EMGT 6600 - Applied Accounting and Finance for Engineering Management

• List and differentiate between cost categories used in engineering activities such as manufacturing, and compute overhead rate, total cost and average cost per unit.
• Explain differences between activity-based costing and conventional costing, and compute activity rates and product costs using activity based costing.
• Record the flow of material, labor and overhead through a process costing system, compute parameters such as cost per unit, and prepare a cost reconciliation report.
• Explain the interrelationships between cost, volume and profit, and calculate related parameters such as break-even point, margin of safety and degree of operating leverage.
• Describe the differences between variable costing and absorption costing methods.
• Prepare budgets for production, direct labor, manufacturing and cash accounts, and prepare a budgeted income statement and balance sheet.
• Differentiate between a flexible budget and other budget types, and demonstrate how to read and interpret a report showing revenue and spending variances.
• Calculate and describe the significance of key performance measures including return on investment, residual income, and manufacturing cycle efficiency, and display them in a balanced scorecard.
• Demonstrate the use of differential analysis techniques, including time value of money measures, to support decisions such as make-or-buy, continuing or closing a product line, and making capital investments.
• Prepare and interpret financial statements and statements of cash flows, and compute common financial ratios for activities such as asset management, debt management and profitability assessment.