This study investigated the effect of student prior knowledge and feedback type on student achievement and satisfaction in an introductory managerial accounting course using computer-based formative assessment tools. The study involved a redesign of the existing Job Order Costing unit using the ADDIE model of instructional design. The instructional strategy of feedback was designed into existing assignments and new formative assessments. Assignments and feedback were delivered using an online computer-based tool. Three feedback type conditions, (a) knowledge of response (KOR), (b) knowledge of correct response (KCR), and (c) elaborative, were analyzed with two prior knowledge levels, (a) high and (b) low, to form six experimental conditions. Prior knowledge was determined using a pretest given at the beginning of the study. Students were assigned to the two prior knowledge groups using a median split. Students were then randomly assigned to one of the three feedback type conditions, forming the six groups. Achievement was measured using a unit exam. Student satisfaction was measured using a survey at the end of the unit. The results of the study indicated student achievement was not statistically affected by feedback type or an interaction of feedback type and prior knowledge. However, the study did confirm achievement was affected by prior knowledge level. The results also showed a statistically significant main effect for feedback type on student satisfaction. Students were statistically more satisfied when receiving elaborative feedback than when receiving KOR feedback regardless of prior knowledge level. Additionally, an interaction effect of prior knowledge and feedback type on student satisfaction was found to be statistically significant. Students with high prior knowledge receiving elaborative feedback were significantly more satisfied than students with low prior knowledge receiving KOR feedback. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]