Managerial Accounting: Cost Behaviors, Systems, and Analysis

Start Date: 07/05/2020

Course Type: Common Course

Course Link: https://www.coursera.org/learn/accounting-for-managers

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About Course

In this course, you will learn how to use accounting to facilitate and align decisions made by owners, managers, and employees. You will learn how accountants create, organize, interpret, and communicate information that improves internal processes, and allows organizations to identify and leverage opportunities to create value within the supply chain and with customers. Upon successful completion of this course, you will be able to: • Understand what managerial accounting is and why it is important. • Describe fundamental concepts of managerial accounting. • Apply the financial perspective of accounting for costs. • Identify problems associated with relying on financial accounting information for internal decision making. • Organize cost information according to the decision-making needs of the organization. • Apply activity-based costing (ABC) and recognize the influence of setting and decision characteristics on the relevance of ABC systems. • Address common "what-if" questions using cost-volume-profit (CVP) analysis. • Apply CVP analysis in a variety of scenarios. This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

Course Syllabus

Organizations can organize cost information however best suits their decisions. In this module, we introduce the role of costing systems, identify some example systems and settings in which they are most useful, and explore how accounting for overhead costs influences the value of cost information.

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Course Introduction

Managerial Accounting: Cost Behaviors, Systems, and Analysis In this course, you will learn to understand the basic concepts of managerial accounting, and how to interpret financial information that managers present. You will learn about the primary cost variables that affect the budget and the cost function. You will gain a firm understanding of the operational and financial aspects of financial information. You will also learn the value chain to analyze cash flow from the investment management industry. You will learn how to measure asset values and the impact of debt. You will also learn how to measure liabilities and to analyze asset values. You will gain a firm grasp of the interrelations between financial and non-financial information presented in the budget. You will also learn the importance of asset value measurement and the concept of asset value measurement. Upon successful completion of this course, you will be able to: 1. Evaluate financial statements presented by managers 2. Interpret key concepts presented by managers 3. Estimate the value of an asset by using key ratios 4. Define and use the components of an asset value measurement matrix 5. Estimate the liabilities of an asset by using key ratios 6. Define the concept of asset value measurement and use the components of an asset value measurement matrix 7.

Course Tag

Management Accounting Cost Accounting Activity Based Costing Cost

Related Wiki Topic

Article Example
Cost accounting Unlike the accounting systems that help in the preparation of financial reports periodically, the cost accounting systems and reports are not subject to rules and standards like the Generally Accepted Accounting Principles (GAAP). As a result, there is wide variety in the cost accounting systems of the different companies and sometimes even in different parts of the same company or organization.
Accounting Accounting information systems have reduced the cost of accumulating, storing, and reporting managerial accounting information and have made it possible to produce a more detailed account of all data that is entered into any given system.
Cost–volume–profit analysis Cost–volume–profit (CVP), in managerial economics, is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run decisions.
Cost accounting All types of businesses, whether service, manufacturing or trading, require cost accounting to track their activities. Cost accounting has long been used to help managers understand the costs of running a business. Modern cost accounting originated during the industrial revolution, when the complexities of running a large scale business led to the development of systems for recording and tracking costs to help business owners and managers make decisions.
Managerial risk accounting As a part of the management accounting system and function, managerial risk accounting has the following two main purposes:
Cost accounting An important part of standard cost accounting is a variance analysis, which breaks down the variation between actual cost and standard costs into various components (volume variation, material cost variation, labor cost variation, etc.) so managers can understand "why costs were different from what was planned" and take appropriate action to correct the situation.
Cost accounting Cost accounting is a process of collecting, recording, classifying, analyzing, summarizing, allocating and evaluating various alternative courses of action & control of costs. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future.
Managerial risk accounting Managerial Risk Accounting is concerned with the generation, dissemination and use of risk related accounting information to managers within organisations to enable them to judge and shape the risk situation of the organisation according to the objectives of the organisation.
Cost accounting The following are different cost accounting approaches:
Cost accounting The second (and more important) thrust of Lean Accounting is to fundamentally change the accounting, control, and measurement processes so they motivate lean change & improvement, provide information that is suitable for control and decision-making, provide an understanding of customer value, correctly assess the financial impact of lean improvement, and are themselves simple, visual, and low-waste. Lean Accounting does not require the traditional management accounting methods like standard costing, activity-based costing, variance reporting, cost-plus pricing, complex transactional control systems, and untimely & confusing financial reports. These are replaced by:
Standard cost accounting An important part of standard cost accounting is a variance analysis, which breaks down the variation between actual cost and standard costs into various components (volume variation, material cost variation, labor cost variation, etc.) so managers can understand "why costs were different from what was planned" and take appropriate action to correct the situation.
Managerial finance Managerial finance is an interdisciplinary approach that borrows from both managerial accounting and corporate finance.
Standard cost accounting Standard cost accounting is a traditional cost accounting method introduced in the 1920s, as an alternative for the traditional cost accounting method based on historical costs.
Cost Accounting Standards In 1970, Congress established the original Cost Accounting Standards Board (CASB) to 1) promulgate cost accounting standards designed to achieve uniformity and consistency in the cost accounting principles followed by defense contractors and subcontractors in excess of $100,000 and 2) establish regulations to require defense contractors and subcontractors, as a condition of contracting, to disclose in writing their cost accounting practices, to follow the disclosed practices consistently and to comply with promulgated cost accounting standards. After adopting 19 standards, the original CASB was dissolved on September 30, 1980; the standards, though, remained active.
Accounting Management accounting focuses on the measurement, analysis and reporting of information that can help managers in making decisions to fulfil the goals of an organization. In management accounting, internal measures and reports are based on cost-benefit analysis, and are not required to follow the generally accepted accounting principle (GAAP). In 2014 CIMA created the Global Management Accounting Principles (GMAPs). The result of research from across 20 countries in five continents, the principles aim to guide best practice in the discipline.
Cost accounting 1. Cost Accounting, 3rd edition - Md. Omar Faruk, Sohel Ahmed, Sharif Hossain.
Management accounting Grenzplankostenrechnung is a German costing methodology, developed in the late 1940s and 1960s, designed to provide a consistent and accurate application of how managerial costs are calculated and assigned to a product or service. The term Grenzplankostenrechnung, often referred to as GPK, has best been translated as either "marginal planned cost accounting" or "flexible analytic cost planning and accounting".
Environmental full-cost accounting Environmental full-cost accounting (EFCA) is a method of cost accounting that traces direct costs and allocates indirect costs by collecting and presenting information about the possible environmental, social and economical costs and benefits or advantagesin short, about the "triple bottom line"for each proposed alternative. It is also known as true-cost accounting (TCA), but, as definitions for "true" and "full" are inherently subjective, experts consider both terms problematical.
Cost accounting In modern cost account of recording historical costs was taken further, by allocating the company's fixed costs over a given period of time to the items produced during that period, and recording the result as the total cost of production. This allowed the "full cost" of products that were not sold in the period they were produced to be recorded in inventory using a variety of complex accounting methods, which was consistent with the principles of GAAP (Generally Accepted Accounting Principles). It also essentially enabled managers to ignore the fixed costs, and look at the results of each period in relation to the "standard cost" for any given product.
Managerial risk accounting Existing accounting systems are primarily "monovalent". That is, a single accounting value is attributed to a specific object or purpose. In contrast, risk and uncertainty are formally characterised by a whole range of possible values connected to an object.