ACCT 372 – Internal Reporting Issues
Syllabus – Fall 2013
Section 14050R 8:00 - 9:50am T/Th
Section 14051R 10:00 - 11:50am T/Th
Section 14052R 12:00 - 1:50pm T/Th Professor: Kendall L. Simmonds
Office: ACC 209a
Office Phone: (213) 740-5014
E-mail:
______
Office Hours:
Mondays: 1pm - 1:45pm; 6:30pm - 7:30pm.
Tuesdays: 3pm - 5pm;
Wednesdays: 1pm - 1:45pm and by appointment.
COURSE DESCRIPTION
This is an intermediate course in management accounting. The Institute of Management Accountants defines management accounting as:
“a value-adding continuous improvement process of planning, designing, measuring, and operating non-financial and financial information systems that guides management action, motivates behavior, and supports and creates the cultural values necessary to achieve an organization’s strategic, tactical and operating objectives.”
There are three things that I would like to highlight about this definition. First, it indicates that management accounting involves the preparation and use of information for internal management purposes. Given that these purposes are very different from those of financial accounting, the accounting is very different as well. Second, management accounting is a process that cuts across the entire organization. Therefore, at least some of the material covered in this course will be relevant to you, no matter what kind of organization you work in and what role you play in that organization. Finally, management accounting includes many different types of information, both financial and non-financial.
This course will focus on cost accounting: There are many different ways of computing costs, and it takes a high level of understanding to know which cost figures to use for a specific decision-making purpose.
It is essential you understand the differences between so-called “traditional” cost accounting systems, which allocate most indirect costs on the basis of direct labor hours or dollars, and the more complex, often more accurate, but more difficult to implement, “activity-based” cost systems. You will see that these two types of systems can yield dramatically different reported cost figures and decisions, even though the company’s real economics do not change. I also want you to learn to be appropriately skeptical when you see a cost report. Just because a number is printed on a computer record does not make it true. Cost accounting systems are just models of reality, and there are good and bad models.
LEARNING OBJECTIVES
This course is designed using the following learning outcomes collectively as a guide:
· To gain knowledge about key concepts and principles that characterize the discipline of Management Accounting
· To become proficient in using managerial accounting information for decision-making in real-world business environments
· To learn how to design systems that will produce relevant management accounting information for decision making and decision influencing
· To develop capacity to design and implement strategies to solve problems and classes of problems in various organizational settings
REQUIRED MATERIALS
· Horngren, Charles T., Srikant M. Datar, and Madhav Rajan [HDR]. 2011. Cost Accounting: A Managerial Emphasis. 14th Edition. Upper Saddle River, NJ: Prentice Hall
NOTE: A customized paperback with selected chapters of the text is available at the USC Bookstore.
· Other materials including case studies will be distributed in class
GRADING
Two (2) Quizzes Scores (each 10%) / 20%Midterm / 20%
Group Project (discussed in class) / 15%
Class Participation / 5%
Final Examination (cumulative) / 40%
Total / 100%
Quizzes and Exams
The quizzes and exams will include multiple-choice questions and short problems. You will be provided calculators to use during quizzes and exams. Preparing for these quizzes and exams is facilitated by keeping up with the work in class, reworking problems that we have done in class, and trying other problems in MyAccounting Lab (accompanies your text).
Group Project will discussed in class
Other: Through the course I will assign cases to be prepared and discussed in class. There is a chance that some of the cases will be collected. So, please come to class to discuss each case as assigned.
Grade Determination
Final scores represent how you perform in the class relative to other students. Your grade will not be based on a mandated target, but on your performance. Historically, the average grade for this class is about a B+ (3.3). Three items are considered when assigning final grades: (1) your total score (see above), (2) the median score for the class, and (3) your ranking among all students in the class.
Class Participation
It is important for you to attend class every day, be well prepared. High quality contributions include: discussion of relevant points about cases and exercises that demonstrate your preparation in advance; insightful questions and/or comments; the use of logical arguments to illustrate or make a point; constructive feedback to the discussion, including counter arguments to the points that have been raised in class; and participation that pushes the discussion of the cases to a higher level. This includes your discussion of the assigned cases.
Policy Regarding Quizzes and Exams
If you believe that your quiz or exam has been graded in error, I am happy to regrade your paper if you put your concern in writing. You must explain why you believe your answer is correct, where “correct” is defined by the solution sheet. NOTE: you must contact me within 7 days of your receipt of the quiz or exam. Additionally, I reserve the right to regard the entire quiz or exam.
Policy for Making up Quizzes and Exams
Unless you have my prior approval, you MUST take quizzes and exams in the section for which you are registered. The policy of the Leventhal School of Accounting is that you should not miss quizzes/exam unless there is a very serious emergency AND you can properly document this emergency. Also, to the extent possible, you must inform me of the emergency prior to the quiz/exam. If you miss a quiz/exam for something other than a serious emergency and/or you cannot provide documentation, you will receive a grade of -0- on the quiz/exam. Instead, I will determine your grade from the remaining exams and the quizzes.
Marshall Guidelines
Add/Drop Process
If you miss the first two weeks of the course, I will ask an administrator to drop you from the course. This is so that everyone who wants the chance to take the course will have the chance. Web registration will be open during the first week of class. After that, I will add people based on the wait list that I am maintaining.
Retention of Graded Coursework
I return all quizzes and exams to you after they are graded. If you are not present on the day a quiz or exam is returned, I will keep the quizzes and exams in my office for you to pick up during office hours. Any quizzes or exams not picked up will be shredded at the end of the 2014 spring semester.
Technology Policy
Laptop and Internet usage is not permitted during academic or professional sessions. Use of other personal communication devices, such as cell phones, is considered unprofessional and is not permitted during academic or professional sessions. ANY e-devices (cell phones, PDAs, iPhones, Blackberries, other texting devices, laptops, iPods) must be completely turned off during class time. There will be plenty of time for using these devices during class breaks. Videotaping faculty lectures is not permitted due to copyright infringement regulations. Audiotaping is also not permitted.
Statement for Students with Disabilities
Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me (or to your TA) as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m. - 5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776. For more information visit www.usc.edu/disability.
Statement on Academic Integrity
USC seeks to maintain an optimal learning environment. General principles of academic honesty include the concept of respect for the intellectual property of others, the expectation that individual work will be submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic work from misuse by others as well as to avoid using another’s work as one’s own. All students are expected to understand and abide by these principles. SCampus, the Student Guidebook, (www.usc.edu/scampus or http://scampus.usc.edu) contains the University Student Conduct Code (see University Governance, Section 11.00), while the recommended sanctions are located in Appendix A.
Students will be referred to the Office of Student Judicial Affairs and Community Standards for further review, should there be any suspicion of academic dishonesty. The Review process can be found at: http://www.usc.edu/student-affairs/SJACS/. Failure to adhere to the academic conduct standards set forth by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead to dismissal.
Emergency Preparedness/Course Continuity
In case of a declared emergency if travel to campus is not feasible, USC executive leadership will announce an electronic way for instructors to teach students in their residence halls or homes using a combination of Blackboard, teleconferencing, and other technologies.
COURSE SCHEDULEClass No. / Date / Topic(s) / Reading Assignments / Problems to Try
1 / Tues. 10/22 / Getting Reacquainted to Cost Terms and Purposes / HDR: Ch. 1, 2, 3, and 10 / None
2 / Thurs. 10/24 / Job Costing / HDR: Ch. 4 / HDR: Exercises 4-17 through
4-21
3 / Tues. 10/29 / Process Costing / HDR: Ch. 17 / HDR: Problems 17-30 through 17-32
4 / Thurs. 10/31 / Process Costing (continued) / HDR: Ch. 18 / HDR: Problems 17-33 and 17-34
5 / Tues. 11/05 / Spoilage, rework and Scrap
Quiz 1 / HDR: Ch. 18
continued / HDR: Problems 18-17 through 18-20
6 / Thurs. 11/07 / Spoilage, rework and Scrap (continued) and Midterm Review / HDR: Problems 18-35 through 18-38
7 / Tues. 11/12 / MIDTERM EXAM
8 / Thurs. 11/14 / Allocation of Support-Department Costs, Common Costs, and Revenues / HDR: Ch. 15 / HDR: Problems 15-17 through 15-20 (only linear equations), 15-32, and 15-33
9 / Tues. 11/19 / Cost Allocation: Joint Products and Byproducts / HDR: Ch. 16 / HDR: Problems 16-32, 16-33, and 16-37
10 / Thurs. 11/21 / Activity-Based Costing and Activity-Based Management
Quiz 2 / HDR: Ch. 5 / HDR: Exercises 5-16 through
5- 20
11 / Tues. 11/26 / Cost Allocation and Customer- Profitability Analysis / HDR: Ch. 14 (skip sales variance analysis) / HDR: Exercises 14-16, 14-18, 14-22
Thurs.
11/28 / THANKSGIVING
HOLIDAY
13 / Tues. 12/03 / Pricing Decisions and Cost Management / HDR: Ch. 11 and 12 / HDR: Exercises
11-17,11-19, 11-22, 11-24
14 / Thurs. 12/05 / Pricing Decisions and Cost Management, (continued)
GROUP PROJECT DUE
Review of course materials / HDR: Ch. 11 and 12 / HDR: Problems
12-26,12-2,
12-28
Final Exam: Covers all materials covered during the course / DATE, TIME and LOCATION: TBA / NONE
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