Managerial Accounting – Tool Kit or Hardware Department?

• In Event: Session A: Effective Learning Strategies - Poster Session

Abstract

DESCRIPTION. The multitude of tools (rules, formulas, techniques, ratios, formats, etc.) presented to managerial accounting students, can be, and probably should be, reduced and simplified. Instead of an entire hardware department, let’s equip students with a well-stocked tool kit, help them to critically employ the tools they have, and teach them to creatively substitute one tool for another when needed.
The goal of managerial accounting is to prepare students to make the types of decisions managers face in day-to-day operations. In the real world, the type or amount of information managers desire may not always be available because it is either too difficult or too costly to collect. Consequently, managers must become creative in using available information in different and unique ways to achieve the goal of optimizing decision-making.
In managerial accounting, the tendency has been to present a plethora of tools and rules to the point students leaving the classroom often feel weighed down. Focusing on process costing, both the weighted average and FIFO methods, this presentation looks at how to slim down that weight by helping students make better decisions as they critically and creatively employ the fewer tools they carry.

MARKETING DESCRIPTION. Can the number of tools and rules needed by managerial students be reduced from a hardware store to a toolkit? With critical thinking and a little creativity, can less actually be more in decision-making? Look at process costing and see.

Author

• Sheila D. Foster, The Citadel