Course description
From financial statements to operating performance, the environment we are living in is “data rich, information poor.” With the decision-making pressure on accountants and managers, it is crucial to gather available data quickly, provide accurate analysis, and present financial information to stakeholders in a meaningful way.
This course covers the basic concepts and techniques of management accounting and combines it with current trends in data analytics as they pertain to management accounting. Topics include: critical thinking, financial modelling, cost behaviour, relevance for decision-making, and budgeting. Students will learn how to analyze both financial and operational data by designing financial models and dashboards, making reasonable financial forecasts, and monitor operational performance using data analytics tools.
Course content
1. Introduction to critical thinking
2. Introduction to managerial accounting
- Management information and decisions
- Cost behaviour (fixed vs. variable vs. mixed)
- Introduction to cost systems (e.g., work-in-process vs. raw materials vs. finished goods, contribution margin, breakeven analysis)
3. Introduction to ratio analysis and data visualization (utilizing PowerBI or similar data visualization tool)
- Evaluate existing data
- Create visualization/dashboard for key ratios/to cater to different users of the financial statements
- Define and calculate key ratios for a business owner
- Design charts and graphs for different users of the financial statements
- Present dashboard
4. Interpretation and analysis of pre-generated reports (e.g., developed through generative artificial intelligence tools) on a company’s financial health and assess its accuracy.
5. Forecasting, budgeting, and financial modelling
- Why do we budget?
- Introduction to the master budget
- Critical areas of focus for a budget
- Limitations and challenges with budgeting
- Design and create an interactive financial model using an appropriate data analytics tool
- Design the layout of the model clearly and logically
- Create clearly defined inputs and assumption sections
- Build powerful scenarios
- Incorporate all related schedules
6. Flexible budgets and standards for control, operational dashboards
- Use data visualizations to assess results and company performance compared to budget.
- Define and calculate Key Performance Indicators (KPI)
- Design charts and graphs for KPIs
7. Relevant information and decision-making
- Evaluative criteria for decision-making, including quantitative and qualitative considerations (e.g. make vs. buy, sell or process further, keep or drop a business segment).
Learning activities
Lecture and/or seminar
All methods of instruction apply to in class, hybrid and/or online modes of learning.
Means of assessment
Assessment will be based on course objectives and will be carried out in accordance with the Douglas College Evaluation Policy. An evaluation schedule is presented at the beginning of the course. This is a graded course.
Group Project(s):
- A minimum of one group data analytics 30%
Individual Activities:
- In-class activities, homework assignments, and data analytics projects 30%
- Final Exam 40%
Students must write all examinations in order to obtain credit for the course.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
Learning outcomes
Upon successful completion of the course, the student will be able to:
- Apply appropriate techniques to prepare both static and flexible budgets
- Explain the concepts, techniques, and merits of various management control systems used in both domestic and international operations
- Apply various cost allocation concepts and techniques to a variety of cost settings
- Analyze financial statements using data analytics
- Use information from automated data capture to form and analyze financial statements
- Access, examine, and integrate different data files
- Analyze data patterns, identify discrepancies, and extract unusual items
- Examine financial data for existence of misrepresentations in areas such as matched or unmatched records, duplication, and limit violation
- Create, interpret, and analyze dashboards
- Apply the data analytics process to communicate insights and track outcomes
Textbook materials
Textbooks and Materials to be Purchased by Students
Horngren, Charles T., Sundem, Garry L., Statton, William O., Teall, Howard, D.
Management Accounting, latest Canadian ed. Toronto: Prentice Hall Canada.