Management Accounting Fundamentals [MA1]

Introduction to Management Accounting

Fundamentals
Course purpose

Management Accounting Fundamentals [MA1] is the first of two mandatory courses in the management
accounting stream in the CGA program of professional studies. The course presents an introduction to the
main concepts and practices of management accounting.

The purpose of management accounting is to provide managers of all types of organizations with the
information they need to conduct the affairs of those organizations. Management accounting is a major
information source for short-term and long-term operational planning, as well as for financial accounting.

Computer spreadsheets have been integrated into the course.

Course prerequisites

The prerequisite for this course is Financial Accounting Fundamentals [FA1] or its equivalent. You will find
a course description of FA1 in the CGA-Canada Syllabus on the CGA-Canada website
(www.cga.org/canada).

It is assumed that you have a sound understanding of basic mathematics and its application in the business
context; the expected level of knowledge is that which can be gained from any standard business
mathematics text. If you need to upgrade or refresh your skills in basic mathematics, you are strongly
recommended to consult the CGA Mathematics Reference Handbook by Brian Killip (Toronto: HBJ-Holt
Canada, 1993).

An understanding of the principles of ethics and how ethical issues are addressed in the profession of
accounting is an essential part of the CGA program of professional studies. A set of ethics readings has been
developed as a study resource in this area and is provided as part of your program materials. In MA1 you are
expected to be familiar with Section A of the Ethics Reading Handbook [ERH]. This section clarifies
important concepts and terms used throughout the handbook and is necessary background knowledge for
ERH readings referenced in this and other courses.

Software skills

When working with MA1, you are expected to have acquired basic competence with the following software:

Microsoft Windows (If you need to build your Windows skills, refer to the CT1 tutorial.)

Microsoft Excel (If you need to build your Excel skills, refer to the CT2 tutorial.)

Microsoft Word

e-mail software

QuickTime (provided for working with multimedia objects in the course material)

web browser

Adobe Acrobat Reader

For more information on these programs, refer to the How To tab.

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Course materials

The required textbook, reference materials for this course are:

Garrison, Noreen, Chesley, and Carroll, Managerial Accounting, Sixth Canadian Edition (Toronto,
Ontario: McGraw-Hill Ryerson Limited, 2004)

Ethics Readings Handbook [ERH], Third Edition (Vancouver, BC: CGA-Canada, 2005) (available
electronically under the Resources tab)

You are encouraged to read the following enrichment items that appear throughout the textbook: "Business
Focus," "Focus on Current Practice," and "Management Accounting in Action" (see the first chapter of the
textbook for examples of these helpful articles). (Note: These articles are not examinable.)

To maximize retention, read and study the "Review Problems" at the end of each chapter of the textbook.
These problems reinforce the main concepts of the chapter. (Note: These problems are not examinable.)

Practice tools

In MA1, you are encouraged to make use of the "Self-test" questions, accessible on the navigation pane
following the module topics. These questions give you instant feedback to help you prepare for the final
examination.

Course assessments

The assessments in this course consist of the following:

Five quizzes, one each in Modules 2, 4, 6, 8, and 10: These are in the form of multiple-choice
questions that you complete online and submit for marking. For instructions on accessing and
submitting quizzes, see "Submit assignments and quizzes" under the How To tab.

A mid-term assignment due in week 8: You prepare your assignment response in Word and submit it
to your marker using an electronic drop box. For instructions on accessing and submitting your mid-
term assignment, see "Submit assignments and quizzes" under the How To tab.

Course examination: As with other foundation level CGA courses, the final examination is three hours
long.

Your final course mark will be the combined quiz mark and examination mark (30 for the quiz mark and 70
for the examination). Your final examination will be graded out of 100, and your raw examination mark will
be scaled into a mark out of 70. Your quiz mark (with a maximum score of 30) will then be added to the
scaled examination mark.

Several resources are available to help you prepare for the final examination:

a practice examination, which shows you the general form of the final examination, including the types
of questions you can expect

examination reviews, in the form of recorded lectures, available approximately two weeks before the
course examination

an examination blueprint, which outlines the primary content areas covered on the examination, the
related learning objectives, the proportion of marks assigned, and the weighting for different types of

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questions

To access these resources, click “Preparing for the final examination” in the course navigation pane.

Online Learning Centre (OLC)

This edition has an Online Learning Centre that provides chapter summaries, multiple-choice questions,
practice exams, and other resources that are designed as review aids. These are not required materials for
MA1, but you may find them helpful. The online resources and a guide to the OLC can be accessed through
the "Using the OLC" link in the course navigation pane.

Previous CICA Handbook releases

Several changes in content, terminology, and classification were introduced in previous releases of the CICA
Handbook. The changes have been incorporated throughout the MA1 module notes and the Model Financial
Statements. However, some of the former terminology is still retained in the text. For example,
"depreciation" is still used in the text, but in these module notes and the Review questions and Assignments,
the term "amortization" is used throughout. For purposes of study and examination, you may choose to use
either terminology, as long as you use it consistently within the same question.

Features of each module

In addition to learning objectives, required reading, and levels of competence, which are described in "Use
this course" under the How To tab, modules may contain multimedia learning objects and activities.

Multimedia learning objects

Multimedia learning objects are used to explain certain concepts or present ideas. They are indicated by the
mouse icon. Some objects are provided onscreen within the topic, while others can be viewed by clicking the
activity title.

Recommended study approach

Here is a recommended study approach for each module. You can develop variations on it to suit your own
learning style.

Check the Course Schedule for each module's assignment requirements. (Click Course schedule in the
navigation pane.)

Read the online module material and preview the activities.

Read the assigned pages from the text and make your own notes.

Do each of the activities and make notes.

Complete the assignments.

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