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ACN202-Lesson Plan
ACN202-Lesson Plan
Explain the focus of the course on the accounting function internal to organizations.
Lesson plan # 02
Sub-titles The work of the management and need for managerial accounting
Explain managerial accounting, which provides some data for financial statements
prepared for external users, has as its primary purpose the development and
presentation of information useful to internal management for decision making,
planning and control.
Key words Managerial accounting, Planning, Controlling, Decision making, Budget, Business
process, Enterprise risk management, Lean production, Performance report,
Segment, Strategy, Value chain.
New words Planning, Controlling, Decision making, Budget, Business process, Enterprise risk
management, Lean production, Performance report, Segment, Strategy, Value chain.
Lesson plan # 03
Brief 1 Users,
contents 2 Time focus,
3 Verifiability Vs. relevance,
4 Precision Vs. timeliness,
5 Requirements,
6 Rules,
7 Subject matter.
Key words Financial accounting, Managerial accounting, Users, Time focus, Verifiability,
Relevance, Timeliness, Precision.
Lesson plan # 04
New words Ethics, Integrity, Institute of Management Accountants (IMA), Code of conduct.
Lesson plan # 05
1) Identify and give examples of each of the three basic manufacturing cost
categories,
2) Understand cost classifications used to prepare financial statements: product
cost and period costs.
Key words Manufacturing costs, Direct materials, Direct labor, Manufacturing overhead, Non-
manufacturing costs, Product costs, Period costs.
New words Manufacturing costs, Direct materials, Direct labor, Manufacturing overhead, Non-
manufacturing costs, Product costs, Period costs.
Lesson plan # 06
Key words Cost object, Direct cost, Indirect cost, Prime cost, Conversion cost.
New words Cost object, Direct cost, Indirect cost, Prime cost, Conversion cost.
Lesson plan # 07
Key words Variable cost, Fixed cost, Common fixed costs, Discretionary fixed costs, Linear
cost behavior, Relevant range, Differential cost, Differential revenue, Opportunity
cost, Sunk cost.
New words Common fixed costs, Discretionary fixed costs, Linear cost behavior, Relevant
range, The high low method, Differential cost, Differential revenue, Opportunity
cost, Sunk cost.
Lesson plan # 08
The analysis of mixed costs and the contribution format of income statement
Key words Mixed cost, The high low method, Contribution format income statement,
New words Mixed cost, The high low method, Contribution format income statement,
Lesson plan # 09
1) Explain how changes in activity affect contribution margin and net operating
income.
2) Prepare and interpret a cost-volume-profit (CVP) graph and a profit graph
3) Use the CM ratio to compute changes in contribution margin and net
operating income resulting from change in sales volume.
4) Show the effects on net operating income of change in variable costs, fixed
costs, selling price, and volume.
5) Determine the level of sales needed to achieve a desired target profit.
6) Compute the degree of operating leverage at a particular level of sales and
explain how it can be used to predict change in net operating income.
Key words Cost-Volume-Profit (CVP) , CM ratio, CVP graph, Degree of operating leverage,
Incremental analysis, Target profit analysis, Variable expense ratio.
New words Cost-Volume-Profit (CVP) , CM ratio, CVP graph, Degree of operating leverage,
Incremental analysis, Target profit analysis, Variable expense ratio.
Probable 1. Prepare contribution format income statement under different sales volume.
Questions 2. Compute CM ratio and use the CM ratio to estimate the changes in net
operating income.
3. Compute the effect of the changes in variable cost, fixed cost, selling price
and volume on net operating income.
4. Compute the level of sales required to attain a target profit using equation or
formula method.
5. Compute and use the degree of operating leverage.
Lesson plan # 10
Lesson plan # 11
Aim Describe the two costing method for product cost calculation.
1) Explain how variable costing differs from absorption costing and compute
unit product costs under each method.
Lesson plan # 12
Aim Understand the effect of changes in product on net operating income under variable
and absorption costing.
Key words Contribution format income statement, traditional format income statement,
Reconciliation report.
Lesson plan # 13
Lesson plan # 14
Key words Managerial accounting, Cost concept, CVP relationships, Absorption costing,
Variable costing
Lesson plan # 15
Lesson plan # 16
Key words Master budget, Sales budget, Production budget, Merchandise purchase budget.
Lesson plan # 17
Key words Direct material budget, Direct labor budget, Manufacturing overhead budget,
Finished goods inventory budget, Selling and administrative budget.
New words Direct material budget, Direct labor budget, Manufacturing overhead budget,
Finished goods inventory budget, Selling and administrative budget.
Lesson plan # 18
Key words Cash budget, Budgeted income statement, Budgeted balance sheet.
New words Cash budget, Budgeted income statement, Budgeted balance sheet.
Lesson plan # 19
Aim Understanding the importance of setting standard cost and usage of the general
model for standard cost.
1) Understand the standard cost for quantity and price set for direct materials
2) Explain the standard hour and efficiency for direct labors
3) Describe the standard set for variable overhead.
Key words Standard cost, Direct material standard, Direct labor standard, Variable
manufacturing overhead standard.
Probable 1. How to set standard costs for material quantity and price, labor hour and
Questions efficiency, and variable overhead rate and efficiency.
Lesson plan # 20
Direct Labor
Aim Explain the usage of standard cost for material, labor and variable overhead to
analyze variances.
Key words Material price variance, Material quantity variance, Labor rate variance, Labor
efficiency variance, variable overhead rate variance, variable overhead efficiency
variance.
Lesson plan # 21
Aim Describe the establishment of flexible budget and calculating the variance.
Key words Activity variance, Flexible budget, Planning budget, Revenue variance, Spending
variance, Performance report.
New words Activity variance, Flexible budget, Planning budget, Revenue variance, Spending
variance, Performance report.
Lesson plan # 22
Aim Explain different cost concepts relevant to make effective management decision.
Key words Avoidable cost, Differential cot, Differential revenue, Joint costs, opportunity cost,
Relevant benefit, Relevant cost, Sunk cost.
New words Avoidable cost, Differential cot, Differential revenue, Joint costs, Relevant benefit,
Relevant cost.
Lesson plan # 23
Aim Understand how to make decisions about adding or dropping product lines, and other
segments.
Key words Avoidable costs, Differential cot, Differential revenue, Relevant benefit, Relevant
cost.
Lesson plan # 24
Special order
Key words Avoidable cost, Bottleneck, Constraint, Differential cot, Differential revenue, Joint
costs, Make or buy decision, opportunity cost, Relaxing the constraint, Relevant
benefit, Relevant cost, Sell or process further, Special order, Split-off point, Sunk
cost.
New words Joint costs, Make or buy decision, Relaxing the constraint, Relevant benefit,
Relevant cost, Sell or process further, Special order, Split-off point.
Lesson plan # 25
Title Revision
1) Understand and demonstrate all the contents and problems listed for final
examination.
Key words Master budgeting, Flexible budgets, Performance Analysis, Standard costs,
Variances, Differential analysis.
Lesson plan # 26
Aim Final Examination: Assess knowledge of students and their ability to demonstrate
and solve problems on master budgeting, flexible budgets and performance analysis,
standard costs and variances, and differential analysis.
Objectives Final Examination: Assess knowledge of students and their ability to demonstrate
and solve problems on master budgeting, flexible budgets and performance analysis,
standard costs and variances, and differential analysis.
Key words Master budgeting, Flexible budgets, Performance Analysis, Standard costs,
Variances, Differential analysis.
Probable Final Question Paper based on the chapters 8, 9, 10, and 12.
Questions