IAF530 - Management Accounting - Intermediate

Subject Title
Management Accounting - Intermediate

Subject Description
Continuing from the fundamentals covered in Management Accounting - Introductory, this course covers the intermediate concepts including the impact of organizational structure on cost structures, transfer pricing, cost allocation methods, flexible budgets and variance analysis, capital budgeting for long-term projects, the design and implementation of effective management control systems, and their impact on organizational behaviour. Ethical standards for and moral responsibilities of managers will be emphasized throughout the course. Pre-requisite: BAB240

Credit Status
One degree-level credit

Learning Outcomes
Upon successful completion of this subject the student will be able to:

A. Management Accounting and Decision Making
1. Describe the impact of management control in centralized, decentralized and matrix organizations and evaluate and differentiate the challenges of management control in both manufacturing and service organizations including those in the public sector.
2. Define the managerial accountant's role in the decision-making process and analyze the steps needed to make financial decisions.

B. Activity-Based Management
1. Describe and justify the implementation of cost allocation and Activity Based Costing methodologies.
2. Identify the design of and use of Activity Based Costing systems.
3. Compute and defend the application of overhead applications.

C. Contemporary Approaches To Costing and Pricing
1. Develop and explain various budgets [static, flexible, master] and variances [price, efficiency, volume].
2. Explain the features of a Standard Cost system and its role in variance analysis.
3. Demonstrate the appropriate use of variance analysis by managers in specific situations.
4. Describe and evaluate the impact of various costing methods on the financial statements.
5.. Compare and contrast contemporary approaches to product costing and pricing including target costing, benchmarking, Kaizen, total life cycle costing, value engineering and quality costing including cost-plus pricing.

D. Making Short Run Decisions
1. Review how managers identify, analyze and assess relevant information in order to make decisions relating to special sales orders, make v. buy, add v. drop, process v. sell joint products, and other limited resources.

E. Decision Framing
1. Analyze and assess the principles of effective decision framing including the appropriate use of a regression model.
2. Analyze and formulate a linear programming model including objective function and all constraints to evaluate proposed production plans including purchase and sale timing, add-or-drop, make or buy decisions.

F. Performance Evaluation
1. Explain responsibility accounting and transfer pricing, their applications, limitations and relationship to agency theory.
2. Analyze, apply and evaluate economic value-added, balanced scorecard and transfer pricing policies with regard to the impact on performance evaluation.
3. Assess the impact of performance evaluation measures on management decision making with regard to long-term investments.

G. Ethics, Society and Accountants, and Integration
1. Analyze and evaluate trust, ethical behaviour and the role of the accountant.
2. Evaluate the role of social responsibility relative to competitive markets and organizational goals and objectives.
3. Integrate the application of management accounting information to financial accounting reporting and interpretation using the case study format.

Essential Employability Skills

    •  Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

    •  Respond to written, spoken, or visual messages in a manner that ensures effective communication.

    •  Execute mathematical operations accurately.

    •  Apply a systematic approach to solve problems.

    •  Use a variety of thinking skills to anticipate and solve problems.

    •  Locate, select, organize, and document information using appropriate technology and information systems.

    •  Analyze, evaluate, and apply relevant information from a variety of sources.

    •  Show respect for diverse opinions, values, belief systems, and contributions of others.

    •  Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

    •  Manage the use of time and other resources to complete projects.

    •  Take responsibility for one's own actions, decisions, and consequences.

Academic Integrity
Seneca upholds a learning community that values academic integrity, honesty, fairness, trust, respect, responsibility and courage. These values enhance Seneca's commitment to deliver high-quality education and teaching excellence, while supporting a positive learning environment. Ensure that you are aware of Seneca's Academic Integrity Policy which can be found at: http://www.senecapolytechnic.ca/about/policies/academic-integrity-policy.html Review section 2 of the policy for details regarding approaches to supporting integrity. Section 2.3 and Appendix B of the policy describe various sanctions that can be applied, if there is suspected academic misconduct (e.g., contract cheating, cheating, falsification, impersonation or plagiarism).

Please visit the Academic Integrity website http://open2.senecac.on.ca/sites/academic-integrity/for-students to understand and learn more about how to prepare and submit work so that it supports academic integrity, and to avoid academic misconduct.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecapolytechnic.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Accessibility Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Camera Use and Recordings - Synchronous (Live) Classes
Synchronous (live) classes may be delivered in person, in a Flexible Learning space, or online through a Seneca web conferencing platform such as MS Teams or Zoom. Flexible Learning spaces are equipped with cameras, microphones, monitors and speakers that capture and stream instructor and student interactions, providing an in-person experience for students choosing to study online.

Students joining a live class online may be required to have a working camera in order to participate, or for certain activities (e.g. group work, assessments), and high-speed broadband access (e.g. Cable, DSL) is highly recommended. In the event students encounter circumstances that impact their ability to join the platform with their camera on, they should reach out to the professor to discuss. Live classes may be recorded and made available to students to support access to course content and promote student learning and success.

By attending live classes, students are consenting to the collection and use of their personal information for the purposes of administering the class and associated coursework. To learn more about Seneca's privacy practices, visit Privacy Notice.