COURSE INFORMATION Course Title: MANAGERIAL ACCOUNTING

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BUS 336	B	6	3	0	0	3	6

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Assoc.Prof.Dr. Alba Kruja akruja@epoka.edu.al , Wednesday 13:00-15:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Business Administration (3 years)
Classroom and Meeting Time:	E 314 Tuesday; 09:45-12:30
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	yes
Course Description:	Decision making implications of information provided by accounting theory; contemporary problems in reporting of financial statements; presentation format of financial statements as required by the ministry of Finance in Albania, analysis and interpretation of items appearing on the financial statements; methods of financial statement analysis; assigning a project for the analysis of the financial statements of a real Albania company.
Course Objectives:	Managerial Accounting is a sub-area of accounting concerned with information needed to effectively plan and control company operations and make good business decisions. Managerial accounting encompasses the whole organization, from developing strategy to day-to-day planning, marketing to sales, financing to operations. Each business-related discipline is involved: management, marketing, systems, economics, finance, and, of course, accounting. The course will be focused on profit planning, flexible budgets, capital budgeting, product pricing, performance measures and differential analysis

BASIC CONCEPTS OF THE COURSE

1	Managerial Accounting is a field of accounting that provides economic and financial information for managers and other internal users.
2	Target cost: Cost that provides the desired profit when the market determines a product’s price.
3	Transfer price - price used to record the transfer between two divisions of a company.
4	Time-and-material pricing is an approach to cost-plus pricing in which the company uses two pricing rates: One for labor used on a job - includes direct labor time and other employee costs. One for material - includes cost of direct parts and materials and a material loading charge for related overhead.
5	A budget is a quantitative plan for acquiring and using resources over a specified time period. Individuals sometimes create household budgets that balance their income and expenditures for food, clothing, housing, and so on while providing for some savings. Once the budget is established, actual spending is compared to the budget to make sure the plan is being followed.
6	A flexible budget is an estimate of what revenues and costs should have been, given the actual level of activity for the period. When a flexible budget is used in performance evaluation, actual costs are compared to what the costs should have been for the actual level of activity during the period rather than to the static planning budget. This is a very important distinction. If adjustments for the level of activity are not made, it is very difficult to interpret discrepancies between budgeted and actual costs.
7	A standard is a benchmark or “norm” for measuring performance. Standards are found everywhere. Your doctor evaluates your weight using standards for individuals of your age, height, and gender. The food we eat in restaurants is prepared using standardized recipes. The buildings we live in conform to standards set in building codes. Standards are also widely used in managerial accounting where they relate to the quantity and cost (or acquisition price) of inputs used in manufacturing goods or providing services.
8	Decentralized organizations need responsibility accounting systems that link lower-level managers’ decision-making authority with accountability for the outcomes of those decisions. The term responsibility center is used for any part of an organization whose manager has control over and is accountable for cost, profit, or investments. The three primary types of responsibility centers are cost centers, profit centers, and investment centers.2
9	An avoidable cost is a cost that can be eliminated in whole or in part by choosing one alternative over another.
10	A relevant cost is a cost that differs between alternatives. A relevant benefit is a benefit that differs between alternatives.

COURSE OUTLINE

Week	Topics
1	An Overview of Managerial Accounting Course - Prologue - Pp. 32-56 - Throughout this course you will study how management accounting functions within organizations. However, before embarking on the study of management accounting, you need to develop an appreciation for the larger business environment within which it operates. This topic is divided into nine sections: (1) globalization, (2) strategy, (3) organizational structure, (4) process management, (5) the importance of ethics in business, (6) corporate governance, (7) enterprise risk management, (8) corporate social responsibility, and (9) the Certified Management Accountant (CMA). Other business classes provide greater detail on many of these topics. Nonetheless, a broad discussion of these topics is useful for placing management accounting in its proper context.
2	Pricing Strategies for External Sales - Ch. 8 - Kiemmel & Kieso -Pp. 332-382 The price of a good or service is affected by many factors. Company must have a good understanding of market forces. Where products are not easily differentiated from competitor goods, prices are not set by the company, but rather by the laws of supply and demand – such companies are called price takers. Where products are unique or clearly distinguishable from competitor goods, prices are set by the company.
3	Pricing Strategies for Internal Sales - Ch. 8 - Kiemmel & Kieso -Pp. 332-381 - Transfer price - price used to record the transfer between two divisions of a company. Ways to determine a transfer price: Negotiated transfer prices. Cost-based transfer prices. Market-based transfer prices. Conceptually - a negotiated transfer price is best. Due to practical considerations, companies often use the other two methods.
4	Profit Planning - Ch. 7 - Pp. 306-358 - In this topic, we focus on the steps taken by businesses to achieve their planned levels of profits—a process called profit planning. Profit planning is accomplished by preparing a number of budgets that together form an integrated business plan known as the master budget. The master budget is an essential management tool that communicates management’s plans throughout the organization, allocates resources, and coordinates activities.
5	Preparing Master Budgets - Ch. 7 - Pp. 306-358 - In this topic, we focus on the steps taken by businesses to achieve their planned levels of profits—a process called profit planning. Profit planning is accomplished by preparing a number of budgets that together form an integrated business plan known as the master budget. The master budget is an essential management tool that communicates management’s plans throughout the organization, allocates resources, and coordinates activities.
6	Flexible Budgets and Performance Reports - Ch. 8 - Pp. 358 -395 - In the last topic we explored how budgets are developed before a period begins. Budgeting involves a lot of time and effort and the results of the budgeting process should not be shoved into a filing cabinet and forgotten. To be useful, budgets should provide guidance in conducting actual operations and should be part of the performance evaluation process. However, managers need to be very careful about how budgets are used. In government, budgets often establish how much will be spent and indeed, spending more than was budgeted may be a criminal offense. That is not true in other organizations. In for-profit organizations, actual spending will rarely be the same as the spending that was budgeted at the beginning of the period. The reason is that the actual level of activity (such as unit sales) will rarely be the same as the budgeted activity; therefore, many actual costs and revenues will naturally differ from what was budgeted. Should a manager be penalized for spending 10% more than budgeted for a variable cost like direct materials if unit sales are 10% higher than budgeted? Of course not. In this chapter we will explore how budgets can be adjusted so that meaningful comparisons to actual costs can be made.
7	Standard Costs - Ch.9 - 396- 451 - We encountered performance measures in the last chapter when we investigated flexible budget variances. These variances provide direct feedback concerning how well an organization performed in attaining its financial goals as expressed in the budget.Performance measurement can be helpful in an organization. It can provide feedback concerning what works and what does not work, and it can help motivate people to sustain their efforts.
8	Review Before Midterm Exam
9	Midterm Exam
10	Variance Analysis and Responsibility Accounting - Ch.9 - Pp. 396- 451 -LO1 Explain how direct materials standards and direct labor standards are set. LO2 Compute the direct materials price and quantity variances and explain their significance LO3 Compute the direct labor rate and efficiency variances and explain their significance LO4 Compute the variable manufacturing overhead rate and efficiency variances.
11	Decentralization and Investment Center Performance - Ch. 10 - Pp. 452-507 - In a decentralized organization, decision-making authority is spread throughout the organization rather than being confined to a few top executives. As noted above, out of necessity all large organizations are decentralized to some extent. Organizations do differ, however, in the extent to which they are decentralized. In strongly centralized organizations, decision-making authority is reluctantly delegated to lower-level managers who have little freedom to make decisions. In strongly decentralized organizations, even the lowest-level managers are empowered to make as many decisions as possible. Most organizations fall somewhere between these two extremes.
12	Relevant Costs for Decision Making - Ch. 11 - Pp.508-551 - Managers must decide what products to sell, whether to make or buy component parts, what prices to charge, what channels of distribution to use, whether to accept special orders at special prices, and so forth. Making such decisions is often a difficult task that is complicated by numerous alternatives and massive amounts of data, only some of which may be relevant. Every decision involves choosing from among at least two alternatives. In making a decision, the costs and benefits of one alternative must be compared to the costs and benefits of other alternatives.
13	Incremental Analysis - Ch. 11 - Pp.508- 551 - Costs that differ between alternatives are called relevant costs. Distinguishing between relevant and irrelevant costs and benefits is critical for two reasons. First, irrelevant data can be ignored—saving decision makers tremendous amounts of time and effort. Second, bad decisions can easily result from erroneously including irrelevant costs and benefits when analyzing alternatives. To be successful in decision making, managers must be able to tell the difference between relevant and irrelevant data and must be able to correctly use the relevant data in analyzing alternatives. The purpose of this chapter is to develop these skills by illustrating their use in a wide range of decision-making situations. These decision-making skills are as important in your personal life as they are to managers. After completing your study of this chapter, you should be able to think more clearly about decisions in many facets of your life.
14	Review Before Final Exam

Prerequisite(s):	NA
Textbook(s):	Brewer, Garrison, Noreen. Introduction to Managerial Accounting. 9th Edition. 2021. McGraw-Hill Irvin Weygandt, Kiemmel, Kieso, Managerial Accounting: Tools for Business Decision Making, 1st Edition, Global Edition, Wiley international edition, 2017
Additional Literature:	NA
Laboratory Work:	NA
Computer Usage:	NA
Others:	No

COURSE LEARNING OUTCOMES

1	Gain an introduction to accounting techniques used by internal management to aid in planning, directing, controlling, and decision-making activities.
2	Use accounting data to identify and analyze alternatives with the purpose of making managerial choices to maximize economic benefits to a firm.
3	Develop technical skills used in problem-solving and analysis, such as measuring production process costs, budgeting, performance reporting, and efficient allocation of a firm's resources.
4	Gain experience with computerized spreadsheets and other electronic tools used in business problem-solving, budgeting, and financial analysis.
5	Obtain a working background with accounting tools as a foundation for further study in management, accounting, and other business discipline.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Business Administration (3 years) Program
1	Identify activities, tasks, and skills in management, marketing, accounting, finance, and economics.	5
2	Apply key theories to practical problems within the global business context.	5
3	Demonstrate ethical, social, and legal responsibilities in organizations.	5
4	Develop an open minded-attitude through continuous learning and team-work.	5
5	Use technology to enable business growth and sustainability.	3
6	Analyze data to make effective decisions.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	35
Final Exam	1	50
Other	1	15
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	4	64
Mid-terms	12	1	12
Assignments			0
Final examination	17	1	17
Other	1	9	9
Total Work Load:			150
Total Work Load/25(h):			6
ECTS Credit of the Course:			6

CONCLUDING REMARKS BY THE COURSE LECTURER

https://epoka.edu.al/mat/codes/01-Code%20of%20Ethics.pdf