AP/ADMS 3510: Managerial Cost Accounting and Analysis

AP/ADMS 3510: Managerial Cost Accounting and Analysis

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Last Updated March30th2016


AP/ADMS 3510: Managerial Cost Accounting and Analysis

Course Timetable Information is available from the Course Schedule at the York Courses Web site. Please ensure you print or note your Course Type, Day, Start Time, Duration, Location and Catalogue Number.

Summer 2016 Course Outline

Section / Day / Time / Section Director / Location
A / Wednesday / 4:00 -7:00 pm / Professor Roberto Umana / TEL 0006
B / Thursday / 7:00 – 10.00 pm / Professor Robert Murison / R N203
Contact Details:
Prof. Roberto Umana; Email: umana@yorku.ca
Prof. Robert Murison: Email:
Area coordinator – Prof. Nelson Waweru; Email: Tel.: 416-736-5210, Ext. 30326

Calendar Description:

A course in theories and techniques of cost accounting and management accounting. Emphasis is placed on cost accumulation for purposes of (a) asset valuation and income measurement and (b) planning & control.

Pre-requisite Courses:

AP/ADMS 2320 3.0;

AP/ADMS 2500 3.0;

AP/ADMS 2510 3.0;

AP/ECON 1000 3.0;

AP/ECON 1010 3.0;

ortheir equivalents.

Course credit exclusion: AK/ADMS 3510 3.0

Students may not register or continue in this course without having completed the pre-requisite courses at a passing grade (that is D or higher). If you have an issue with a pre-requisite course contact the School of Administrative Studies office at 282 Atkinson phone 416 736 5210: fax 416 736 5963 or email . Your course director is not authorized to waive pre-requisites.

AP/ADMS 2510 3.0 (Introduction to Management Accounting) is taken very seriously as a pre-requisite and students are expected to be fully conversant with the materials covered in that course

Required Texts:

There are two required texts for this course:

1: Horngren, Datar, Rajan, Beaubien & Graham

Cost Accounting: A Managerial Emphasis,

Seventh Canadian Edition, Pearson Canada, 2015. (Note a typo in text states 2016!)

ISBN: 978-0-13-31384-3

There are also electronic versions of this book available from the publisher.

The official textbook for the course is the 7th Edition and all classroom activity will be conducted based on the official textbook as well as any Web Site postings of course materials. This is a very time-intensive course, so we emphasize to you to assist in your successful completion of the course that students would be most efficient in their studies by utilizing the 7th Edition.

A copy of the current textbooks and related student solution’s manual will be placed on reserve in the Schulich School of Business library. There are no resources available for previous editions.

The Students Solution Manual for this text is strongly recommended.

2: Spraakman, Gary. Current Trends and Traditions in Management Accounting

CASE ANALYSIS. Captus Press Inc. 6th Edition, 2015.

ISBN: 978-1-55322-323-8.

The link to purchase this as an e-Book:

The link to access the eBook:
Expanded Course Description:

As a second course in management accounting, students expand their knowledge and understanding of management accounting techniques that were developed in the introductory course in management accounting. It is imperative that students read and understand the course outline, stay current, and do not fall behind.

This course builds on the foundations of managerial accounting that have been introduced in AK/ADMS 2510.03: Introduction to Management Accounting (or its equivalent) and expands in several ways:

  1. All topics are studied through the use of integrated cases.
  2. Each of the topics is studied using a higher level of statistical and mathematical analysis.
  3. The topics are augmented with a detailed study of activity based costing and activity-based management techniques.
  4. Each of the topics is studied by the student in great depth.

With the management accounting techniques from AK/ADMS 2510 and those learned in this course, students will apply these techniques with cases for planning, controlling and decision-making purposes. This course requires students to challenge their knowledge and understanding of management accounting with integrated case analyses.

Unit / Topics / Readings / Class discussion material
May 11th – 12th / The Accountant’s Role The Case Study Approach / Horngren: chs: 1,2Spraakman Chs: 1, 2, 3 / Horngren: Problems 2-18, 2-17
May 18th – 19th / Activity-Based Costing and Process Costing / Horngren: Chs: 5, 17 / Horngren: 5-19, 17-30
Spraakman: Case 25 Major Electronics
May20th / Last day to enroll without the permission of the instructor
May 25th – 26th / Flexible Budgets, Variances and Controls / Horngren:
Chs: 7, 8 / Horngren: 7-21, 8-18 Spraakman: Case 7 Coffee Maker Supreme
June 1st – 2nd / Revenue & Customer Profitability Analysis / Horngren: Ch1 6 / Horngren: 16-20 16-21 16-27Spraakman Case 27: Pasta Etc. Family Restaurants
COMMON MID TERM #1 – Units 1-4 Sunday June 5th 6-8 PM
Unit / Topics / Readings / Class discussion material
June 8th – 9th / Inventory Valuation and Cost Behavior / Horngren: Chs 9,10 / Spraakman: Case 17: Electronic Process Equipment
June 15th -16th / Decisions & Relevant Costs
Pricing & Profitability Management / Horngren: Chs: 11,12 / Horngren: Case 12-37
Spraakman: Case 5
CCP Publishers
June 22nd - 23rd / Cost Application and Cost Allocation / Horngren: Chs: 14,15 / Spraakman Case 8:
Consolidated Pump
June 29th -30th / Strategy & the Balanced Scorecard / Horngren: Ch 13 / Spraakman: Case 4
Bright’s Lodging & Travel
July 6 - Last day to drop the course without receiving a grade
July 6th -7th / Capital Budgeting / Horngren Ch: 20 / Spraakman: Case 29
Precious Metals
COMMON MID TERM #2 – Units 5 – 8 - Sunday July 10th 6-8 PM
July 13th -14th / Transfer Pricing And
Multinational Performance Measurement / Horngren: Chs: 21,22 / Spraakman Cse 15:
Dindal Air Conditioners
July 20th – 21st / Spoilage, Rework & Scrap Inventory Cost Management / Horngren: Chs: 18,19 / Horngren Case 18-47
July 27th -28th / Course Review / Spraakman: Case 24
King Coal

There are two common mid-term examinations and one final examination.

30% - Midterm Exam #1 (2 hours)
30% - Midterm Exam #2 (2 hours)

40% - Final Examination (3 hours)

The midterms may cover material from the prerequisite course ADMS 2510 and will cover material covered in the classes prior to the exam as follows:

Midterm #1 units1 to 4 and a small case study

Midterm #2 units 5 to 8 and a small case study

The common final examination will be a three-hour exam for 40% and may cover all topics studied in the course. It will include analytical problems and a case and will be scheduled by the registrar.

NOTE: During the semester participants are required to write at least two of the mid-terms since the weight of the final examination shall not exceed 70% of the final grade. NO EXCEPTIONS. REPEAT – NO EXCEPTIONS

Additional Information / Notes

Mid-Term Exams: The midterm exams will consist of problems comparable to those performed in class and recommended for this course plus problems about any of the in-class case discussions. Students must write mid-term examinations in the section in which they are enrolled. Rooms cannot accommodate additional writers from other sections. If you miss a mid-term exam, no make-up exam is available. Instead the weight of “one” of the missed exams (30 marks) will be automatically transferred to the final examination weighting. With an attempt at a mid-term exam, the weight of that mid-term exam (30 marks), will no longer be eligible for transfer to the final examination weighting.NO EXCEPTIONS.

Final Exam: Deferred standing may be granted to students who are unable to write their final examination at the scheduled time or to submit their outstanding course work on the last day of classes. In order to apply for deferred standing, students must complete a Deferred Standing Agreement (DSA) Form and submit their request no later thanfive (5) business days from the date of the exam. The request must be properly submitted with supporting documentation directly to the main office of the School of Administrative Studies (Room #282 Atkinson), NOT to the Course Director. These requests will be considered based on their merit and decisions will be communicated to the students by the main office. Students with an approved DSAForm will be able to write their deferred examination during the School's deferred examination period.The deferred examinations for the Summer 2016 term shall be held in the period Sept 30th to Oct 2nd2016.

No further extensions of deferred exams shall be granted. The format and content covered of the deferred examination may be different from that of the originally scheduled examination. The deferred exam may be closed book, cumulative and comprehensive and may include all subjects/topics of the textbook whether they have been covered in class or not. Any request for deferred standing on medical grounds must include an Attending Physician's Statement Form; a “Doctor’s Note” will not be accepted.

DSA Form:

Attending Physician's Statement Form:


DATE: Between the 11thand 19th August2016

LOCATION: TBA (see Announcements section of your website).

Concerns with Marking:

If you have concerns with the marking of your work, write your concerns on the cover page and re-submit it to your course director, who will deal with the concerns. Note, as there is a certain amount of judgment in marking, the entire exam or assignment will be re-marked, and the overall mark could go up, stay the same, or fall.

Academic Honesty:

Students are advised to read and adhere to the policy on academic honesty, as stated in the Atkinson calendar. Cheaters will be prosecuted. Cheating on exams and also involving plagiarism in written assignments represents attacks on the academic integrity. Cheating and plagiarism of any type are not acceptable, and possible consequences include an F in the course.

Course Learning Objectives:

Having successfully completed this course students are expected to have attained the following learning objectives:

1: a comprehensive knowledge of cost accounting terminology and techniques;

2: an ability to apply cost accounting techniques to business cases;

3: an ability to present a case analysis in good form.

Before Classes Start:

Please review all material from your Introductory Management Accounting course (AP/ADMS 2510 or equivalent).THIS IS A CRUCIAL REQUIREMENT TO ENSURE SUCCESS IN 3510. It is assumed that students LEARNT AND RETAINED concepts and applications from 2510. If you have not retained this material, you ought to do some independent study to be adequately prepared for 3510 AND review this material throughout the course as 3510 builds on this by testing its application. One cannot apply the material without a sound understanding of the concepts.

Comprehensive Study Syllabus

In addition to the materials covered in the classroom, students are offered the following list of materials they could take up individually to consolidate their knowledge and prepare for the mid-term and final examinations.

Weekly Self Study Problems:

Unit 1:

Problem 1-24, page 21:Professional Ethics and End of Year Actions

Problem 1-26, page 22:Professional Ethics and Earnings Management

Problem 2-37, page 53:Statement Preparation

Problem 2-38, page 53:Statement Interpretation

Unit 2:

Problem 5-36, page 166:ABC-Department and Activity Cost Rates

Problem 5-38, page 167:ABC-Product Cross-Subsidization

Problem 17-39, page 677: Weighted Average Process-Costing Method

Problem 17-40, page 677: FIFO Process-Costing Method

Unit 3:

Problem 7-38, page 269:Comprehensive Cost Variances

Problem 7-40, page 270:Product Input Mix and Yield Variances

Problem 8-33, page 310:Flexible Budgets

Problem 8-40, page 313:Comprehensive Cost Variances

Unit 4:

Problem 16-24, page 628:Customer Profitability

Problem 16-29, page 631:Variance Analysis – Multiple Products

Problem 16-30, page 631:Market-Share and Market-Size Variances

Problem 16-40, page 636:Revenue Allocation for Bundled Products

Unit 5:

Problem 9-28, page 351:Throughput

Problem 9-34, page 354:Variable Costing versus Absorption Costing

Problem 9-40, page 357:Variable Costing versus Absorption Costing

Problem 10-27, page 402:High-Low Method versus Regression Analysis

Unit 6:

Problem 11-34, page 445:Optimal Production Mix/Relevant Costs

Problem 11-37, page 447:Relevant Costs

Problem 12-29, page 483:Target Prices/Costs/ABC

Problem 12-35, page 514:Governance/Pricing Considerations

Unit 7:

Problem 14-30, page 558:Support Cost Allocation

Problem 15-34, page 592:Joint Cost Allocation

Problem 15-35, page 592:Further-Processing Decision

Problem 15-39, page 593:Net Realizable Value

Weekly Self Study Problems:

Unit 8:

Problem 13-30, page 519:Balanced Scorecard and Strategy

Problem 13-30, page 520:Balanced Scorecard and Strategy

Unit 9:

Problem 20-22, page 784:Payback and NPV methods, no income taxes

Problem 20-33, page 786:Equipment purchase w/ income tax implications

Unit 10:

Problem 21-30, page 821:Governance/Transfer Pricing

Problem 21-32, page 822: Transfer Pricing/Excess Capacity

Problem 22-32, page 862:ROI, RI, DuPont Method, Investment Decisions

Problem 22-34, page 863:Executive Compensation, Balanced Scorecard

Unit 11:

Problem 18-30, page 706:Spoilage/Weighted Average

Problem 18-44, page 709:Governance/ Spoilage

Problem 19-27, page 745:EOQ and Reorder Point

Problem 19-40, page 749: Supply-Chain Analysis

Week 12:

Final Exam Overview/Format/Expectations/Case Study Method


The Senate Committee on Curriculum & Academic Standards Web site provides an important read, the: STUDENT INFORMATION SHEET.
The Student Information Sheet includes:

  • York's Academic Honesty Policy and Procedures / Academic Integrity Website
  • Access/Disability
  • Ethics Review Process for Research Involving Human Participants
  • Religious Observance Accommodation
  • Student Conduct Standards

Additional information:

  • Academic Accommodation for Students with Disabilities
  • Alternate Exam and Test Scheduling
  • Grading Scheme and Feedback Policy
    The Senate Grading Scheme and Feedback Policy stipulates that (a) the grading scheme (i.e. kinds and weights of assignments, essays, exams, etc.) be announced, and be available in writing, within the first two weeks of class, and that, (b) under normal circumstances, graded feedback worth at least 15% of the final grade for Fall, Winter or Summer Term, and 30% for ‘full year’ courses offered in the Fall/Winter Term be received by students in all courses prior to the final withdrawal date from a course without receiving a grade (see the policy for exceptions to this aspect of the policy -
    "Final course grades may be adjusted to conform to Program or Faculty grades distribution profiles.” If Term Test will be held outside of regularly scheduled class time, include announcement of day, date and time here (e.g., Saturday, October 28, 2006, 10 am to 11:30, room TBA).

"20% Rule"
No examination or test worth more than 20% of the final grade will be given during the last two weeks of classes in a term, with the exception of classes which regularly meet Friday evenings or on the weekend (Saturday and/or Sunday at any time). (Approved by Senate, November 28, 1996)

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