SIB500 - Managerial Accounting

Outline information
Schools offering this subject
Last revision date 2017-11-07 13:18:23.037
Last review date 2017-12-04 00:15:03.928

Subject Title
Managerial Accounting

Subject Description
The central focus of this subject is the preparation and use of accounting information to facilitate the decision making necessary to plan, direct and control the operations of a particular enterprise. The course utilizes the SAP enterprise system to provide students with practical hands-on experience using integrated business technology to enhance managerial effectiveness and achieve strategic objectives. The subject is delivered in the context appropriate for non-accounting students.

Credit Status
One credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Describe the various types of costs, their behaviour, operating leverage, and demonstrate the use of contribution margin analysis.
  2. Demonstrate the use of cost/volume/profit analysis when considering a variety a business decision alternatives.
  3. Identify and use activity cost centres and related cost drivers in an activity-based cost system.
  4. Discuss the objectives and procedures of the budgetary process and prepare various budgetary reports with special emphasis upon cash flow.
  5. Distinguish between flexible and static budgets and their effect upon performance evaluation, and accountability.
  6. Identify the characteristics of relevant information and perform analyses relating to special business decisions.
  7. Describe and demonstrate the use of Responsibility Accounting, decentralization, and the differences in cost, profit and investment centres.
  8. Demonstrate the ability to use SAP ERP system to present and analyze financial information.
  1. Distinguish between fixed and variable cost behaviour, prepare income statements utilizing the contribution margin approach, calculate operating leverage, interpret relevant range in relation to decisions.
  2. Calculate break-even points and targets under a variety of strategic decision-making situations.
  3. Comprehend how automation has affected the selection of cost drivers; identify activity-based cost drivers and the four hierarchical categories; distinguish among manufacturing costs, upstream costs, and downstream costs.
  4. Identify the benefits of budgeting, the primary components of a master budget, prepare various budgets including detailed cast flow budget and supporting supplementary schedules.
  5. Apply comprehension relating to a variety of variances and their analysis between actual and budget when either static or flexible budgets are utilized, indicate how variances might be interpreted as an evaluation of performance.
  6. Utilize the unique concepts relating to relevant information when considering a special decision involving quantitative and qualitative characteristics such as those pertaining to special discounted orders, outsourcing versus in-house manufacture, segment elimination, asset replacements, sunk costs, and opportunity costs.
  7. Describe the concept of decentralization and the differences among cost, profit and investment centres. Evaluate investment opportunities using the return on investment and the residual income techniques.
  8. Use SAP ERP system to analyze financial reports and perform various functions in FI/CO.

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Execute mathematical operations accurately.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Take responsibility for one's own actions, decisions, and consequences.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.