• Recognize the concerns of management accounting.
• Recognize the function of management in planning, controlling and decision making, and the role of the financial management.
• Identify some popular certificates that recognize the expertise in the fields of cost/managerial accounting and internal auditing
• Identify examples of each of the basic cost elements involved in the manufacture of the product.
• Recognize various cost concepts and differentiate between the traditional income statement and the contribution income statement.
• Recognize different approaches to costing such as job order costing and the objectives of a cost accounting system.
• Identify the benefits and disadvantages of different costing approaches.
• Recognize cost components used for activity-based costing (ABC).
• Recognize attributes tracked to in a value chain analysis.
• Recognize various contribution margin concepts.
• Identify several factors used to compute a cost-volume-profit analysis.
• Calculate break-even points and recognize ways to the reduce break-even point.
• Recognize the advantages and disadvantages of the classifying cost behaviors and types.
• Recognize methods for estimating the cost-volume formula.
• Recognize major steps in the preparation of a budget.
• Recognize how a financial modeling approach may be used in the planning process.
• Distinguish among three types of responsibility centers.
• Identify different types of variances for manufacturing costs and the managerial significance of these variances.
• Identify the different variance analysis techniques for factory overhead.
• Identify the primary differences between centralized and decentralized in performance evaluation.
• Recognize how ROI, RI (residual income), and EVA (economic value added) measurements affect the division’s investment decision.
• Recognize the basic features of the Corporate Balanced Scorecard.
• Identify the costs that are relevant for a particular decision.
• Recognize several concepts involved with the time value of money.
• Identify the types and special features of several capital budgeting techniques.
• Calculate internal rate of return.
• Recognize how income tax factors affect investment decisions.

CHAPTER 1: INTRODUCTION TO MANAGEMENT ACCOUNTING

NATURE AND SCOPE OF MANAGEMENT ACCOUNTING
COST ACCOUNTING STANDARDS BOARD
MANAGEMENT ACCOUNTING PHILOSOPHIES
PROFESSIONAL CERTIFICATIONS

CHAPTER 2: COST CLASSIFICATIONS AND PROFIT CONCEPTS
COST CLASSIFICATIONS
MERCHANDISING VS. MANUFACTURING ORGANIZATIONS
CONTRIBUTION INCOME STATEMENT

CHAPTER 3: JOB ORDER COSTING
JOB ORDER VS. PROCESS COSTING
OVERHEAD APPLICATION
COMPREHENSIVE ILLUSTRATION

CHAPTER 4: OVERHEAD ALLOCATION
WEAKNESS IN TRADITIONAL METHODS
ACTIVITY-BASED MANAGEMENT

CHAPTER 5: COST-VOLUME-PROFIT ANALYSIS
FUNDAMENTALS
WHAT-IF ANALYSIS
SALES MIX

CHAPTER 6: COST BEHAVIOR ANALYSIS
TYPES OF COST BY BEHAVIOR
COST ESTIMATION METHODS

CHAPTER 7: BUDGETING SYSTEM
TYPES OF BUDGETS
OPERATING BUDGET
FINANCIAL BUDGET

CHAPTER 8: CONTROL OF COST CENTER
RESPONSIBILITY ACCOUNTING
STANDARD COST SYSTEM
VARIANCE ANALYSIS
USE OF FLEXIBLE BUDGETS
NONFINANCIAL PERFORMANCE MEASURES

CHAPTER 9: EVALUATION OF INVESTMENT CENTERS
RATE OF RETURN ON INVESTMENT
RESIDUAL INCOME
INVESTMENT DECISIONS: ROI VS. RI
OTHER MATTERS

CHAPTER 10: MAKING SHORT-TERM DECISIONS
RELEVANT COSTS DETERMINATION
TYPES OF SHORT-TERM DECISIONS
OTHER MATTERS

CHAPTER 11: MAKING LONG-TERM DECISIONS
FEATURES OF LONG-TERM INVESTMENT
THE CONCEPT OF TIME VALUE OF MONEY
METHODS OF EVALUATING INVESTMENT PROJECTS

CHAPTER 12: THE EFFECT OF INCOME TAX ON INVESTMENT DECISIONS
AFTER-TAX CASH INFLOWS DETERMINATION
TRADITIONAL DEPRECIATION METHODS
MODIFIED ACCELERATED COST RECOVERY SYSTEM