Managerial Accounting: BIZ211 (1125-3)

Spring 2016

School of Business- Ajou University

Professor: T.B. Lukas (Major: Accounting)

Class time and location: Tuesday and Friday 12:00 ~ 13:15 (12:00 -1:15 PM), Dasan Hall #105

What is Managerial Accounting?

Management accounting or managerial accounting is the process of identifying, analyzing, recording and presenting financial information that is used internally by the management for planning, decision making and control. Managerial accounting is concerned with providing helpful information and reports to internal users such as managers and entrepreneurs etc. so that they can control and plan the business activities. Few of the main areas, in which managerial accounting is used are:

 Planning and Budgeting: Managers use managerial accounting techniques to plan what to sell, how much to sell, what price is to be charged to reimburse the costs of production and also earn an optimal profit. Also they have to plan how to finance the operations and how to manage cash etc. This is very important to keep the business operations working smoothly.

 Decision Making: When managers have to decide whether or not to start a particular project, they need managerial accounting information to estimate the benefits of various opportunities and decide which one to choose.

 Measurement of Performance: Managers have to compare the actual results of operations to budgeted figures to evaluate the performance of the business. They use managerial accounting techniques such as standard costing to evaluate the performance of specific departments. They then make necessary adjustments in those departments which are not performing well.

Course objective

This course is designed to help students examine alternative ways for informed decision-making, i.e. identifying the tools and methods managers use to make the best-informed decisions possible. It discusses the various methods and theories that managers deploy when tracking costs and profits. It helps students to develop an understanding of terms, concepts, and mechanics of cost accounting, and to develop capabilities to use internal accounting data in managers' decision making and performance evaluation.

Cost measurement and estimation, cost management, cost-volume-profit analysis, short term decision making, budget and variance analysis and performance evaluation are among the interesting topics included in this course. In general, upon completion of this course, you will be better prepared to make informed decisions within a firm.

Class information

Official language of the class is English but no language proficiency is required. The course may also help you improve your language skill hence students are motivated to participate and discuss with each other in the class.

For more information, contact Ms. Park, Hyeji at 031-219-2702 (school of business)