Louisiana Tech University
Managerial Cost Accounting (ACCT 308)
Spring 2015
Instructor: Dr. Andrea R. Drake
Office: 302 College of Business Building (COBB)
Office Hours: M – F 10:00 am – 12:00 pm and by appointment
Office Phone: (318) 257-2822
E-mail:
Class Time and Location: MW 2:00 – 3:50 pm in 112 COBB
Moodle Website: ACCT 308 001 – Spring 2015
Textbook (required): Cost Management: Measuring, Monitoring and Motivating Performance, 2nd edition, by Leslie G. Eldenburg and Susan K. Wolcott. 2011. John Wiley and Sons.
A Non-programmable calculator is required for exams
Course Objectives and Content
This primary focus of this course is on the use of internally generated information to operate, monitor and control business processes. Students will learn specific techniques for analyzing financial and non-financial accounting information to make effective decisions in a variety of settings. Topics covered include advanced cost-volume-profit analysis, non-routine operating decisions, and the development of cost estimation functions. We will also discuss how to implement and analyze various costing methods, including job-order, variable, absorption, and activity based cost systems. Throughout the course, the development of critical thinking skills will be fostered by having students apply problem solving techniques in increasingly complex contexts. In particular, we will focus on situations involving uncertainty, ethical dilemmas, and the absence of one “correct” answer.
Class Sessions
Each class session will consist of an integration of lecture, problem solving and class discussion. You do not need to bring the textbook to regular class sessions, but you may want to have it on days when in-class group problem sets are scheduled. Please print out and bring the course notes for each chapter contained on the Moodle site under “course notes.” The attached outline lists the chapter(s) we will cover each week.
During most class sessions you will have an opportunity to solve problems on your own or in a small group to which you will be assigned. These problems are intended to help you do homework assignments and to give you examples of potential exam questions.
Please feel free to ask questions at any time during class! Everyone benefits from lively class discussions - please participate!
The use of cell phones or other communication devices is prohibited during class time. Class lectures and activities may not be electronically recorded in any format.
Grading:
Your course grade will depend on your total score for the following items. The point distribution is as follows:
Maximum points possible
In-class group problems 80 points
Innovation Project 50 points
Midterm Exam 1 – Monday, April 8 150 points
Midterm Exam 2 – Monday, May 4 150 points
Midterm Exam 3 – Monday, May 18 150 points
Total 580 points
Final course grades will be determined based on the percentage of total points earned. The following scale will be applied.
90% and above: A
80% - 89%: B
70% - 79%: C
60% - 69%: D
Below 60%: F
Group Problems
There will be five 20 point problem sets given in class throughout the term, and your four highest scores will count toward your grade. You will be randomly assigned to a group that you will work with throughout the term. On selected class days, you will work with your assigned group to answer questions and complete problems related to recently covered material. The format will be a set of questions similar to what you might expect on the midterms. Each group will turn in one solution, and all group members who were present will receive the same number of points for that set. If you are absent for a group problem set, you will not receive credit for it. Also, if you are more than 10 minutes late from when we begin the group problem set, you will not receive credit. The purpose of these problems is to help ALL group members learn the material. If you are confident that you understand how to do a particular problem, help your fellow group members understand it as well. Similarly, if you don’t understand how to do something on a group problem, ask for help.
The dates of the group problems are as follows:
Group Problem 1 Monday, March 23
Group Problem 2 Wednesday, April 1
Group Problem 3 Monday, April 20
Group Problem 4 Wednesday, April 29
Group Problem 5 Wednesday, May 13
Homework
Reading and textbook homework problem assignments are contained in the attached course outline. Homework will not be collected, but it is suggested that you complete the assigned problems by the end of the week in which they are assigned or soon after we cover the related material in class. Students should use Microsoft Excel whenever possible and hints on how to develop and use spreadsheets effectively will be given throughout the course. Using Excel to solve relevant homework problems will significantly increase your proficiency in the use of spreadsheet software, which is a critical skill in today’s job market.
As time permits, we will go over questions related to assigned homework problems. Detailed solutions to the homework problems will be posted to the Moodle website. Use the solutions as a learning tool by trying the problems on your own first, and then referring to the solutions when you get stuck or to check your answer. Please DO NOT simply read over the solutions and/or copy them. This will hinder your learning how to solve problems on your own without “hints.” In general, homework problems are for your benefit and doing them on your own (or in a small group) will greatly improve your exam scores.
Innovation Project
You will be assigned to a group in class, which will then be partnered with two teams that are competing in the Top Dawg New Venture Championship (NVC). The teams that are competing are in the process of developing an innovative new product or service and are often in need of help with respect to the financial aspects of launching their new venture. As a group, you will meet with each of your assigned teams and discuss their product or service and what types of accounting information/help they need to prepare the financial section of their presentation that they will be using in the competition. In a sense, you will be acting as accounting consultants to your teams. Working together, you will help them develop items such as:
An appropriate selling price for their product or service
Estimated variable and fixed costs
Estimated capital required to start their venture
Breakeven and profit analysis over time
Cash flow analyses over time
As each team has a unique product or service, you may need to modify and develop other relevant financial measures or items as needed.
For our class, each group will need to write up two summaries of your activities. The first is due Monday, March 25. This summary should consist of 3-5 paragraphs, double spaced, and should describe each team’s product/service and your “plan of action” with respect to how you can help them develop the financial section of their presentation. This would typically include what costs and revenues need to be estimated. You do not need actual numbers for this summary, just an idea of what numbers you’ll need. This summary is worth 20 points.
The second summary is due on Wednesday, April 1 and should include all of the financial items that you helped your teams develop. This summary should have actual numbers and how you determined them. For example, if you decide on a selling price of $10 for the product, where did this come from? Comparisons with competing products, cost-plus, etc. This summary is worth 25 points. Details regarding what should be included in this second summary will be given in class as necessary.
The number of the remaining 5 points for the project will be determined by the teams you are assigned to.
Exams
All exams will consist of a mix of problems, true/false, multiple-choice and essay questions. There will be a combination of both conceptual and calculation type questions. Essay questions will comprise 10 – 20% of all exams such that at least 10% of your overall grade will be based on effective writing skills. Note: Midterm exam 1 will cover all material covered through Wednesday, April 1. Midterm 2 will include primarily material covered from Wednesday, April 8 through Wednesday, April 29. However, selected topics from the first part of the course may be included and you will be informed of these topics at least one week prior to the exam. Similarly, Midterm 3 will include primarily material covered from May 6 through May 13, plus selected topics from earlier in the course.
Students will not be allowed to use notes or other class materials during any of the exams. A basic calculator and pencil(s) are the only materials you may use during exams. Note: no cell phones, PDA’s or programmable calculators will be allowed during exams. If you have a problem with any of the exam dates, please see me as soon as possible. In general, I do not give make-up exams. However, serious (and documented) emergencies will be dealt with on a case-by-case basis. Note: Vacations, interviews, and work schedule conflicts do not count as "emergencies."
Cheating, in any form, on any examination will result in a grade of F for the course. This includes, but is not limited to:
*Looking at another student’s exam during the exam
*Allowing your exam to be looked at by another student during the exam
*Talking/writing/texting about the exam after taking it
*Using/sharing past ACCT 308 course examinations
*Electronic or manual copying of an exam, in any form
Note: I encourage students to collaborate on homework assignments. Other instructors may require you to do your own work exclusively on similar types of assignments. Follow the policies established in each course to avoid academic misconduct.
In accordance with the Academic Honor Code, students pledge the following: “Being a student of higher standards, I pledge to embody the principles of academic integrity.”
Students needing testing or classroom accommodations based on a disability are encouraged to discuss those needs with me as soon as possible.
Exam scores will be posted on Moodle as soon as possible, usually within one week of the scheduled exam date. Physical exams will not be handed back during class. You may see your exam during my office hours or after making an appointment with me. Electronic “copying” of exams in any form is strictly prohibited.
Class Continuance During Emergency Closure of the University
In the unlikely occurrence of a major natural disaster or other catastrophic
event, we will continue to conduct class via Moodle. You will need to
find a location where you have computer access, and we will continue with
our class through this media. Go to the website: http://www.moodle.latech.edu for instructions should a catastrophic event occur.
The last day to drop the class and receive a “W” is Friday, May 1.
Managerial Cost Accounting
Spring 2015
Course Outline
Listed below are the reading and problem assignments for each week. We will cover chapters roughly in the order listed. It is recommended that you do the reading before class and the related homework problems soon after we cover the topic in class. NOTE: this outline is subject to change. Any content additions or deletions will be announced in class and/or posted to the Moodle website.
Week / Reading Assignment / Homework Problems, Group Problems, and Exam ScheduleWeek 1
March 11
Chapter 1 / Textbook: Chapter 1, p. 2 – 23
“Iridium” article
“Ethics” articles / 1.18, 1.43
Article questions for discussion on Monday, March 16 (in course notes)
You must contact your NVC teams by Friday, March 13 to set up meetings.
Week 2
March 16, 18
Chapters 2 and 3 / Textbook: Chapter 2, p. 38 – 62
Textbook: Chapter 3, p. 88-107 / 2.28, 2.29, 2.31, 2.32
2.34, 3.22, 3.23
Week 3
March 23, 25
Chapters 3 and 4 / 3.29, 3.35
Group Problem 1 – Monday, 3/23
Innovation Project Summary #1 due Wednesday, 3/25
Week 4
March 30, April 1
Chapter 4 / Textbook: Chapter 4, p. 128 – 155, including Appendix 4A) / 4.16, 4.23, 4.24, 4.36
Innovation Project Summary #2 due Wednesday, 4/1
Group Problem 2 – Wednesday, 4/1
Week 5
April 6, 8
Chapter 5 / No class Monday, April 6
Midterm 1 – Wednesday, 4/8
Week 6
April 13, 15
Chapter 7 / Textbook: Chapter 5, p. 176 - 197
Textbook: Chapter 7, p. 256-282 / 5.18, 5.19, 5.26, 5.31, 5.32
7.17, 7.20, 7.21
Week 7
April 20, 22
Chapter 8 / Textbook: Chapter 8, p. 300-321 / Group problem 3 - Monday, April 20
Q8.1, Q8.2, Q8.7, Q8.13
Week 8
April 27, 29 / Group problem 4 – Wednesday, 4/29
E8.22, E8.23, E8.26
Week 9
May 4, 6
Chapters 9 & 10 / Textbook: Chapter 9, p. 342-358
Textbook: Chapter 10, p. 376-396 / Midterm 2 – Monday, 5/4
Q9.3, Q9.14, E9.21, E9.23, E9.24
Q10.3, E10.27, E10.29, E10.32
Week 10
May 11, 13
Chapters 11 & 14 / Textbook: Chapter 11, p. 414-438
Chapter 14, p. 548-565 / E11.23, E11.21
E14.20, E14.22
Group Problem 5 – Wednesday, 5/13
Week 11
May 18, 20 / Midterm Exam 3 – Monday, 5/18
Course Wrap-up – Wednesday 5/20