Managerial Accounting Fundamentals

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Managerial Accounting Fundamentals

Instructor: Luann J. Lynch

82,962 already enrolled

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4 modules

Gain insight into a topic and learn the fundamentals.

848 reviews

Beginner level

Recommended experience

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

97%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

848 reviews

Beginner level

Recommended experience

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

97%

Most learners liked this course

What you'll learn

Different types of costs and how they are represented graphically
Cost-volume-profit analyses to answer questions around breaking even and generating profit
How to calculate and allocate overhead rates within both traditional and activity-based cost allocation systems
How to distinguish costs and benefits that are relevant from those that are irrelevant for a given management decision

Skills you'll gain

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Assessments

12 assignments¹

AI Graded see disclaimer

Taught in English

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There are 4 modules in this course

This course, developed at the Darden School of Business at the University of Virginia and taught by top-ranked faculty, will teach you the fundamentals of managerial accounting including how to navigate the financial and related information managers need to help them make decisions. You'll learn about cost behavior and cost allocation systems, how to conduct cost-volume-profit analysis, and how to determine if costs and benefits are relevant to your decisions.

By the end of this course, you will be able to: - Describe different types of costs and how they are represented graphically - Conduct cost-volume-profit analyses to answer questions around breaking even and generating profit - Calculate and allocate overhead rates within both traditional and activity-based cost allocation systems - Distinguish costs and benefits that are relevant from those that are irrelevant for a given management decision - Determine a reasonable course of action, given the financial impact, for a given management decision

Welcome to the course -- we're glad you're here! During this first week, we'll distinguish managerial from financial accounting, including the financial and related information managers need to help them make decisions. We'll then move on to cost behavior including different types of costs, their classifications, and how these classifications help with decision-making. From there, we'll show how to use a scatterplot and the high-low method to estimate cost functions. Let's get started!

What's included

16 videos2 readings3 assignments

16 videosTotal 71 minutes

Welcome and Course Overview1 minute
What Is Managerial Accounting?2 minutes
Three Sets of Books3 minutes
Financial Versus Managerial Accounting3 minutes
Different Costs for Different Purposes2 minutes
Different Costs in More Detail8 minutes
Cost Behavior4 minutes
Using a Line to Represent Cost Behavior2 minutes
Estimating Cost Functions Using Scatter Plots6 minutes
Your Turn: Estimating Cost Functions Using Scatter Plots Problem 15 minutes
Your Turn: Estimating Cost Functions Using Scatter Plots Problem 25 minutes
Estimating Cost Functions Using the High-Low Method6 minutes
Your Turn: Estimating Cost Functions Using the High-Low Method Problem 17 minutes
Your Turn: Estimating Cost Functions Using the High Low Method Problem 26 minutes
Important Caveats10 minutes
JW Sports Supplies Case Introduction2 minutes

2 readingsTotal 20 minutes

Course Overview10 minutes
Welcome to Honors!10 minutes

3 assignmentsTotal 90 minutes

Week 1 Graded Quiz30 minutes
Week 1 Honors Graded Quiz30 minutes
Week 1 Practice Quiz30 minutes

Now that we've learned the fundamentals of cost behavior, we're ready to move on to discussing the relationships between cost structure, volume, price, and profit. We'll then see why these relationships matter as we conduct cost-volume-profit analyses to answer questions around breaking even and generating profit.

What's included

15 videos4 assignments1 peer review

15 videosTotal 50 minutes

Week 2 Overview1 minute
What Is CVP Analysis?2 minutes
Functional Versus Contribution Margin Income Statements4 minutes
Breakeven Analysis5 minutes
Your Turn: Breakeven Analysis Company A3 minutes
Your Turn: Breakeven Analysis Company B2 minutes
Your Turn: Breakeven Analysis Company C2 minutes
Your Turn: Breakeven Analysis Company D3 minutes
Interested in Doing More than Breakeven?4 minutes
Your Turn: Doing More than Breakeven Company A3 minutes
Your Turn: Doing More than Breakeven Company B3 minutes
Your Turn: Doing More than Breakeven Company C3 minutes
Your Turn: Doing More than Breakeven Company D3 minutes
CVP Analysis with Multiple Products5 minutes
Your Turn: CVP Analysis with Multiple Products7 minutes

4 assignmentsTotal 120 minutes

Week 2 Graded Quiz30 minutes
Week 2 Honors Graded Quiz 130 minutes
Week 2 Honors Graded Quiz 230 minutes
Week 2 Practice Quiz30 minutes

1 peer reviewTotal 120 minutes

Preparing Functional and Contribution Margin Income Statements120 minutes

After learning how to conduct cost-volume-profit analyses, we're ready to discuss cost allocation and the different types of systems we can use: traditional and activity-based. From there, we'll learn how to calculate overhead rates and allocate overhead within both types of systems.

What's included

14 videos1 reading3 assignments

14 videosTotal 75 minutes

Week 3 Overview1 minute
The Flow of Costs5 minutes
The Flow of Costs in More Detail5 minutes
Cost Systems6 minutes
Allocating Overhead Costs6 minutes
Designing Cost Allocation Systems2 minutes
Your Turn: Allocating Overhead Costs Problem 15 minutes
Your Turn: Allocating Overhead Costs Problem 25 minutes
Traditional Cost Allocation Systems4 minutes
Activity-Based Costing12 minutes
Beyond Manufacturing Costs7 minutes
Your Turn: Activity-Based Costing Problem 19 minutes
Your Turn: Activity-Based Costing Problem 28 minutes
To Use Activity-Based Costing or Not?1 minute

1 readingTotal 10 minutes

JW Sports Supplies Case (Part B)10 minutes

3 assignmentsTotal 90 minutes

Week 3 Graded Quiz30 minutes
Week 3 Honors Graded Quiz30 minutes
Week 3 Practice Quiz30 minutes

In our final week, we'll discuss costs and benefits, and gain an understanding of those that are relevant for a given decision. We'll evaluate the financial impact of a given decision, then determine a reasonable course of action.

What's included

14 videos2 assignments

14 videosTotal 64 minutes

Week 4 Overview1 minute
Relevant Costs and Benefits3 minutes
Important Terms3 minutes
Relevant Costs in an Example4 minutes
Your Turn: Relevant Costs and Benefits4 minutes
Special Order Decision7 minutes
Your Turn: Special Order Decision4 minutes
Make or Buy Decision6 minutes
Your Turn: Make or Buy Decision5 minutes
Keep or Drop a Product Line Decision5 minutes
Your Turn: Keep or Drop a Product Line Decision4 minutes
Product Mix Decisions11 minutes
Your Turn: Product Mix Decisions4 minutes
Course Conclusion2 minutes

2 assignmentsTotal 60 minutes

Week 4 Graded Quiz30 minutes
Week 4 Practice Quiz30 minutes

Instructor

Instructor ratings

(251 ratings)

Luann J. Lynch

University of Virginia

2 Courses253,597 learners

Offered by

University of Virginia

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Reviewed on Sep 13, 2025

I learned the fundamentals of managerial accounting. The exercises helped in understanding the concepts. Professor Lynn is very good!

Reviewed on Aug 29, 2020

Teacher was excellent at taking her time and talking slowly and showing how to work problems. Nothing negative to say. I learned a lot.

Reviewed on Aug 12, 2020

Excellent course, very useful and applicable. Excellent teacher. Some writing errors in the quizzes and exercises, but for everything else, it was excellent. I learned a lot.

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