:
*Understanding cost behavior
*Cost behavior, estimating
*Evaluating and choosing cost drivers
*Reviewing the decision making process
*Identifying relevant costs and revenues in a decision
*Application of models by a manager

Unit 1 Resource Materials:
∙ Text: Chapters 10 & 11 (See Module for specific pages)
∙ Course Guide (or A2L): Module notes for Unit I
∙ Practice Exercises for Chapters 10 & 11
∙ Optional Resource: Publisher’s Website  (MyAccountingLab)
∙ Assignment One: Posted on our Avenue to Learn site

Unit I is divided into the following two (2) modules:
Module 1 – Quantitative Analyses of Cost Functions
Module 2 – Decision Making and Relevant Information

Learning Outcomes
Following the completion of Unit I the student will be able to:
  • Use standard mathematical notation to specify a cost function that can be graphed as a straight line;
  • Have an understanding the various methods of cost estimation and use historical data to predict future costs;
  • Describe the impact of time as a cost driver;
  • Describe quality control and its implications as a cost driver;
  • Contrast relevant and irrelevant costs and revenues as well as quantitative and qualitative information influencing decisions;
  • Identify the differences among relevant costs for short-term and long-term production output decisions;
  • Explain why opportunity cost is relevant and book value is irrelevant in decision making;
  • Identify key concepts and apply them to product and customer mix decisions;
  • Explain how to reduce the negative effects and conflicts arising in relevant-cost analyses.
  •  



    Unit 2:  Cost-Volume-Profit Analysis & Cost Allocation – Joint & Byproducts

    Overview

    This unit provides some very helpful concepts that the Management Accountant will likely use continually in their work.  The essence of this unit and corresponding chapters is the use of “what if” analysis.  “What if” we increase selling price – what will be in impact on operating income?  “What if” variable coats increase by 5% - how will operating income be affected? This type of analysis is especially suited to the use of spreadsheet software that enables a Management Accountant to easily find the answers to these “what if” hypotheses.

    Also examined in this unit is the issue of how to allocate common processing costs where, at the end of that processing, two or more products emerge. This concept of allocating common costs to the various joint products is further examined in the context of the split off point, byproducts, scrap and disposal costs.

    Key concepts and outcomes:
    *Cost-Volume-Profit, (CVP), assumptions
    *Determine breakeven points
    *Apply Cost-Volume-Profit analysis for target after tax income planning
    *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
    *Account for by-products   

    Unit 2 Resource Materials:
    ∙ Text: Chapters 3 & 15 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit II
    ∙ Practice Exercises for Chapters 3 & 15
    ∙ Optional Resource: Publisher’s Website (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit II is divided into the following two (2) modules:
    Module 1 –Cost-Volume-Profit Analysis
    Module 2 – Cost Allocation:  Joint Products and Byproducts

    Learning Outcomes
    Following the completion of Unit II the student will be able to:
  • Identify the essential elements of cost-volume-process profit analysis and calculate the break-even point (BEP);
  • Apply the CVP model to calculate a target operating profit before tax and interest;
  • Distinguish among contribution, gross, operating, and net income margins, and apply the CVP model to target net income;
  • Apply the CVP model in decision-making and explain how sensitivity analyses can help managers both identify and manage risk;
  • Interpret the results of CVP analysis in complex multi-product and multiple cost driver situations.
  • Distinguish among different types of saleable products, scrap and toxic waste;
  • Analyze the physical measure and sales value at splitoff methods to allocate joint costs;
  • Evaluate two market-based cost allocation methods to identify which is most appropriate to decide whether to sell at splitoff or process further;
  • Identify the strategic implications of a decision to implement one joint cost allocation method;
  • Account for byproducts using two different methods.
  •  



    Unit 3:  Master Budget & Responsibility Accounting

    Unit Overview

    Unit 3 is the first in a series that are thematically linked.  The ideas of budgeting, and variance analysis are clearly linked.  This particular unit examines budgeting and includes the concept of the master budget as the roadmap for organizational decisions made in a structured way.  The budgeting cycle is described and the various subsidiary budgets are introduced. The concept of responsibility center accounting is reviewed, where managers are held accountable to achieving budget targets for their area of responsibility. Finally cash budgeting is a significant part of the unit, where issues related to forecasting cash inflows and outflows are outlined. Techniques to manage cash flow and the appropriate actions associated with identified cash shortfalls or cash excesses are also reviewed.  

    Key concepts and outcomes include:
    *Budgets and planning and management accounting
    *Preparing budgets
    *Responsibility centers and responsibility accounting

    Unit 3 Resource Materials:
    ∙ Text: Chapter 6 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit III
    ∙ Practice Exercises for Chapter 6
    ∙ Optional Resource: Publisher’s Website (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit III is divided into the following module:
    Module 1 –Master Budget and Responsibility Accounting

    Learning Outcomes
    Following the completion of Unit III the student will be able to:
  • Distinguish the long-term from the short-term benefits of budgets (pro forma financial statements);
  • Prepare a master operating budget and all supporting budget or schedules;
  • Prepare a cash budget;
  • Distinguish among sensitivity analysis, Kaizen budgeting and activity based budgeting;
  • Contrast responsibility against controllability.
  • Assignment Submission:
    Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
    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.   NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.

    Policy & Procedures:

    Academic Regulations (Attendance, Coursework, Tests/Exams):
    In accordance with 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/Program Associate 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/Program Associate, 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 http://www.mcmaster.ca/academicintegrity/

    The following illustrates only three forms of academic dishonesty:
    Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
    Improper collaboration in-group work.
    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 sas@mcmaster.ca. 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.
    Turnitin.com:
    In this course, we will be using a web-based service (Turnitin.com) to reveal plagiarism.  Students will be expected to submit their work electronically to Turnitin.com so that it can be checked for academic dishonesty.  Students who do not wish to submit their work to Turnitin.com must still submit a copy to the assigned Assignment folder and add a note in the comment section that they do not wish to have the paper scanned by Turnitin.  Those files will not be selected for submission.  No penalty will be assigned to a student who does not submit work to Turnitin.com.  All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.).  To see the Turnitin.com Policy, please go to www.mcmaster.ca/academicintegrity.
    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 (https://www.mcmastercce.ca/cce-policies#Dropping). 
    Storm Closure Policy:
    In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy: https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, 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:
    Unit 1:  Quantitative Analyses of Cost Functions and Decision Making & Relevant Information

    Overview

    Unit 1 deals with the variety of cost behaviour and analyzing those differences using various tools of quantitative analysis.  This chapter describes a number of quantitative techniques that while useful, are beyond the scope of this course. As a result, only a portion of this chapter will be part of our Management Accounting study. Students wishing greater knowledge of the techniques described in this chapter should enroll in a course on quantitative analysis.

    In addition to above, Unit 1 examines the issue of which costs can be considered relevant versus those that may be irrelevant in any cost estimation situation. Additionally, the five step decision-making process is introduced. This issue is expanded to provide guidance when the Management Accountant is making decisions, specifically in relation to:

    Accepting One-Time Special Orders,
    Make or Buy Decisions,
    Customer Profitability,     
    The weight and mix of quantitative and qualitative aspects of any decision

    Key concepts and outcomes include:
    *Understanding cost behavior
    *Cost behavior, estimating
    *Evaluating and choosing cost drivers
    *Reviewing the decision making process
    *Identifying relevant costs and revenues in a decision
    *Application of models by a manager

    Unit 1 Resource Materials:
    ∙ Text: Chapters 10 & 11 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit I
    ∙ Practice Exercises for Chapters 10 & 11
    ∙ Optional Resource: Publisher’s Website  (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit I is divided into the following two (2) modules:
    Module 1 – Quantitative Analyses of Cost Functions
    Module 2 – Decision Making and Relevant Information

    Learning Outcomes
    Following the completion of Unit I the student will be able to:
  • Use standard mathematical notation to specify a cost function that can be graphed as a straight line;
  • Have an understanding the various methods of cost estimation and use historical data to predict future costs;
  • Describe the impact of time as a cost driver;
  • Describe quality control and its implications as a cost driver;
  • Contrast relevant and irrelevant costs and revenues as well as quantitative and qualitative information influencing decisions;
  • Identify the differences among relevant costs for short-term and long-term production output decisions;
  • Explain why opportunity cost is relevant and book value is irrelevant in decision making;
  • Identify key concepts and apply them to product and customer mix decisions;
  • Explain how to reduce the negative effects and conflicts arising in relevant-cost analyses.
  •  


     

    Unit 2:  Cost-Volume-Profit Analysis & Cost Allocation – Joint & Byproducts

    Overview

    This unit provides some very helpful concepts that the Management Accountant will likely use continually in their work.  The essence of this unit and corresponding chapters is the use of “what if” analysis.  “What if” we increase selling price – what will be in impact on operating income?  “What if” variable coats increase by 5% - how will operating income be affected? This type of analysis is especially suited to the use of spreadsheet software that enables a Management Accountant to easily find the answers to these “what if” hypotheses.

    Also examined in this unit is the issue of how to allocate common processing costs where, at the end of that processing, two or more products emerge. This concept of allocating common costs to the various joint products is further examined in the context of the split off point, byproducts, scrap and disposal costs.

    Key concepts and outcomes:
    *Cost-Volume-Profit, (CVP), assumptions
    *Determine breakeven points
    *Apply Cost-Volume-Profit analysis for target after tax income planning
    *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
    *Account for by-products   

    Unit 2 Resource Materials:
    ∙ Text: Chapters 3 & 15 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit II
    ∙ Practice Exercises for Chapters 3 & 15
    ∙ Optional Resource: Publisher’s Website (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit II is divided into the following two (2) modules:
    Module 1 –Cost-Volume-Profit Analysis
    Module 2 – Cost Allocation:  Joint Products and Byproducts

    Learning Outcomes
    Following the completion of Unit II the student will be able to:
  • Identify the essential elements of cost-volume-process profit analysis and calculate the break-even point (BEP);
  • Apply the CVP model to calculate a target operating profit before tax and interest;
  • Distinguish among contribution, gross, operating, and net income margins, and apply the CVP model to target net income;
  • Apply the CVP model in decision-making and explain how sensitivity analyses can help managers both identify and manage risk;
  • Interpret the results of CVP analysis in complex multi-product and multiple cost driver situations.
  • Distinguish among different types of saleable products, scrap and toxic waste;
  • Analyze the physical measure and sales value at splitoff methods to allocate joint costs;
  • Evaluate two market-based cost allocation methods to identify which is most appropriate to decide whether to sell at splitoff or process further;
  • Identify the strategic implications of a decision to implement one joint cost allocation method;
  • Account for byproducts using two different methods.
  •  


     

    Unit 3:  Master Budget & Responsibility Accounting

    Unit Overview

    Unit 3 is the first in a series that are thematically linked.  The ideas of budgeting, and variance analysis are clearly linked.  This particular unit examines budgeting and includes the concept of the master budget as the roadmap for organizational decisions made in a structured way.  The budgeting cycle is described and the various subsidiary budgets are introduced. The concept of responsibility center accounting is reviewed, where managers are held accountable to achieving budget targets for their area of responsibility. Finally cash budgeting is a significant part of the unit, where issues related to forecasting cash inflows and outflows are outlined. Techniques to manage cash flow and the appropriate actions associated with identified cash shortfalls or cash excesses are also reviewed.  

    Key concepts and outcomes include:
    *Budgets and planning and management accounting
    *Preparing budgets
    *Responsibility centers and responsibility accounting

    Unit 3 Resource Materials:
    ∙ Text: Chapter 6 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit III
    ∙ Practice Exercises for Chapter 6
    ∙ Optional Resource: Publisher’s Website (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit III is divided into the following module:
    Module 1 –Master Budget and Responsibility Accounting

    Learning Outcomes
    Following the completion of Unit III the student will be able to:
  • Distinguish the long-term from the short-term benefits of budgets (pro forma financial statements);
  • Prepare a master operating budget and all supporting budget or schedules;
  • Prepare a cash budget;
  • Distinguish among sensitivity analysis, Kaizen budgeting and activity based budgeting;
  • Contrast responsibility against controllability.
  •  



    Unit 4:  Flexible Budgets, Variances & Management Controls

    Unit Overview

    Unit 4 is linked to budgeting in that it reviews how variance analysis is conducted when actual results at the end of a period are compared to the budget for that period. This unit highlights a key role for the Management Accountant in the control function and the attention-directing aspect of improving organizational performance. Control, as defined in chapter 1 of the text, is “(a) deciding on and taking actions that implement the planning decisions, and (b) deciding on performance evaluation and the related feedback that will help future decision making.” Thus actual results are compared to planned or budgeted amounts for control purposes.  Of special interest is the use of flexible budgets and variance analysis in performance measurement and evaluation as an aspect of control.

    Some variance analysis techniques and concepts introduced in the unit include:
      -  Identifying the difference between a flexible budget and a static budget,
       - Developing a flexible budget for variance analysis purposes,
       - Computing flexible budget, sales-volume, price and efficiency variances,
       - Performance measurement using variances.

    Unit 4 also expands on the study of variance analysis.  More sophisticated variance analysis tools are introduced.  

    Key concepts and outcomes include:
    *Static budget and flexible budget
    *Standard costs used in variance analysis
    *Price and efficiency variance analysis  
    *Methods to plan and control overhead costs
    *Planning variable and fixed overhead costs
    *Variance analysis static, flexible budgets

    Unit 4 Resource Materials:
    ∙ Text: Chapters 7 & 8 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit IV
    ∙ Practice Exercises for Chapters 7 & 8
    ∙ Optional Resource: Publisher’s Website (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit IV is divided into the following modules:
    Module 1 –Flexible Budgets, Variances, and Management Control, Part I
    Module 2 – Flexible Budgets, Variances, and Management Control, Part II

    Learning Outcomes
  • Following the completion of Unit IV the student will be able to:
  • Distinguish between a static budget and a flexible budget;
  • Develop flexible budgets and calculate flexible-budget Level 2 and 3 variances for direct cost categories;
  • Distinguish between Levels 3 and 4 variance analysis for substitutable inputs, and calculate Level 4 direct mix and yield variances;
  • Undertake variance analysis in activity-based costing systems;
  • Describe how managers use variance analyses;
  • Assign MOH fixed coats, then calculate and analyze flexible-budget variances;
  • Establish variable overhead cost-allocation rates; calculate and analyze flexible budget variances;
  • Calculate ABC overhead variances;
  • Integrate the fixed and variable overhead cost variance analyses to reconcile the actual overhead incurred with overhead allocated;
  • Analyze nonmanufacturing variance.

  •  



    Unit 5:  Revenues & Customer Profitability Analysis/ Cost Management: Quality, Time and the Theory of Constraints and Inventory Cost Management Strategies

    Unit Overview

    The theme of variance analysis continues in Unit 5, as this time, revenue variances are examined more closely. Two other areas related to revenue analysis are also studied.  The concept of revenue allocation for bundled products is introduced, where one flat price is paid for a bundle of products, that priced individually would cost the customer more.  The question of how to apply the reduced bundled revenue to each of the individual products is studied. The third revenue-related subject examined in Unit 5 is examining customer profitability, that is, which customers contribute most to revenues and which contribute less.

    Also introduced in this unit is the concept of quality and the costs associated with achieving quality. Management accountants assist managers in taking initiatives in the areas of quality and time by maintaining and presenting financial and nonfinancial measures of customer satisfaction and internal performance. The concept of time as a competitive weapon is reviewed.

    We finish up this unit looking at the issue of inventory management. Inventory management principles are reviewed with more significant time spent on reviewing Just-In-Time delivery of previously inventoried materials. The concept of Backflush Costing is introduced as a consequence of the rise in JIT delivery of materials.

    Key concepts and outcomes include:
    *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   
    *Identifying cost categories of a cost of quality program
    *Identifying relevant costs and benefits of quality improvements
    *Benefits of financial and non-financial measures of quality
    *Analyze strengths and weaknesses of the theory of constraints
    *Cost categories associated with cost of goods sold
    *Managing inventory; just in time, material requirements planning
    *Supply chain inventory management

    Unit 5 Resource Materials:
    ∙ Text: Chapters 16 & 19 (See Module for specific pages)
    ∙ Course Guide (or A2L): Module notes for Unit V
    ∙ Practice Exercises for Chapters 16 & 19
    ∙ Optional Resource: Publisher’s Website (MyAccountingLab)
    ∙ Assignment One: Posted on our Avenue to Learn site

    Unit V is divided into the following two (2) modules:
    Module 1 –Revenue and Customer Profitability Analysis
    Module 2 – Inventory Cost Management Strategies

    Learning Outcomes 
  • Following the completion of Unit V the student will be able to:
  • Select a method and allocate revenue from a product bundle to its distinct components;
  • Apply and ABC system to allocate costs when the customer is the cost object;
  • Calculate and interpret four levels of revenue variance analysis;
  • Generate a customer profitability profile;
  • Analyze relevant profitability data and decide whether to drop or add customers.
  • Evaluate relevant data and decide on the economic order quantity (EOQ);
  • Resolve conflicts that can arise from results of EOQ and performance models;
  • Analyze the relevant benefits and costs of JIT alternatives;
  • Evaluate and decide upon an appropriate backflush costing method.​