{"id":970,"date":"2018-07-03T14:46:45","date_gmt":"2018-07-03T14:46:45","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/chapter\/learning-outcomes\/"},"modified":"2024-04-29T17:41:46","modified_gmt":"2024-04-29T17:41:46","slug":"learning-outcomes","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/chapter\/learning-outcomes\/","title":{"raw":"Learning Outcomes","rendered":"Learning Outcomes"},"content":{"raw":"<img class=\"aligncenter wp-image-254\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2985\/2018\/07\/03144644\/outcomes.jpg\" alt=\"icon of a magnifying glass over a list\" width=\"200\" height=\"201\" \/>\r\n\r\nThe content, assignments, and assessments for Accounting for Managers are aligned to the following learning outcomes. A full list of course learning outcomes can be viewed here: <a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1W6FW50DSuzMJxLUAPZ9fClBN9jPzv2A0rCRhuMULbhM\/edit#gid=2055380769\" target=\"_blank\" rel=\"noopener\">Accounting For Managers<\/a>\r\n<h2>Module 1: <span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Whole Numbers, Fractions, Decimals, Percents and Problem Solving&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:31683,&quot;3&quot;:[null,0],&quot;4&quot;:[null,2,0],&quot;9&quot;:0,&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:[null,2,16777215],&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:9,&quot;17&quot;:1}\">Manipulate\u00a0numerical expressions involving fractions, decimals, and percents<\/span><\/h2>\r\n<h3>Make calculations with whole numbers of varying magnitude<\/h3>\r\n<ul>\r\n \t<li>Make calculations with whole numbers of varying magnitude<\/li>\r\n \t<li>Round whole numbers to a determined place value<\/li>\r\n \t<li>\r\n<div id=\"formula-bar\" class=\"formulabar-disabled\">\r\n<div id=\"t-formula-bar-input-container\">\r\n<div dir=\"ltr\">\r\n<div id=\"t-formula-bar-input\" spellcheck=\"false\" aria-hidden=\"true\">Use addition, substraction, multiplication, and division when evaluation whole number expressions<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div><\/li>\r\n<\/ul>\r\n<h3>Make calculations with proper fractions, improper fractions, and mixed numbers<\/h3>\r\n<ul>\r\n \t<li>Identify different types of fractions and convert between them<\/li>\r\n \t<li>Use addition and subtraction when evaluating with fractions<\/li>\r\n \t<li>Use multiplication and division when evaluating expressions with fractions<\/li>\r\n<\/ul>\r\n<h3>Make calculations with decimals of varying magnitude<\/h3>\r\n<ul>\r\n \t<li>Use place value to define all digits of a decimal number<\/li>\r\n \t<li>Use addition and subtraction when evaluating expressions with decimals<\/li>\r\n \t<li>Use multiplication and division when evaluating expressions with decimals<\/li>\r\n \t<li>Convert decimals to fractions and fractions to decimals<\/li>\r\n<\/ul>\r\n<h3>Make calculations using percents or finding percents<\/h3>\r\n<ul>\r\n \t<li>Use ratios to solve simple word problems<\/li>\r\n \t<li>Use percent to represent a given fraction or decimal<\/li>\r\n \t<li>Evaluate expressions and word problems involving percents<\/li>\r\n \t<li>Solve problems involving percent increase and decrease<\/li>\r\n<\/ul>\r\n<h2>Module 2: Apply math skills to solve problems with a variable of unknown value<\/h2>\r\n<h3>Solve single and multi-step equations for a given variable<\/h3>\r\n<ul>\r\n \t<li>Define and identify variables<\/li>\r\n \t<li>Use the addition, subtraction, multiplication, and division properties to solve single-step equations<\/li>\r\n \t<li>Solving multi-step equations with variables on both sides<\/li>\r\n<\/ul>\r\n<h3>Write and solve equations from word problems<\/h3>\r\n<ul>\r\n \t<li>Translating simple word phases into math notation<\/li>\r\n \t<li>Use a problem solving strategy to set up and solve word problems<\/li>\r\n<\/ul>\r\n<h3>Solve equations for word problems that contain fractions, decimals, and percents<\/h3>\r\n<ul>\r\n \t<li>Use mathematical questions to solve mark-up problems<\/li>\r\n \t<li>Use mathematical questions to solve discount problems<\/li>\r\n \t<li>Calculate simple and compound interest<\/li>\r\n \t<li>Solve any given formula for a specific variable<\/li>\r\n<\/ul>\r\n<h3>Use tables and graphs to visually represent numerical data<\/h3>\r\n<ul>\r\n \t<li>Graph points on a coordinate plane<\/li>\r\n \t<li>Recognize the trend of a graph<\/li>\r\n \t<li>Calculate the rate of change using data points and graphical presentation<\/li>\r\n \t<li>Compare and contrast graphical data to decipher information and make decisions<\/li>\r\n<\/ul>\r\n<h2>Module 3: Identify the Major Principles of Accounting<\/h2>\r\n<h3>Describe the place of finance and accounting within a business<\/h3>\r\n<ul>\r\n \t<li>Discuss the roles of finance and accounting in a business<\/li>\r\n \t<li>Summarize the background and sources of financial accounting standards<\/li>\r\n \t<li>Demonstrate how ethics applies to the field of accounting<\/li>\r\n<\/ul>\r\n<h3>Discuss the financial consequences of various organizational structures<\/h3>\r\n<ul>\r\n \t<li>Outline the variety of accounting roles internal and external to a business<\/li>\r\n \t<li>Differentiate between functional and divisional organization<\/li>\r\n \t<li>Describe the legal implications of a business' organization on its accounting<\/li>\r\n \t<li>Summarize the information provided in a corporation's annual report<\/li>\r\n<\/ul>\r\n<h3>Explore the fundamentals of accounting<\/h3>\r\n<ul>\r\n \t<li>Define the accounting entity and discuss the going concern concept<\/li>\r\n \t<li>Identify the major underlying accounting principles of consistency, full disclosure, materiality, verifiability and conservatism<\/li>\r\n \t<li>Explain the accounting concept<\/li>\r\n<\/ul>\r\n<h2>Module 4: Describe the different types of business organizations and the financial statements they rely on<\/h2>\r\n<h3>Examine the elements of common financial statements<\/h3>\r\n<ul>\r\n \t<li>Define transactions<\/li>\r\n \t<li>Solving the accounting equation<\/li>\r\n \t<li>Identify general categories of accounts<\/li>\r\n \t<li>Describe the double entry bookkeeping system<\/li>\r\n \t<li>Explain how key financial statements are structured<\/li>\r\n<\/ul>\r\n<h3>Discuss the bookkeeping process and the overall effects of transactions<\/h3>\r\n<ul>\r\n \t<li>Illustrate the expanded accounting equation<\/li>\r\n \t<li>Define common bookkeeping terms and phrases<\/li>\r\n \t<li>Construct bookkeeping journal entries based on given parameters<\/li>\r\n \t<li>Analyze the relationships between key financial statements<\/li>\r\n \t<li>Identify important information found on key financial statements<\/li>\r\n<\/ul>\r\n<h3>Analyze data from financial statements<\/h3>\r\n<ul>\r\n \t<li>Describe how inventories are reported on balance sheets and income statements<\/li>\r\n \t<li>Demonstrate how current assets are reported on the balance sheet<\/li>\r\n \t<li>Show how noncurent assets are reported on the balance sheet<\/li>\r\n \t<li>Describe the presentation of stockholder's equity on the balance sheet and statement of owners' equity<\/li>\r\n \t<li>Discuss how expenses are reported on the income statement<\/li>\r\n \t<li>Explain how expenses are reported on the income statement<\/li>\r\n<\/ul>\r\n<h3>Explore how other financial components are accounted for and presented<\/h3>\r\n<ul>\r\n \t<li>Compute core financial ratios that communicate essential information<\/li>\r\n \t<li>Calculate return on investment<\/li>\r\n \t<li>Calculating return on equity<\/li>\r\n \t<li>Analyze other key ratios to interpret financial statement data<\/li>\r\n \t<li>Discuss the limitations of financial statements<\/li>\r\n<\/ul>\r\n<h2>Module 5: Define managerial accounting, its key elements, and its role in a business<\/h2>\r\n<h3>Describe the difference between financial and managerial accounting<\/h3>\r\n<ul>\r\n \t<li>Compare and contrast financial and managerial accounting<\/li>\r\n \t<li>Explain the key components of managerial accounting<\/li>\r\n \t<li>Analyze the relationship between financial and managerial accounting and how they are\u00a0compartmentalized within modern businesses<\/li>\r\n<\/ul>\r\n<h3>Examine the various managerial accounting perspectives throughout an organization<\/h3>\r\n<ul>\r\n \t<li>Identify the roles\/people in a business who take on managerial accounting decisions<\/li>\r\n \t<li>Explain how accounting affects strategy development<\/li>\r\n \t<li>Explain how accounting is tied to risk management planning<\/li>\r\n \t<li>Explain how accounting decisions are influenced by both employee and leadership beliefs and needs<\/li>\r\n<\/ul>\r\n<h2>Module 6: Predict fixed, mixed, and variable cost behaviors<\/h2>\r\n<h3>Classify costs to better understand the business expenses<\/h3>\r\n<ul>\r\n \t<li>Differentiate between product costs and period costs<\/li>\r\n \t<li>Classify a variety of manufacturing costs<\/li>\r\n \t<li>Define and give examples of fixed and variable costs<\/li>\r\n \t<li>Describe the relevant range and its use in managerial accouning<\/li>\r\n<\/ul>\r\n<h3>Summarize the key elements of mixed cost analysis<\/h3>\r\n<ul>\r\n \t<li>Define and outline examples of mixed costs in retail and manufacturing businesses<\/li>\r\n \t<li>Define dependent variable and independent variable<\/li>\r\n \t<li>Analyze mixed costs using the high-low method<\/li>\r\n \t<li>Use the least-squares regression method to create a regression line on a graph of cost data<\/li>\r\n<\/ul>\r\n<h2>Module 7: Compare and contrast job costing, process costing, activity costing for tracking business costs<\/h2>\r\n<h3>Discuss the importance of cost management<\/h3>\r\n<ul>\r\n \t<li>Describe the relationship between cost management and managerial accounting relating to the value chain<\/li>\r\n \t<li>Differentiate between direct and indirect costs<\/li>\r\n<\/ul>\r\n<h3>Examine the job order cost accounting system<\/h3>\r\n<ul>\r\n \t<li>Describe a situation in which job order costing is used<\/li>\r\n \t<li>Calculate an overhead rate, manufacturing overhead, and unit costs<\/li>\r\n \t<li>Explain the flow of costs in a job order costing system<\/li>\r\n \t<li>Prepare a sample journal entry that records job order costs<\/li>\r\n<\/ul>\r\n<h3>Examine the process cost accounting system<\/h3>\r\n<ul>\r\n \t<li>Compare and contrast job order and process costing<\/li>\r\n \t<li>Explain the flow of costs in a process costing system<\/li>\r\n \t<li>Calculate equivalent units of production and costs per equivalent unit using the weighted average and FIFO method<\/li>\r\n \t<li>Prepare sample cost reconciliation journals for both the weighted average and FIFO methods<\/li>\r\n \t<li>Discuss how to allocate service costs as operations costs using the direct and step-down methods<\/li>\r\n<\/ul>\r\n<h3>Examine the benefits and limitations of both cost accounting methods<\/h3>\r\n<ul>\r\n \t<li>Describe situations in which activity-based absorption costing is used<\/li>\r\n \t<li>Illustrate the difference between tradition costing and activity-based absorption costing<\/li>\r\n<\/ul>\r\n<h2>Module 8: Use cost-volume-profit relationships to predict the effects of possible changes to those varriables<\/h2>\r\n<h3>Describe the key elements of cost-volume-profit analysis<\/h3>\r\n<ul>\r\n \t<li>List the factors associated with cost-volume-profit analysis<\/li>\r\n \t<li>Outline the contribution margin model<\/li>\r\n \t<li>Calculate net operating income using the profit equation<\/li>\r\n \t<li>Compute the contribution margin ratio<\/li>\r\n<\/ul>\r\n<h3>Illustrate the application of cost-volume-profit concepts<\/h3>\r\n<ul>\r\n \t<li>Explain why changes to key cost-volume-profit factors can significantly affect planning and decision making<\/li>\r\n \t<li>Prepare a statement that shows a charge in fixed cost and sales volume<\/li>\r\n \t<li>Prepare a statement that shows a charge in variable costs and sales volume<\/li>\r\n \t<li>Prepare a statement that shows a change in fixed cost, selling price and sales volume<\/li>\r\n \t<li>Prepare a statement that shows change in variable cost, fixed cost and sales volume<\/li>\r\n<\/ul>\r\n<h3>Examine various methods of break-even analysis<\/h3>\r\n<ul>\r\n \t<li>Define the break-even point<\/li>\r\n \t<li>Determine the break-even point using the equation method, the formula method, and in dollar sales and sales units<\/li>\r\n \t<li>Define target profit analysis and use it to make sales volume calculations<\/li>\r\n \t<li>Compute margin of safety<\/li>\r\n \t<li>Analyze the break-even point data for a company that wants to adjust its sales mix<\/li>\r\n<\/ul>\r\n<h3>Identify cost-volume-profit considerations for choosing a cost structure<\/h3>\r\n<ul>\r\n \t<li>Compare and contrast sample cost structures for company strengths and weakness<\/li>\r\n \t<li>Describe operating leverage and use it to evaluate sample cost structures<\/li>\r\n<\/ul>\r\n<h2>Module 9: Interpret all aspects of an operating budget<\/h2>\r\n<h3>Discuss the purpose of an master budget<\/h3>\r\n<ul>\r\n \t<li>Describe the advantages of budgeting to a business<\/li>\r\n \t<li>Define responsibility accounting<\/li>\r\n \t<li>Differentiate between alternative budget periods<\/li>\r\n \t<li>Identify the benefits of self-imposed and participatory budgeting<\/li>\r\n<\/ul>\r\n<h3>Illustrate the use of accounting data in a prepared master budget<\/h3>\r\n<ul>\r\n \t<li>Summarize the impact of the sales forecast on the master budget<\/li>\r\n \t<li>Outline the sequence of components of the master budget<\/li>\r\n \t<li>Create a production budget<\/li>\r\n \t<li>Create a direct materials budget<\/li>\r\n \t<li>Create a direct labor budget<\/li>\r\n \t<li>Create a manufacturing overhead budget<\/li>\r\n \t<li>Create an ending inventory budget<\/li>\r\n \t<li>Create a selling and administrative budget<\/li>\r\n \t<li>Create a cash budget<\/li>\r\n \t<li>Create a budgeted income statement<\/li>\r\n \t<li>Create a budgeted balance sheet<\/li>\r\n<\/ul>\r\n<h3>Outline the effects of flexible budgeting on budgetary control<\/h3>\r\n<ul>\r\n \t<li>Describe the shortcomings of a statistic budget<\/li>\r\n \t<li>Create a flexible budget report that shows sales, activity, labor, or cost variances<\/li>\r\n \t<li>Create a flexible budget report that shows multiple cost drivers<\/li>\r\n<\/ul>\r\n<h2>Module 10: Identify problems using cost variance analysis<\/h2>\r\n<h3>Discuss the basic principles of cost variance analysis<\/h3>\r\n<ul>\r\n \t<li>Identify the four steps of simple cost variance analysis<\/li>\r\n \t<li>Differentiate between favorable and unfavorable variances<\/li>\r\n \t<li>Determine if a variance is significant<\/li>\r\n<\/ul>\r\n<h3>Discuss different types of material variances<\/h3>\r\n<ul>\r\n \t<li>Analyze the variance between expected material cost and actual material costs<\/li>\r\n \t<li>Analyze the variance between standard unit price and actual price of materials purchased<\/li>\r\n \t<li>\u00a0Analyze the variance between expected amount of materials purchased and the actual amount of materials purchased<\/li>\r\n \t<li>Discuss strategies to limit and reduce material variances<\/li>\r\n<\/ul>\r\n<h3>Discuss different types of labor variances<\/h3>\r\n<ul>\r\n \t<li>Estimate expected labor costs<\/li>\r\n \t<li>Analyze the variance between expected labor cost and actual labor costs<\/li>\r\n \t<li>Discuss strategies to limit and reduce labor variances<\/li>\r\n<\/ul>\r\n<h3>Discuss the variable manufacturing overhead variances<\/h3>\r\n<ul>\r\n \t<li>Analyze the variance between expected variable manufacturing overhead cost and actual variable manufacturing overly costs<\/li>\r\n \t<li>Analyze the variance between expected variable manufacturing overhead efficiency and actual variable manufacturing overhead efficiency<\/li>\r\n \t<li>Discuss strategies to limit and reduce variable manufacturing overhead variances<\/li>\r\n<\/ul>\r\n<h2>Module 11: Determine relevant revenues and costs for both short and long-term decision making<\/h2>\r\n<h3>Explore cost types that affect decision making<\/h3>\r\n<ul>\r\n \t<li>Define differential cost<\/li>\r\n \t<li>Describe avoidable costs<\/li>\r\n \t<li>Recognize sunk costs<\/li>\r\n \t<li>Identify opportunity costs<\/li>\r\n \t<li>Summarize the concept of different costs analyzed for different purposes<\/li>\r\n<\/ul>\r\n<h3>Recognize relevant costs for common business decisions<\/h3>\r\n<ul>\r\n \t<li>Identify the data needed to support an add or drop decision<\/li>\r\n \t<li>Identify the data needed to support a make or buy decision<\/li>\r\n \t<li>Identify the data needed to support a special order decision<\/li>\r\n<\/ul>\r\n<h3>Determine the profitability of making changes to a constrained resource<\/h3>\r\n<ul>\r\n \t<li>Described a constrained resource in retail business<\/li>\r\n<\/ul>\r\n<h2>Module 12: Present a variety of managerial decisions based on differential analysis<\/h2>\r\n<h3>Discuss the process of managerial decision-making and the factors involved<\/h3>\r\n<ul>\r\n \t<li>Explain the process of differential analysis<\/li>\r\n \t<li>Analyze qualitative factors that can also affect managerial decisions<\/li>\r\n<\/ul>\r\n<h3>Analyze data to create reports and make business decisions<\/h3>\r\n<ul>\r\n \t<li>Create a report outlining the data to support a customer elimination decision<\/li>\r\n \t<li>Create a report outlining the data to support an add or drop decision<\/li>\r\n \t<li>Create a report outlining the data to support a make or buy decision<\/li>\r\n \t<li>Create a report outlining the data to support a sell or process further decision<\/li>\r\n \t<li>Create a report outlining the data to support a special order decision<\/li>\r\n \t<li>Create a report outlining the data to support a cost-plus pricing or target costing decision<\/li>\r\n<\/ul>\r\n<h2>Module 13: Analyze a statement of cash flows<\/h2>\r\n<h3>Discuss key financial principles needed to produce and analyze a statement of cashflows<\/h3>\r\n<ul>\r\n \t<li>Explain the nature of non-cash activities<\/li>\r\n \t<li>Identify cash flows that result from operating activities<\/li>\r\n \t<li>Identify cash flows that result from investing activites<\/li>\r\n \t<li>Identify cash flows that result from financing activities<\/li>\r\n<\/ul>\r\n<h3>Distinguish between the Direct and Indirect methods of preparing a statement of cash flow<\/h3>\r\n<ul>\r\n \t<li>Calculate cash flows from operating activities by the indirect method<\/li>\r\n \t<li>Calculate cash flows from operating activities by the direct method<\/li>\r\n<\/ul>\r\n<h3>Prepare a statement of cash flow and describe how it can be used to evaluate a business<\/h3>\r\n<ul>\r\n \t<li>Differentiate between net and gross cash flows<\/li>\r\n \t<li>Prepare a statement of cash flow using that indirect method<\/li>\r\n \t<li>Describe how cash flow factors can be used to improve or evaluate a business<\/li>\r\n<\/ul>\r\n<h2>Module 14:\u00a0Describe the financial and non-financial data that managers use to measure performance<\/h2>\r\n<h3>Identify common non-financial measures of performance and discuss their impact on an organization<\/h3>\r\n<ul>\r\n \t<li>Discuss non-financial components of the balanced scorecard<\/li>\r\n \t<li>Describe what a performance report is<\/li>\r\n<\/ul>\r\n<h3>Analyze an organization's financial performance<\/h3>\r\n<ul>\r\n \t<li>Perform a trend analysis on a financial statement<\/li>\r\n \t<li>Perform a common-size analysis on a financial statement<\/li>\r\n \t<li>Perform a ratio analysis on a financial statement<\/li>\r\n<\/ul>\r\n<h3>Evaluate an organization's performance using financial and non-financial data<\/h3>\r\n<ul>\r\n \t<li>Evaluate a for-profit organization's performance using financial and non-financial data<\/li>\r\n \t<li>Evaluate a non-profit organization's performance using financial and non-financial data<\/li>\r\n<\/ul>\r\n<h2>Module 15: Explain how capital budgeting is used in decision making<\/h2>\r\n<h3>Discuss capital budgeting<\/h3>\r\n<ul>\r\n \t<li>Discuss the steps in the capital budgeting process<\/li>\r\n \t<li>Identify situations that require capital budgeting decision making<\/li>\r\n \t<li>Discuss the time value of money<\/li>\r\n<\/ul>\r\n<h3>Differentiate between the different capital budget methods<\/h3>\r\n<ul>\r\n \t<li>Describe the pay-back method<\/li>\r\n \t<li>Describe the internal rate of return method<\/li>\r\n \t<li>Describe the net present value method<\/li>\r\n \t<li>Describe the simple rate of return method<\/li>\r\n<\/ul>\r\n<h3>Describe different ways to identify and measure potential risk of investments<\/h3>\r\n<ul>\r\n \t<li>Evaluate a party's risk aversion when proposing investment opportunities<\/li>\r\n<\/ul>\r\n<h3>Discuss different influences on making capital budgeting decisions<\/h3>\r\n<ul>\r\n \t<li>Analyze a possible replacement projects to determine if it should be implemented<\/li>\r\n \t<li>Conduct a postaudit on an example case to determine if the expected results were achieved<\/li>\r\n<\/ul>","rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-254\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2985\/2018\/07\/03144644\/outcomes.jpg\" alt=\"icon of a magnifying glass over a list\" width=\"200\" height=\"201\" \/><\/p>\n<p>The content, assignments, and assessments for Accounting for Managers are aligned to the following learning outcomes. A full list of course learning outcomes can be viewed here: <a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1W6FW50DSuzMJxLUAPZ9fClBN9jPzv2A0rCRhuMULbhM\/edit#gid=2055380769\" target=\"_blank\" rel=\"noopener\">Accounting For Managers<\/a><\/p>\n<h2>Module 1: <span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Whole Numbers, Fractions, Decimals, Percents and Problem Solving&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:31683,&quot;3&quot;:[null,0],&quot;4&quot;:[null,2,0],&quot;9&quot;:0,&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:[null,2,16777215],&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:9,&quot;17&quot;:1}\">Manipulate\u00a0numerical expressions involving fractions, decimals, and percents<\/span><\/h2>\n<h3>Make calculations with whole numbers of varying magnitude<\/h3>\n<ul>\n<li>Make calculations with whole numbers of varying magnitude<\/li>\n<li>Round whole numbers to a determined place value<\/li>\n<li>\n<div id=\"formula-bar\" class=\"formulabar-disabled\">\n<div id=\"t-formula-bar-input-container\">\n<div dir=\"ltr\">\n<div id=\"t-formula-bar-input\" spellcheck=\"false\" aria-hidden=\"true\">Use addition, substraction, multiplication, and division when evaluation whole number expressions<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<h3>Make calculations with proper fractions, improper fractions, and mixed numbers<\/h3>\n<ul>\n<li>Identify different types of fractions and convert between them<\/li>\n<li>Use addition and subtraction when evaluating with fractions<\/li>\n<li>Use multiplication and division when evaluating expressions with fractions<\/li>\n<\/ul>\n<h3>Make calculations with decimals of varying magnitude<\/h3>\n<ul>\n<li>Use place value to define all digits of a decimal number<\/li>\n<li>Use addition and subtraction when evaluating expressions with decimals<\/li>\n<li>Use multiplication and division when evaluating expressions with decimals<\/li>\n<li>Convert decimals to fractions and fractions to decimals<\/li>\n<\/ul>\n<h3>Make calculations using percents or finding percents<\/h3>\n<ul>\n<li>Use ratios to solve simple word problems<\/li>\n<li>Use percent to represent a given fraction or decimal<\/li>\n<li>Evaluate expressions and word problems involving percents<\/li>\n<li>Solve problems involving percent increase and decrease<\/li>\n<\/ul>\n<h2>Module 2: Apply math skills to solve problems with a variable of unknown value<\/h2>\n<h3>Solve single and multi-step equations for a given variable<\/h3>\n<ul>\n<li>Define and identify variables<\/li>\n<li>Use the addition, subtraction, multiplication, and division properties to solve single-step equations<\/li>\n<li>Solving multi-step equations with variables on both sides<\/li>\n<\/ul>\n<h3>Write and solve equations from word problems<\/h3>\n<ul>\n<li>Translating simple word phases into math notation<\/li>\n<li>Use a problem solving strategy to set up and solve word problems<\/li>\n<\/ul>\n<h3>Solve equations for word problems that contain fractions, decimals, and percents<\/h3>\n<ul>\n<li>Use mathematical questions to solve mark-up problems<\/li>\n<li>Use mathematical questions to solve discount problems<\/li>\n<li>Calculate simple and compound interest<\/li>\n<li>Solve any given formula for a specific variable<\/li>\n<\/ul>\n<h3>Use tables and graphs to visually represent numerical data<\/h3>\n<ul>\n<li>Graph points on a coordinate plane<\/li>\n<li>Recognize the trend of a graph<\/li>\n<li>Calculate the rate of change using data points and graphical presentation<\/li>\n<li>Compare and contrast graphical data to decipher information and make decisions<\/li>\n<\/ul>\n<h2>Module 3: Identify the Major Principles of Accounting<\/h2>\n<h3>Describe the place of finance and accounting within a business<\/h3>\n<ul>\n<li>Discuss the roles of finance and accounting in a business<\/li>\n<li>Summarize the background and sources of financial accounting standards<\/li>\n<li>Demonstrate how ethics applies to the field of accounting<\/li>\n<\/ul>\n<h3>Discuss the financial consequences of various organizational structures<\/h3>\n<ul>\n<li>Outline the variety of accounting roles internal and external to a business<\/li>\n<li>Differentiate between functional and divisional organization<\/li>\n<li>Describe the legal implications of a business&#8217; organization on its accounting<\/li>\n<li>Summarize the information provided in a corporation&#8217;s annual report<\/li>\n<\/ul>\n<h3>Explore the fundamentals of accounting<\/h3>\n<ul>\n<li>Define the accounting entity and discuss the going concern concept<\/li>\n<li>Identify the major underlying accounting principles of consistency, full disclosure, materiality, verifiability and conservatism<\/li>\n<li>Explain the accounting concept<\/li>\n<\/ul>\n<h2>Module 4: Describe the different types of business organizations and the financial statements they rely on<\/h2>\n<h3>Examine the elements of common financial statements<\/h3>\n<ul>\n<li>Define transactions<\/li>\n<li>Solving the accounting equation<\/li>\n<li>Identify general categories of accounts<\/li>\n<li>Describe the double entry bookkeeping system<\/li>\n<li>Explain how key financial statements are structured<\/li>\n<\/ul>\n<h3>Discuss the bookkeeping process and the overall effects of transactions<\/h3>\n<ul>\n<li>Illustrate the expanded accounting equation<\/li>\n<li>Define common bookkeeping terms and phrases<\/li>\n<li>Construct bookkeeping journal entries based on given parameters<\/li>\n<li>Analyze the relationships between key financial statements<\/li>\n<li>Identify important information found on key financial statements<\/li>\n<\/ul>\n<h3>Analyze data from financial statements<\/h3>\n<ul>\n<li>Describe how inventories are reported on balance sheets and income statements<\/li>\n<li>Demonstrate how current assets are reported on the balance sheet<\/li>\n<li>Show how noncurent assets are reported on the balance sheet<\/li>\n<li>Describe the presentation of stockholder&#8217;s equity on the balance sheet and statement of owners&#8217; equity<\/li>\n<li>Discuss how expenses are reported on the income statement<\/li>\n<li>Explain how expenses are reported on the income statement<\/li>\n<\/ul>\n<h3>Explore how other financial components are accounted for and presented<\/h3>\n<ul>\n<li>Compute core financial ratios that communicate essential information<\/li>\n<li>Calculate return on investment<\/li>\n<li>Calculating return on equity<\/li>\n<li>Analyze other key ratios to interpret financial statement data<\/li>\n<li>Discuss the limitations of financial statements<\/li>\n<\/ul>\n<h2>Module 5: Define managerial accounting, its key elements, and its role in a business<\/h2>\n<h3>Describe the difference between financial and managerial accounting<\/h3>\n<ul>\n<li>Compare and contrast financial and managerial accounting<\/li>\n<li>Explain the key components of managerial accounting<\/li>\n<li>Analyze the relationship between financial and managerial accounting and how they are\u00a0compartmentalized within modern businesses<\/li>\n<\/ul>\n<h3>Examine the various managerial accounting perspectives throughout an organization<\/h3>\n<ul>\n<li>Identify the roles\/people in a business who take on managerial accounting decisions<\/li>\n<li>Explain how accounting affects strategy development<\/li>\n<li>Explain how accounting is tied to risk management planning<\/li>\n<li>Explain how accounting decisions are influenced by both employee and leadership beliefs and needs<\/li>\n<\/ul>\n<h2>Module 6: Predict fixed, mixed, and variable cost behaviors<\/h2>\n<h3>Classify costs to better understand the business expenses<\/h3>\n<ul>\n<li>Differentiate between product costs and period costs<\/li>\n<li>Classify a variety of manufacturing costs<\/li>\n<li>Define and give examples of fixed and variable costs<\/li>\n<li>Describe the relevant range and its use in managerial accouning<\/li>\n<\/ul>\n<h3>Summarize the key elements of mixed cost analysis<\/h3>\n<ul>\n<li>Define and outline examples of mixed costs in retail and manufacturing businesses<\/li>\n<li>Define dependent variable and independent variable<\/li>\n<li>Analyze mixed costs using the high-low method<\/li>\n<li>Use the least-squares regression method to create a regression line on a graph of cost data<\/li>\n<\/ul>\n<h2>Module 7: Compare and contrast job costing, process costing, activity costing for tracking business costs<\/h2>\n<h3>Discuss the importance of cost management<\/h3>\n<ul>\n<li>Describe the relationship between cost management and managerial accounting relating to the value chain<\/li>\n<li>Differentiate between direct and indirect costs<\/li>\n<\/ul>\n<h3>Examine the job order cost accounting system<\/h3>\n<ul>\n<li>Describe a situation in which job order costing is used<\/li>\n<li>Calculate an overhead rate, manufacturing overhead, and unit costs<\/li>\n<li>Explain the flow of costs in a job order costing system<\/li>\n<li>Prepare a sample journal entry that records job order costs<\/li>\n<\/ul>\n<h3>Examine the process cost accounting system<\/h3>\n<ul>\n<li>Compare and contrast job order and process costing<\/li>\n<li>Explain the flow of costs in a process costing system<\/li>\n<li>Calculate equivalent units of production and costs per equivalent unit using the weighted average and FIFO method<\/li>\n<li>Prepare sample cost reconciliation journals for both the weighted average and FIFO methods<\/li>\n<li>Discuss how to allocate service costs as operations costs using the direct and step-down methods<\/li>\n<\/ul>\n<h3>Examine the benefits and limitations of both cost accounting methods<\/h3>\n<ul>\n<li>Describe situations in which activity-based absorption costing is used<\/li>\n<li>Illustrate the difference between tradition costing and activity-based absorption costing<\/li>\n<\/ul>\n<h2>Module 8: Use cost-volume-profit relationships to predict the effects of possible changes to those varriables<\/h2>\n<h3>Describe the key elements of cost-volume-profit analysis<\/h3>\n<ul>\n<li>List the factors associated with cost-volume-profit analysis<\/li>\n<li>Outline the contribution margin model<\/li>\n<li>Calculate net operating income using the profit equation<\/li>\n<li>Compute the contribution margin ratio<\/li>\n<\/ul>\n<h3>Illustrate the application of cost-volume-profit concepts<\/h3>\n<ul>\n<li>Explain why changes to key cost-volume-profit factors can significantly affect planning and decision making<\/li>\n<li>Prepare a statement that shows a charge in fixed cost and sales volume<\/li>\n<li>Prepare a statement that shows a charge in variable costs and sales volume<\/li>\n<li>Prepare a statement that shows a change in fixed cost, selling price and sales volume<\/li>\n<li>Prepare a statement that shows change in variable cost, fixed cost and sales volume<\/li>\n<\/ul>\n<h3>Examine various methods of break-even analysis<\/h3>\n<ul>\n<li>Define the break-even point<\/li>\n<li>Determine the break-even point using the equation method, the formula method, and in dollar sales and sales units<\/li>\n<li>Define target profit analysis and use it to make sales volume calculations<\/li>\n<li>Compute margin of safety<\/li>\n<li>Analyze the break-even point data for a company that wants to adjust its sales mix<\/li>\n<\/ul>\n<h3>Identify cost-volume-profit considerations for choosing a cost structure<\/h3>\n<ul>\n<li>Compare and contrast sample cost structures for company strengths and weakness<\/li>\n<li>Describe operating leverage and use it to evaluate sample cost structures<\/li>\n<\/ul>\n<h2>Module 9: Interpret all aspects of an operating budget<\/h2>\n<h3>Discuss the purpose of an master budget<\/h3>\n<ul>\n<li>Describe the advantages of budgeting to a business<\/li>\n<li>Define responsibility accounting<\/li>\n<li>Differentiate between alternative budget periods<\/li>\n<li>Identify the benefits of self-imposed and participatory budgeting<\/li>\n<\/ul>\n<h3>Illustrate the use of accounting data in a prepared master budget<\/h3>\n<ul>\n<li>Summarize the impact of the sales forecast on the master budget<\/li>\n<li>Outline the sequence of components of the master budget<\/li>\n<li>Create a production budget<\/li>\n<li>Create a direct materials budget<\/li>\n<li>Create a direct labor budget<\/li>\n<li>Create a manufacturing overhead budget<\/li>\n<li>Create an ending inventory budget<\/li>\n<li>Create a selling and administrative budget<\/li>\n<li>Create a cash budget<\/li>\n<li>Create a budgeted income statement<\/li>\n<li>Create a budgeted balance sheet<\/li>\n<\/ul>\n<h3>Outline the effects of flexible budgeting on budgetary control<\/h3>\n<ul>\n<li>Describe the shortcomings of a statistic budget<\/li>\n<li>Create a flexible budget report that shows sales, activity, labor, or cost variances<\/li>\n<li>Create a flexible budget report that shows multiple cost drivers<\/li>\n<\/ul>\n<h2>Module 10: Identify problems using cost variance analysis<\/h2>\n<h3>Discuss the basic principles of cost variance analysis<\/h3>\n<ul>\n<li>Identify the four steps of simple cost variance analysis<\/li>\n<li>Differentiate between favorable and unfavorable variances<\/li>\n<li>Determine if a variance is significant<\/li>\n<\/ul>\n<h3>Discuss different types of material variances<\/h3>\n<ul>\n<li>Analyze the variance between expected material cost and actual material costs<\/li>\n<li>Analyze the variance between standard unit price and actual price of materials purchased<\/li>\n<li>\u00a0Analyze the variance between expected amount of materials purchased and the actual amount of materials purchased<\/li>\n<li>Discuss strategies to limit and reduce material variances<\/li>\n<\/ul>\n<h3>Discuss different types of labor variances<\/h3>\n<ul>\n<li>Estimate expected labor costs<\/li>\n<li>Analyze the variance between expected labor cost and actual labor costs<\/li>\n<li>Discuss strategies to limit and reduce labor variances<\/li>\n<\/ul>\n<h3>Discuss the variable manufacturing overhead variances<\/h3>\n<ul>\n<li>Analyze the variance between expected variable manufacturing overhead cost and actual variable manufacturing overly costs<\/li>\n<li>Analyze the variance between expected variable manufacturing overhead efficiency and actual variable manufacturing overhead efficiency<\/li>\n<li>Discuss strategies to limit and reduce variable manufacturing overhead variances<\/li>\n<\/ul>\n<h2>Module 11: Determine relevant revenues and costs for both short and long-term decision making<\/h2>\n<h3>Explore cost types that affect decision making<\/h3>\n<ul>\n<li>Define differential cost<\/li>\n<li>Describe avoidable costs<\/li>\n<li>Recognize sunk costs<\/li>\n<li>Identify opportunity costs<\/li>\n<li>Summarize the concept of different costs analyzed for different purposes<\/li>\n<\/ul>\n<h3>Recognize relevant costs for common business decisions<\/h3>\n<ul>\n<li>Identify the data needed to support an add or drop decision<\/li>\n<li>Identify the data needed to support a make or buy decision<\/li>\n<li>Identify the data needed to support a special order decision<\/li>\n<\/ul>\n<h3>Determine the profitability of making changes to a constrained resource<\/h3>\n<ul>\n<li>Described a constrained resource in retail business<\/li>\n<\/ul>\n<h2>Module 12: Present a variety of managerial decisions based on differential analysis<\/h2>\n<h3>Discuss the process of managerial decision-making and the factors involved<\/h3>\n<ul>\n<li>Explain the process of differential analysis<\/li>\n<li>Analyze qualitative factors that can also affect managerial decisions<\/li>\n<\/ul>\n<h3>Analyze data to create reports and make business decisions<\/h3>\n<ul>\n<li>Create a report outlining the data to support a customer elimination decision<\/li>\n<li>Create a report outlining the data to support an add or drop decision<\/li>\n<li>Create a report outlining the data to support a make or buy decision<\/li>\n<li>Create a report outlining the data to support a sell or process further decision<\/li>\n<li>Create a report outlining the data to support a special order decision<\/li>\n<li>Create a report outlining the data to support a cost-plus pricing or target costing decision<\/li>\n<\/ul>\n<h2>Module 13: Analyze a statement of cash flows<\/h2>\n<h3>Discuss key financial principles needed to produce and analyze a statement of cashflows<\/h3>\n<ul>\n<li>Explain the nature of non-cash activities<\/li>\n<li>Identify cash flows that result from operating activities<\/li>\n<li>Identify cash flows that result from investing activites<\/li>\n<li>Identify cash flows that result from financing activities<\/li>\n<\/ul>\n<h3>Distinguish between the Direct and Indirect methods of preparing a statement of cash flow<\/h3>\n<ul>\n<li>Calculate cash flows from operating activities by the indirect method<\/li>\n<li>Calculate cash flows from operating activities by the direct method<\/li>\n<\/ul>\n<h3>Prepare a statement of cash flow and describe how it can be used to evaluate a business<\/h3>\n<ul>\n<li>Differentiate between net and gross cash flows<\/li>\n<li>Prepare a statement of cash flow using that indirect method<\/li>\n<li>Describe how cash flow factors can be used to improve or evaluate a business<\/li>\n<\/ul>\n<h2>Module 14:\u00a0Describe the financial and non-financial data that managers use to measure performance<\/h2>\n<h3>Identify common non-financial measures of performance and discuss their impact on an organization<\/h3>\n<ul>\n<li>Discuss non-financial components of the balanced scorecard<\/li>\n<li>Describe what a performance report is<\/li>\n<\/ul>\n<h3>Analyze an organization&#8217;s financial performance<\/h3>\n<ul>\n<li>Perform a trend analysis on a financial statement<\/li>\n<li>Perform a common-size analysis on a financial statement<\/li>\n<li>Perform a ratio analysis on a financial statement<\/li>\n<\/ul>\n<h3>Evaluate an organization&#8217;s performance using financial and non-financial data<\/h3>\n<ul>\n<li>Evaluate a for-profit organization&#8217;s performance using financial and non-financial data<\/li>\n<li>Evaluate a non-profit organization&#8217;s performance using financial and non-financial data<\/li>\n<\/ul>\n<h2>Module 15: Explain how capital budgeting is used in decision making<\/h2>\n<h3>Discuss capital budgeting<\/h3>\n<ul>\n<li>Discuss the steps in the capital budgeting process<\/li>\n<li>Identify situations that require capital budgeting decision making<\/li>\n<li>Discuss the time value of money<\/li>\n<\/ul>\n<h3>Differentiate between the different capital budget methods<\/h3>\n<ul>\n<li>Describe the pay-back method<\/li>\n<li>Describe the internal rate of return method<\/li>\n<li>Describe the net present value method<\/li>\n<li>Describe the simple rate of return method<\/li>\n<\/ul>\n<h3>Describe different ways to identify and measure potential risk of investments<\/h3>\n<ul>\n<li>Evaluate a party&#8217;s risk aversion when proposing investment opportunities<\/li>\n<\/ul>\n<h3>Discuss different influences on making capital budgeting decisions<\/h3>\n<ul>\n<li>Analyze a possible replacement projects to determine if it should be implemented<\/li>\n<li>Conduct a postaudit on an example case to determine if the expected results were achieved<\/li>\n<\/ul>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-970\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Learning Outcomes. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Magnify. <strong>Authored by<\/strong>: Eucalyp. <strong>Provided by<\/strong>: Noun Project. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/thenounproject.com\/term\/magnify\/1276779\/\">https:\/\/thenounproject.com\/term\/magnify\/1276779\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":17533,"menu_order":3,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Magnify\",\"author\":\"Eucalyp\",\"organization\":\"Noun Project\",\"url\":\"https:\/\/thenounproject.com\/term\/magnify\/1276779\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Learning Outcomes\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-970","chapter","type-chapter","status-publish","hentry"],"part":965,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/users\/17533"}],"version-history":[{"count":17,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/970\/revisions"}],"predecessor-version":[{"id":3440,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/970\/revisions\/3440"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/parts\/965"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/970\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/media?parent=970"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapter-type?post=970"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/contributor?post=970"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/license?post=970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}