It includes an analysis of fixed and variable costs, product costs, relevant costs, investment decisions, and budgetary planning. There is coverage of variance analysis, transfer pricing, responsibility accounting, activity-based costing, and relation between compensation and departmental performance. The course is not open for credit to students who have majored or intend to major in accounting. Priority in registration will be given to students within the Entrepreneurship and Small Business Management subspecialization. Other non-accounting majors may register if space is available.
Coverage includes topics of measurement and revenue recognition.
The course provides a solid theoretical foundation for accounting and reporting. While earlier courses treat individual topics, this advanced accounting course is a more integrative course requiring the student to apply the principles mastered in previous courses and to do so in a more complex environment. Thus consolidations, which are a major part of the course, require that the student have a good understanding of asset valuation, inventory policies, depreciation policies, and bonds. The course also integrates the preparation of financial statements, the understanding of financial statements, and the management considerations in adopting different accounting policies. The course includes measures of liquidity, solvency, capital structure, return on investments, and operating performance.