CABM Module 600 Syllabus




CABM Module 600 – Accounting

600.1   Accounting Strategies
600.1.1   Understand the accounting concepts and principles
600.1.2   Understand the accounting equation
600.1.3   Learn how to account for business transactions
600.1.4   Become familiar with the financial statements along with their relationships

600.2   The Accounting Process
600.2.1   Understand the accounting cycle
600.2.2   Learn how to complete the accounting cycle

600.3   Assets, Liabilities, and Equity
600.3.1   Learn how to classify assets and liabilities as current or long-term on the balance sheet
600.3.2   Learn how a bank account acts as a control device
600.3.3   Understand the importance of accounts receivable on the balance sheet
600.3.4   Learn the special terms used for notes receivable
600.3.5   Discuss and compare cost flows for the three inventory methods such as FIFO, LIFO, and average cost
600.3.6   Understand the valuation and ethical issues in inventory
600.3.7   Know how to measure the cost of a plant asset
600.3.8   Know how to account for depreciation of plant assets
600.3.9   Know how to account for natural resources
600.3.10   Know how to account for intangible assets
600.3.11    Know how to account for current liabilities of known amounts
600.3.12   Know how to account for current liabilities of unknown amounts
600.3.13   Understand the nature of log-term liabilities such as bonds, including their types, prices, present value, and interest rates
600.3.14   Learn how to report liabilities on the balance sheet
600.3.15   Understand components of a stockholders’ equity section of a balance sheet, including classes of stock
600.3.16   Learn how to record the issuance of stock
600.3.17    Understand retained earnings, stock dividends, and stock splits
600.3.18   Know how to account for treasury stock
600.3.19   Understand the advantages and disadvantages of issuing bonds versus stocks
600.3.20  Identify restrictions placed on the retained earnings account
600.3.21   Analyze a corporate income statement

600.4   Analysis of Financial Statements
600.4.1   Perform a horizontal and vertical analysis of financial statements and learn how to use common-size financial statements through benchmarking
600.4.2   Compute the standard financial ratios and know how to use them to make decisions
600.4.3   Identify the purposes of the statement of cash flows and distinguish among operating, investing, and financing cash flows

600.5   Cost Behavior, Control, and Profit Planning
600.5.1   Understand the cost behavior and identify how changes in volume affect costs
600.5.2   Use cost-volume-profit (CVP) analysis to compute breakeven points
600.5.3   Use CVP analysis for profit planning, graph the CVP relations, perform sensitivity analysis, and calculate the breakeven point for multiple product lines or services
600.5.4   Understand the differences between absorption costing method and variable costing method, and learn how to apply them

600.6   Product and Service Costs
600.6.1   Distinguish between job order costing system and process costing system; and know how to record material and labor costs using a job order costing system for manufacturing products
600.6.2   Know how to record overhead costs using a job order costing system to allocate manufacturing overhead; know how to record completion and sale of finished goods and know how to adjust manufacturing overhead; and calculate unit costs for a service company using job order costing system
600.6.3   Understand how the flow of costs differ between the job order costing system and the process costing system and understand the building blocks of a process costing system

600.7   Operating Budgets and Responsibility Accounting
600.7.1   Learn how to use a budget with its benefits, including the major components of the master budget
600.7.2   Learn how to prepare an operating budget
600.7.3   Learn how to prepare a financial budget
600.7.4   Understand the concept of responsibility accounting
600.7.5   Learn how to prepare a flexible budget for the income statement
600.7.6   Identify the benefits of standard costs and learn how to set standards
600.7.7   Analyze manufacturing overhead in a standard cost system
600.7.8   Develop activity-based costs (ABC) for a company
600.7.9   Learn how to use activity-based management (ABM) system to achieve target costs
600.7.10   Describe a just-in-time (JIT) production system and JIT costing system

600.8   Decision-Making and Accounting
600.8.1   Learn how to make short-term special-purpose decisions with relevant information
600.8.2   Differentiate between short-term and long-term special-purpose decisions

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