5100- ACCT Managerial Accounting
Spring 2011
Course Outline
Instructor
Office
Phone
E-mail
Office
Hours
Dr. Santhosh Ramalingegowda
220 Brooks Hall
706-542-3612
[e-mail]
Mon: 4.00pm - 5.15 p.m.
Wed: 10.15am - 11.30 a.m.
and by appointment
TA
Office
Greg Yakrus
220 Brooks Hall
E-mail
[e-mail]
This class will use eLC as our main form of communication. You are responsible for checking
the eLC website regularly as we will use it for announcements, assignments, grade status, etc.
Please do not email me via eLC as I will not check that e-mail. You may email me at
[e-mail] (please state ACCT 5100 in the subject line).
COURSE DESCRIPTION
The design of accounting systems to serve the internal needs of management with an emphasis
on underlying theory. Product costing, including activity-based costing; budgeting and other
planning applications, information for decision making, planning and control application for
decentralized organizations.
COURSE PREREQUISITES
For ACCT 5100 participants, course prerequisites include ACCT 2102 or ACCT 2102H.
Knowledge from ACCT 5000 will also be beneficial. ACCT 5100/7100 assumes that you
understand basic financial accounting covered in the introductory financial accounting courses.
Class participants must understand the financial statements, debits and credits, business terms,
and other fundamental financial accounting concepts, such as revenue and expense recognition.
For ACCT 7100, the prerequisite is ACCT 6000 or ACCT 6015.
COURSE OBJECTIVES
Substantive Knowledge
After completing this course, you will be able to:
1) Prepare and interpret management accounting information for both operational and strategic
decision making.
a) We will start by learning how to determine the costs and profitability of different
products, services, and customers. Specifically, you will learn to determine the cost of
completing a service or production job, including how to allocate indirect costs to
various jobs or client engagements. You will learn how to use that cost information
along with other cost and revenue data to prepare cost-volume profit analyses,
including breakeven points.
b) You will also learn to make informed strategic and operational business decisions
based on the management accounting information you have prepared. For example,
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you will learn to identify relevant revenues and costs for special short-term decisions,
such as accepting or rejecting one-time only special orders.
c) We will end with a segment on using cost information to plan business operations.
For example, you will learn to evaluate the performance of different responsibility
centers and their managers, using techniques such as variance analysis.
2) Anticipate how management accounting information affects employees incentives and
behavior.
3) Decide when and where a particular management accounting tool is likely to be useful. This
is important, because unlike financial accounting, there are no generally accepted
management accounting principles. Each company uses different reports and analyses, and
most companies use some subset of the tools in this course.
Specific Skill Development
This course will also help you develop skills required by PricewaterhouseCoopers' statement
Educating for the Public Trust and by the new format of the CPA exam. You will:
1) Develop critical thinking and analytical skills necessary to tackle unstructured problems.
2) Develop skills in expressing your ideas and opinions.
3) Develop your ability to work with others as part of an effective team.
4) Develop your ability to concentrate and work effectively in a busy office environment.
REQUIRED TEXT
Cost Accounting: A Managerial Emphasis by Charles Horngren, Srikant Datar, George Foster,
Madhav Rajan, and Christopher Ittner (13th edition).
Horngren/Datar/Foster/Rajan/Ittner is the most widely used cost accounting text. Most of the
book is very well-written, although it tends to emphasize mechanics (i.e., how to do the
numerical calculations). After studying (not just reading) the text, you should be well-equipped
to do the computations necessary in the assignments. However, there is much more to managerial
accounting than number-crunching. We will spend a good deal of class time discussing concepts
and issues.
OTHER STUDY AIDS
Check answers for all problems in assigned chapters of the text are on eLC.
The required text has problems for self-study (with answers, of course!) at the end of each
chapter. Work through these before attempting the practice problems.
If you are having trouble with a topic, go to the main library reserve desk, get the reserve list for
ACCT 5100, and check out the Horngren, Harrison, Bamber Accounting text for a more
elementary discussion that will help you get the basics.
A student study guide (to the required text) is available at the bookstore. This guide includes a
chapter outline and some objective and problem-type questions (with answers) to help you
understand the basics. I recommend this study guide for anyone who has found ACCT 2102 or
ACCT 5000 challenging.
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Your conscientious study of the text and class notes and your conscientious effort to complete
the assigned problems on a timely basis are the best resources for learning the material.
PERFORMANCE EVALUATION
Exams:
There are two evening midterm exams and a comprehensive final exam on the dates noted on
the course schedule. The final exam is given during the time scheduled by the University,
without exceptions. All three exams are closed-book. Course objectives include developing your
ability to concentrate and work effectively in busy office atmospheres, so all students will sit for
quizzes and exams in the assigned room(s). See the additional policies section of this document
for other exam policies.
To ensure your personal safety when departing evening activities on campus, click on
http://www.ps.uga.edu/escortservice.html to see how you can call the University of Georgia
escort service to escort you to your car or dorm.
Quizzes:
There will be unannounced quizzes from time to time. This is to reward class participants for
keeping up-to-date with material being covered in class. Quiz questions will generally be easier
than exam questions. There will be no make-up quizzes, and a missed quiz receives a zero.
However, your lowest quiz score will be dropped. Quizzes are equally weighted toward the final
grade.
You are responsible for all materials (text, in-class problems, and team work) assigned. Just
because we don't go over it in class doesn't mean it's not important. I will try to spend class time
clarifying more subtle or potentially confusing points.
Assignments:
For most class participants, the only way to succeed in this course is to complete (or at least
attempt) the readings and written assignments regularly and on time. I cannot overemphasize the
importance of completing the daily written assignments before class. The challenging part of
most assignments is deciding how to set up the analysis. Class participants who do not make a
conscientious effort to complete the written assignments before class lose the opportunity to
develop this essential analytical skill.
Assignments are due at the beginning of the class for which they are assigned. Late assignments
are not accepted. Assignments are equally weighted toward the final grade.
Each assignment is graded as follows:
2 - neat, generally complete
1 - neat, shows effort but serious conceptual errors, or otherwise incomplete.
0 - illegible or shows no serious effort.
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The course syllabus is a general plan for the course. Deviations announced to the class by the
instructor may be necessary. For this reason, check the eLC course announcement page before
beginning assignments.
Rationale for Quiz and Daily Written Assignment Policies:
Some (but not all) of the assignments cover material before we have discussed the topic in class.
Also, part of each quiz may be from material that is assigned for that day but not yet covered in
class. When quiz items include material that has been assigned but that we have not yet covered
in class, the questions are at a more basic level. There are several purposes for this policy:
1) To reward class participants for keeping up-to-date with the advance reading assignments.
2) To give class participants an early warning of what they dont understand, and where they
need to devote more attention.
3) To encourage class participants to learn on their own as much of the basics as possible,
because:
A) Education research shows that people retain more of what they learn or discover on their
own (than they do of what they hear), and
B) As the PWC statement on Educating for the Public Trust explains, the rapid rate of
change in the accounting and business worlds means that professionals have a
continuous responsibility to learn (on their own and from peers) about these changes
and their effects.
C) The more you learn on your own, the more of our limited class time we can spend
considering more subtle issues and potential pitfalls.
Retaining more of the information is important to your success as a professional. As PWC
explains, learning to learn on your own is critical for your development into a competent
professional. Upper division courses are a step between the spoon-feeding that often occurs in
lower division courses, and the responsibility to learn complex material when you become a
professional (when you not only have to learn on your own, but you must first decide what to
learn!). The daily written assignment and quiz policies reward you for developing these essential
skills.
Requests for Re-Grading:
My TA and I make every effort to grade accurately and consistently across class participants.
Historically, there have been very few errors in grading. In the rare case where you believe we
have made an outright error in the grading (as distinct from a difference of opinion the
number about of points deducted or a judgment call), you may provide a written request for a review
within seven calendar days of the date the graded assignment/quiz/exam was returned to the
class, explaining:
a. the grading mistake (e.g., you put answer A; that was the correct answer; but we
marked it incorrect).
b. a failure to understand your clearly documented logic (e.g., we didn't see your
supporting calculations on the next page, although you told us your work was
continued there).
After seven calendar days, all grades will be final.
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Participation and Professionalism:
Participation and Professionalism: Active class participation means responding to questions
posed in class, offering relevant comments and observations to issues raised in class, or asking
insightful questions. Professionalism includes attending class on time and treating others (the
professor, teaching assistants, classmates, and department staff) with respect.
Class participants will form 4-person teams. Team members should sit near each other in class.
Team members will also complete team projects listed on the syllabus. At the end of the
semester, each team member will evaluate the other members of the team, and this peer
evaluation is part of your class participation grade.
Grades:
Your performance determines your course grade as follows:
Exam 1
Exam 2
Final Exam (comprehensive)
Quizzes
Assignments
Class Participation and Professionalism
28%
28%
28%
08%
04.5%
03.5%
The following rules will be applied to the total percentage earned in the class to determine your
course grade:
93% receives at least an A
90% receives at least an A 87% receives at least a B+
83% receives at least a B
80% receives at least a B 77% receives at least a C+
73% receives at least a C
70% receives at least a C 60% receives at least a D
< 60% receives at least an F
WITHDRAWAL POLICY
Participants who withdraw before the first midterm receive a W. Class participants who
withdraw after the first midterm but before the University W date will receive a W if and only
if their score on the first midterm is 50% or above. Class participants will receive a WF if their
score on the first midterm is less than 50%, or if they withdraw after the University "W" date. A
WF is included in your academic average. Thus, if you are not well-prepared for the midterm,
you should drop before the first midterm exam.
ACADEMIC HONESTY POLICY
All academic work submitted in this course must be your own unless you have received my
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permission to collaborate and have properly acknowledged receiving assistance. In particular,
quizzes and exams are to be the sole work of the individual class participant. Of course, team
members should work together in completing the team projects.
As a University of Georgia student, you have agreed to abide by the Universitys academic
honesty policy, A Culture of Honesty, and the Student Honor Code. All academic work must
meet the standards described in A Culture of Honesty found at: www.uga.edu/honesty. Lack of
knowledge of the academic policy is not a reasonable explanation for a violation. Questions
related to course assignments and the academic honesty policy should be directed to the
instructor.
ATTENDANCE POLICY
Students are expected to attend, and take quizzes in the section you are registered in. Students
who miss two consecutive weeks of class without providing appropriate documentation of illness
or other emergency may be dropped from the class at the instructors discretion.
ELECTRONICS POLICY
Professionals devote their full attention to important meetings. Therefore, with the sole
exception of hand-held calculators, all other electronic devices (including laptops, cell phones,
PDAs, MP3 players, etc.), are to be turned to the off position at the beginning of class.
CHANGES TO THE SYLLABUS
The course syllabus is a general plan for the course. It may be necessary for the instructor to
announce deviations either in class or as an eLC announcement. Students are responsible for
monitoring eLC for course-related announcements.
ADDITIONAL EXAM POLICIES:
In addition to the policies discussed above, the following policies are enforced in order to insure
that no one student has or gets an advantage over the other students in the course.
All three exams are closed-book. You may use hand-held calculators, but no PalmPilots,
computers, or cell phones.
The exam dates and times are set. If the midterm exam times conflict with one of your regularly
scheduled classes at the University of Georgia, you must furnish me with a copy of your class
schedule showing the conflict, by the drop/add deadline, and I will arrange an alternative time on
the exam date. The final exam is given during the time scheduled by the University; without
exceptions. If you have a medical emergency or a sudden death in the family that prevents you
from attending a midterm exam, contact me before the exam and furnish a doctors note or
obituary particulars when you return to class. If you miss an exam without prior permission and
proper documentation, you will receive a zero on the exam. With prior permission and proper
documentation, the weight of the missed midterm exam will be placed on the final exam. If
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you have a medical emergency or a sudden death in the family that prevents you from attending
the final exam, contact me before the exam and furnish a doctors note or obituary particulars
within one week of the exam. After verifying your information you will be assigned an
incomplete grade and you will complete the course by taking a three hour exam within the first
two weeks of the next semester. If you fail to provide all of the information within one week of
the exam date you will be assigned a zero for the exam.
If you start an exam and have a sudden illness or emergency you will not be allowed to complete
the remainder of the exam at a later time or date. Whatever score you get on the incomplete
exam counts toward your final grade. Your final exam will not be re-weighted should you be
unable to complete a midterm.
You can review your midterm exams in class when the exams are handed back. No notes should
be taken or marks made on the exams.
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Course Schedule
The course syllabus is a general plan for the course; deviations announced to the class by the
instructor may be necessary.
See Assignments folder in eLC for all team assignments and for the individual assignments
that are not from the text book.
Date
Topic and Reading
Assignment Due Today
Jan 11
No class (snowed out!)
Jan 13
Introduction to Management Accounting
Form teams of four
students per team. One
team member should email
the class T.A. the names of
all team members ASAP.
Jan 18
Introduction to Management Accounting (Ch.1)
(skim entire chapter)
Hand in your ACCT
5100/7100 profile
An Introduction to Cost Terms and Purposes (Ch.2)
(read pages 26-37)
2-20, 2-27, 2-28
Jan 20
An Introduction to Cost Terms and Purposes (Contd.)
(read pages 38-49, you may skip Overtime Premium
and Idle Time)
Ch.2 Team Assignment
Jan 25
CVP Analysis (Ch.3)
(read pages 60-72)
3-35
Jan 27
CVP Analysis (Contd.)
(read pages 75-81, omit appendix)
Ch.3 Team Assignment
Feb 01
Job Costing (Ch. 4)
(read pages 96-109)
(In 2-20, the cost object is the
entire product line, not the
individual car)
3-45
Feb 03
4-17
Job Costing (Contd.)
(read pages 110-124)
Call & Associates
Ch.4 Team Assignment
Feb 08
Job Costing (Contd.)
4-34
Activity-Based Costing and Activity-Based
Management (Ch.5). (read pages 136-152)
Ch.5 Team Assignment
(do Part A)
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Feb 10
Activity-Based Costing and Activity-Based
Management (Contd.)
(read pages 155-163)
Ch.5 Team Assignment
(do Part B)
Feb 15
Process Costing (Ch.17)
(read pages 600-610 again and pages 619-621)
Ch.17 Team Assignment
(Part A)
Feb 17
Process Costing (Contd.)
(read pages 611-615, and 621-627, omit appendix)
Ch.17 Team Assignment
(Part B)
Global Defense Inc.
Feb 22
Process Costing (Contd.)
(read pages 600-610)
Gannett Watches
Feb 24
Cost Relevance (Ch.11)
(read pages 386-398)
Ch.11 Team Assignment#1
Mar 01
Cost Relevance (Contd.)
Mar 02
(Wed)
Exam 1 on Chapters: 1, 2, 3, 4, 5, 17, 11
(5pm -9pm., Caldwell 302)
Mar 03
No class
Mar 08
Cost Relevance (Contd.)
(read pages 400-404)
Mar 10
Return Exam 1
Mar 22
Cost Relevance (Contd.)
(read pages 405-410, omit appendix)
Mar 24
Pricing Decisions & Cost Management (Ch.12)
(read pages 428-436, 441)
Mar 29
Master Budget (Ch.6)
(read pages 180-190)
Ch.6 Team assignment#1
(6-33, parts 1-4)
Mar 31
Master Budget (Contd.)
(read pages 191-194)
Ch.6 Team assignment#1
(6-33, parts 5-9)
(not required to submit, think about
it before class)
Ch.11 Team Assignment#2
Ch.11 Team assignment#3
6-23 (no need to submit, think
about it before class)
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Apr 05
Master Budget (Contd.)
(read pages 197-200, 202-207)
Stamp-it
(no need to submit, think about it
before class)
Ch.6 Team assignment#2
(CrossMan Corp)
Apr 07
Flexible Budgets and Variance Analysis I (Ch.7)
(read pages 224-236)
Ch.7 Team assignment#1
(Meridian Financial
Services)
Apr 12
Flexible Budgets and Variance Analysis I (Contd.)
(read pages 239-248)
Ch.7 Team assignment#2
(7-35)
Apr 14
Inventory Costing and Capacity Analysis (Ch.9)
(read pages 298-311)
Ch.9 Team Assignment
Apr 19
Inventory Costing and Capacity Analysis (Contd., pp.
298-311 only)
Apr 20
(Wed)
Exam 2 on Chapters: 11, 12, 6, 7, 9
(5pm -9pm., Caldwell 302)
Apr 21
No class!
Apr 26
Return Exam 2
Performance Measurement, Compensation and Multinational considerations (Ch.23)
(read Pages 798-805)
Apr 28
Wrap-up: The Pace of Change in Management
Accounting
May 05
Final Exam for 11:00a.m. section -- 12.00 noon to
3.00pm
May 10
Final Exam for 09:30a.m. section 8.00 am to
11.00am
May 10
Final Exam for 12:30p.m. section -- 12.00 noon to
3.00pm
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23-23