Northern Virginia Community College – Annandale

Course Information: EFFECTIVE – Spring 2016

Acronym/Number: ACC-212 | Title: Principles of Accounting II | Credits: 3 Credit Hours

PREREQUISITE: ACC-211

COURSE DESCRIPTION: Introduces accounting principles with respect to cost and managerial accounting. Focuses on the application of accounting information with respect to product costing, as well as its use within the organization to provide direction and to judge performance. Lecture 3 hours per week. 3 credits.

GENERAL COURSE PURPOSE:This course is designed to give the beginning business student the basic ability to prepare, analyze and interpret accounting data for managerial decision making.

STUDENT LEARNING OUTCOMES: The student will be evaluated based upon following learning outcomes listed below.

EXAM CONTENT: Exams will cover the following learning outcomes:

Exam 1: 1, 2, and 3

Exam 2: 4, 5, and 6

Exam 3: 7, 8, and 9

Exam 4: 10 and 11

OUTCOME #1: MANAGERIAL ACCOUNTING (CH. 14)

1.1 Explain the purpose and nature of managerial accounting (to include differences between financial and managerial accounting).

1.2 Define product and period costs and explain how they impact financial statements.

1.3 Prepare a cost of goods manufactured schedule.

OUTCOME #2: JOB ORDER COSTING (CH. 15)

2.1 Describe important features of job order cost accounting.

2.2 Describe and record the flow of costs in a job order cost system.

2.3 Calculate predetermined overhead rates and over and under applied overhead.

OUTCOME #3: PROCESS COSTING (CH. 16)

3.1 Explain the similarities and differences between job order and process cost systems.

3.2 Explain the flow of costs in a process cost system.

3.3 Make the journal entries to assign manufacturing costs in a process cost system.

OUTCOME #4: ACTIVITY BASED COSTING (CH. 17)

4.1 Recognize the difference between traditional costing and activity-based costing.

4.2 Identify the steps in the development of an activity-based costing system.

4.3 Know how companies identify the activity cost pools used in activity-based costing.

4.4 Know how companies identify and use cost drivers in activity-based costing.

4.5 Explain just-in-time (JIT) processing.

OUTCOME #5: COST-VOLUME-PROFIT ANALYSIS (CH. 18 & 19)

5.1 Explain variable, fixed, and mixed costs.

5.2 Determine cost estimates using the scatter diagram and high-low methods of estimating costs.

5.3 List the five components of cost-volume-profit analysis.

5.4 Indicate what contribution margin is and how it can be expressed.

5.5 Calculate break-even point using three methods.

5.6 Explain the significance of Operating Leverage.

5.7 Explain the Theory of Constraints in relationship to limited resources.

OUTCOME #6: VARIABLE COSTING AND PERFORMANCE REPORTING (APPENDIX 19A)

6.1 Compute unit cost under both absorption and variable costing.

6.2 Reconcile income between variable and absorption costing methods.

OUTCOME #7: INCREMENTAL ANALYSIS (CH. 20)

7.1 Describe relevant costs that are helpful in incremental analysis.

7.2 Identify the relevant costs in accepting an order at a special price.

7.3 Identify the relevant costs in a make-or-buy decision.

7.4 Identify the relevant costs in determining whether to sell or process materials further.

7.5 Identify the relevant costs in deciding whether to eliminate an unprofitable segment or product.

OUTCOME #8: BUDGETARY PLANNING (CH. 21)

8.1 Indicate the benefits of budgeting.

8.2 Identify the budgets that comprise master budget.

OUTCOME #9: BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING (CH. 22)

9.1 Prepare a flexible budget.

9.2 Explain the basis and formula (including ROI and residual income) used in evaluating performance in investment centers.

OUTCOME #10: STANDARD COSTS AND BALANCED SCORECARD (CH. 23)

10.1 Identify the advantages of standard costs.

10.2 Describe how companies set standards.

10.3 Calculate the formulas for determining direct materials and direct labor variances.

10.4 Calculate the formula for determining the total manufacturing overhead variance.

10.5 Describe the balanced scorecard approach to performance evaluation.

OUTCOME #11: PLANNING FOR CAPITAL INVESTMENTS (CH. 24)

11.1 Evaluate capital investment proposals by using the cash payback technique.

11.2 Evaluate capital investment proposals by using the net present value method.

11.3 Evaluate capital investment proposals by using the profitability index.

11.4 Evaluate capital investment proposals by using the internal rate of return method.

11.5 Evaluate capital investment proposals by using the annual rate of return method.