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Accy 403 – Managerial Accounting for the MSBA Program
Fall 2001
Course url:
Instructor: Rajib Doogar Office: 225 E David Kinley Hall
Phone: 217.244.8083E-mail:
Office hours: 1:00-2:30 Tu, Th and by appointment.
Course Objective
This course is a one-semester overview of accounting for business enterprises with the aim of training you to use rather than to prepare accounting reports. We cover financial accounting in the first half of the course, managerial accounting in the second.
First we will learn the basics of a financial accounting model. You probably know that accounting is the language of business. My goal is not to make you an expert in speaking this language but to enable you to understand what the experts are saying or, more important, NOT saying. For this you will have to learn some grammar and write a few simple poems … i.e. learn about different types of accounts, how they are used in practice, how they all tie together. We will discuss the rules of accrual accounting which is the accountant’s way of tracing the effects of transactions to particular periods in the life of an entity. At the end you should have a general understanding of how financial reports can be used to support or influence business decisions.
In the second half, we cover the basics of managerial accounting. If financial accounting consists of assigning the effects of a transaction across time periods based on certain logics, then managerial accounting consists of pulling together the relevant effects of a transaction on all aspects of the entity’s operations. Thus from the same data-base financial and managerial accounting numbers allow us to draw different pictures of the same entity. Often these pictures complement each other and lead us to a deeper understanding of the economic “reality” that accounting tries to capture. We will take a user focus to try and understand what various computations really mean and when they should (or should not) be relied upon.
Expectations
The key to success in this course is to do the assigned work every day. The homework and case preparation for each day is my way to get you to learn the technical bits and pieces you will need to follow the discussion in class. Do the assigned homework and case-work every day and bring two copies of all homework to class. Turn in one copy and keep the other for your use in class. Homework solutions need not be “correct” for you to earn credit, however you must have made a genuine attempt to work the problem. Preparing a case for class discussion means reading the case and doing some preliminary calculations so that you can contribute to small group discussions. You need not have “solved” the problem before coming to class. No late work will be accepted under any circumstances. No make-up work will be assigned.
My goal is to help you learn! Please e-mail me as soon as you detect a problem with your progress.
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Accy 403 – Managerial Accounting for the MSBA Program
Fall 2001
Grading
Item Points
Homework (best 12 out of 15 @ 10 points each)120
Class participation 50
Midterm Exams (2 @ 125 points each)250
Final Project 80
Total500
Homework
All homework must be turned in on the date shown in the daily schedule. There are fifteen opportunities to turn in homework. You may turn in more homeworks than 12, only the twelve best scores will count. You should always bring two copies of all homework to class. You will turn in one copy at the beginning of class. The other copy will be very useful to you during the class discussion.
Class Participation
Class participation points are awarded based on some combination of
1)attendance,
2)willingness to volunteer,
3)preparedness with facts and numbers,
4)your impact on other people’s thinking and
5)my subjective assessment of the “value” of your overall comments.
Midterm Exams
These are two in-class, closed book, closed notes exam with no text-storing calculators allowed. The first exam will cover material from days 1-9, the second exam, days 11-21. No makeup exams will be allowed. If you cannot take one of the mid-terms for reasons I do not approve of, you will be assigned the score from the other minus a 10% penalty as your grade on the exam you missed. A failing grade will be assigned to any student who does not take at least one mid-term exam.
Final Project
The final project will consist of teams of four students preparing a 5-6 page write-up and a presentation for the class and any guests I may invite, on a case I will assign you.
Feedback
After the mid-term I will provide one round of feedback about your class participation.
If your participation falls below an acceptable level I may provide you a friendly warning signal early in the semester. This is for students who do not feel comfortable talking in class and will not affect your grade in any way. A second warning, however, will.
Other
My policy is to address issues before they become problems. Consequently I encourage students to provide me with feedback about all aspects of the course and my interactions with you. It is best to contact me by e-mail. However you are welcome to stop by during office hours or by appointment as well.
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Accy 403 – Managerial Accounting for the MSBA Program
Fall 2001
Daily Schedule of Work
Class / Date / Day / Topic /Readings*
/ Assignments1 / Aug 23 / Th / Course Introduction
2 / Aug 28 / Tu / The Institutional Setting & Development of Financial Reporting Standards / BFH, Ch 1 / Hand in Assignment #1.
3 / Aug 30 / Th / Fundamental Accounting Concepts & Conceptual Framework / BFH, Ch 2
(pp. 34-37, 49-55) / Prepare for class discussion: Case 2-1.
Hand in your solution to parts 1-4 of case 2-1.
4 / Sep 4 / Tu / Fundamental Accounting Concepts & Conceptual Framework / BFH, Ch 2
(pp. 38-48) / Prepare for class discussion: Case 2-2: ignore item 18 of Case 2-2.
Hand in your solution to Case 2-2.
5 / Sep 6 / Th / Revenue Recognition, Receivables, and the Income Statement / BFH, Ch 3
(pp. 67-78) / Hand in Problems 3.1, 3.3.
6 / Sep 11 / Tu / Revenue Recognition, Receivables, and the Income Statement / BFH, Ch 3
(pp. 79-89) / Hand in Problem 3.7 or Problem 3.8 and Problem 3.9.
Prepare for class discussion Case 3-1 – see Assignment #2.
7 / Sep 13 / Th / The Balance Sheet / BFH, Ch 4 (pp. 121-141 top) / Hand in Problems 4.2, 4.3, 4.7.
Prepare cases 4-1 and 4-2 for class discussion.
8 / Sep 18 / Tu / The Balance Sheet / BFH, Ch 4
(pp. 141-152). / Prepare Case 4-3 for class discussion (in groups).
9 / Sep 20 / Th / The Statement of Cash Flows / BFH, Ch 5
(pp. 177-186, 194-200) /
Hand in Problems 5.1, 5.3, 5.4.
10 / Sep 25 / Tu / The Statement of Cash Flows / BFH, Ch 5(pp. 186-194) / Prepare for class discussion Problems 5.9 and 5.10.
11 / Sep 27 / Th / Corporate Accountability & the Independent Auditor / BFH, Ch 6 / Prepare for class discussion Problems 6.1 and 6.2, 6.4, 6.5.
12 / Oct 2 / Tu / Exam Review / Practice: Case 2-4, P3-8, P4-3, P5-6 & P5-7.
13 / Oct 4 / Th /
Midterm Exam I
14 / Oct 9 / Tu / The Nature of Costs / Zim., Ch 2 (pp. 26-39). / Hand in any 3 of P2-1, P2-3, P2-5, P2-8, P2-9, P2-20.Read if you can: P2-9, P2-10, P2-15, P2-17, P2-32.
15 / Oct 11 / Th / Organizational Architecture / Zim., Ch 4 / Hand in P4-2, P4-4, P4-11.
Prepare for class discussion P4-8 and P4-10, P4-13 and P-19.
16 / Oct 16 / Tu / Responsibility Accounting & Transfer Pricing / Zim., Ch 5 / Hand in P5-1, P5-2, P5-5, P5-7, P5-19.
Prepare for discussion P5-4, P5-8, P5-22.
17 / Oct 18 / Th / Budgeting / Zim., Ch 6 / Hand in P6-2, P6-3, P6-11, P6-14.
Prepare for class discussion P6-6, P6-9, P6-30.
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Accy 403 – Managerial Accounting for the MSBA Program
Fall 2001
Daily Schedule of Work (continued) … 2
Class / Date / Day / Topic /Readings*
/ Assignments18 / Oct 23 / Tu / Capital Budgeting / Zim., Ch 3 / Hand in P3-3, P3-4, P3-6, P3.7.
Prepare for class discussion: P3-38
19 / Oct 25 / Th / Standard Costing / Zim., Ch 12 & 13 / Hand in P12-7, P13-7.
Prepare for class discussion: P12-11, P12-16, P13-8.
20 / Oct 30 / Tu / Cost Allocation: Theory & Practice / Zim., Ch 7 & 8 / Hand in P8-2, P8-5, P8-8.
Prepare for class discussion P7-12.
21 / Nov 1 / Th / Absorption Cost Systems & Criticisms / Zim., Ch 9 & 10 / Hand in P9-14, P10-2.
Prepare for class discussion P9-4, P9-5, P9-7.
22 / Nov 6 / Tu / Management Accounting in a Changing Environment / Zim., Ch 14 / Hand in 14-6, P14-11.
Prepare for class discussion P14-3, P14-14.
23 / Nov 8 / Th /
Review
24 / Nov 13 / Tu /Midterm Exam II
25 / Nov 15 / Th /Presentation Planning
/ Case for group work in class. Plan presentation, paper.Nov 20 / Tu / Thanksgiving Break – No classes
Nov 22 / Th
26 / Nov 27 / Tu / Presentations / Written Papers Due.
27 / Nov 29 / Th / Presentations / Written Papers Due.
28 / Dec 4 / Tu / Presentations / Written Papers Due.
29 / Dec 6 / Th /
Presentations
/ Written Papers Due.* BFH = Brownlee, E. Richard II; Kenneth R. Ferris; and Mark E. Haskins. Corporate Financial Reporting, 4th edition. McGraw-Hill, 2001; Zim = Zimmerman, Jerold L. Accounting for Decision Making and Control, 3rd edition. McGraw-Hill, 2000. (Both books are available from the University Book Store.)
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