Course: Managerial Accounting

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Course title Managerial Accounting
Course code FIU/NANMU
Organizational form of instruction Lecture + Seminary
Level of course Master
Year of study not specified
Semester Winter
Number of ECTS credits 5
Language of instruction English
Status of course Compulsory
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Lecturer(s)
  • LAZAR Jaromír, doc. Dr. Ing.
  • ŠELIGOVÁ Markéta, Ing.
Course content
Managerial Accounting The differences between managerial and financial accounting are explained as well as the management accountant in the organization and managerial accounting in the management process. Strategic management skills, enterprise risk management skills, process management skills, leadership skills, measurement skills, the importance of ethnics in business and corporate social responsibility are examined to properly understand principles of managerial accounting. Cost Concepts and Process Costing Cost concepts and process costing are described through general cost classifications, product costs, period costs, cost classifications for predicting cost behavior, the analysis of mixed costs, direct cost and indirect cost. Job order costing, comparison of job order costing and process costing, cash flow in process costing, operating costing and equivalent units of production are explained in detail focusing on the principles of managerial accounting. Calculation System Calculation system is based on understanding the basics of cost-volume-profit analysis, target profit and break-even analysis, variable and absorption costing, advantages of variable costing with absorption costing income, nonmanufacturing costs and activity-based costing, manufacturing costs and activity-based costing, cost pools, allocation bases, the mechanics of activity-based costing and targeting process improvements. Budgets and Performance Analysis Budgets and performance analysis is described through the basic framework of budgeting, preparing the master budget, flexible budgets, flexible budgets with multiple cost drivers, using standard costs-direct materials variances and direct labor variances including the materials quantity variance, the materials price variance, labor efficiency variance and labor rate variance, general model for standard cost variance analysis and international uses of standard costs. Performance Measurement Performance measurement is examined to properly understand decentralization in organizations, responsibility accounting, evaluation investment center performance including return on investment, residual income, operating performance measures, balanced scored. Differential analysis includes cost concepts for decision making, opportunity cost, special orders, utilization of a constrained resource and join product costs and the contribution approach. Financial statement analysis Financial statement analysis includes limitations of financial statement analysis, statements in comparative and common-size form, ratio analysis and target costing. Mentioned is also statement of cash flows and capital budgeting. Capital budgeting is described through planning investments and discounted cash flows including the net present value method, the internal rate of return method and expanding the net present value method.

Learning activities and teaching methods
Lecture with presentation in Power-point
  • unspecified - 13 hours per semester
  • unspecified - 30 hours per semester
  • unspecified - 47 hours per semester
  • unspecified - 26 hours per semester
Recommended literature
  • GARRISON, R. H., NOREEN, E. W. and C. P. BREWER. Managerial Accounting. New York: McGwaw-Hill, 2011. ISBN 978-0-07-811100-6.
  • HEISINGER, K. Essentials of Managerial Accounting. USA: South-Western Cengage Learning, 2009. ISBN 978-0-618-9.
  • JIAMBALVO, J. Managerial Accounting. 4th ed. John Wiley & Sons, Inc., 2009. ISBN 978-0-470-33334-1.
  • PROCTOR, R. Managerial Accounting for Businesses Decisions. 3rd ed. England: Pearson Education Limited, 2009. ISBN 978-0-273-71755-3.
  • RICH, J.S., JONES, J.P., HEITGER, D.L., MOWEN, M.M and D. R. HANSEN. Cornerstones of Financial & Managerial Accounting. USA: South-Western Cengage Learning, 2012. ISBN 978-0-538-47348-4.
  • WARREN, C.S., REEVE, J.M. and J.E. DUCHAC. Managerial Accounting. USA: Cengage Lending, 2014. ISBN 978-1-285-86880-6.


Study plans that include the course