MBA 6002 – Managerial Accounting: Course Overview

MBA 6002 – Managerial Accounting is a critical course in the Master of Business Administration (MBA) program at Walden University. This course focuses on the principles and applications of managerial accounting in the context of financial decision-making. Unlike financial accounting, which is aimed at external reporting, managerial accounting is geared towards providing information for internal management decisions. Students will explore how to use accounting data to assess a company’s financial health, plan for the future, control operations, and drive business strategies.

MBA 6002 prepares students to make informed financial decisions using accounting information, helping them evaluate performance, manage budgets, and ultimately drive business success. The course emphasizes the practical use of accounting tools in management and how these tools influence both short-term and long-term business strategies.

Course Overview of MBA 6002 – Managerial Accounting

This course is designed to provide a strong foundation in managerial accounting and its relevance to decision-making and business strategy. Key topics covered include cost behavior, budgeting, variance analysis, cost-volume-profit analysis, and financial forecasting. Students will learn how to use accounting information for strategic planning, financial control, and performance measurement in both large and small organizations. The course also explores ethical considerations in financial reporting and decision-making.

Key Learning Outcomes and Focus Areas

Understanding Managerial Accounting Principles
- Students will gain a deep understanding of managerial accounting as a tool for internal decision-making. This includes understanding the role of cost accounting, budgeting, and financial reporting in the management process.
- The course will cover the distinction between financial accounting (used for external reporting) and managerial accounting (used for internal decision-making), emphasizing its role in business strategy and operations management.
Cost Behavior and Costing Methods
- Students will learn how to classify and analyze costs, such as fixed costs, variable costs, and mixed costs. The course covers how costs behave at different levels of business activity and how to apply costing methods (e.g., job order costing, process costing) to allocate resources effectively.
- The course introduces activity-based costing (ABC), a more detailed method of cost allocation, helping students understand how to assign overhead costs more accurately to products and services.
Budgeting and Forecasting for Business Operations
- Budgeting is a critical area in managerial accounting. Students will learn how to prepare operating budgets, cash flow budgets, and capital budgets.
- Students will also explore financial forecasting, using historical data and market trends to predict future revenue, expenses, and profitability.
Cost-Volume-Profit (CVP) Analysis
- The course explores CVP analysis to assess how costs, volume, and profit interrelate. Students will learn to calculate the break-even point and use CVP analysis to make decisions about pricing, production levels, and product profitability.
- The course emphasizes how CVP analysis can be applied to evaluate business scenarios, assess investment decisions, and optimize resource allocation.
Performance Measurement and Variance Analysis
- Students will explore techniques for evaluating the performance of an organization through variance analysis. This involves comparing actual financial performance against budgeted or expected performance and analyzing the reasons for discrepancies (i.e., favorable vs. unfavorable variances).
- The course covers various performance metrics, including return on investment (ROI), economic value added (EVA), and residual income, and how these can be used to evaluate financial outcomes and support business decision-making.
Ethical Considerations in Managerial Accounting
- An important aspect of the course is understanding the ethical considerations in accounting practices, including financial reporting, conflict of interest, and the importance of accurate data for decision-making.
- The course also emphasizes the role of managerial accountants in ensuring transparency and integrity in financial management and corporate governance.