MANAGERIAL ACCOUNTING (Syllabus)
Faculty of Business and Economics
Department of Economics and Finance
Fall Semester 2012
Lecturer: Alqi Bllako (MBA, Msc.)
Office Hours: Monday – Friday 10:00 a.m. – 1:00 p.m.
E-mail: alqibllako@unyt.edu.al; alqi.bllako@esc.edu
Classes: Managerial Accounting – Thursdays 14-17:00, Class 2C
Managerial Accounting: 3 Credit Hours
 Examination of accounting processes for manufacturing concerns
 Differences between external and internal reporting
 Use of accounting information as a tool for:
o Managerial decision-making
o Measurement and control of costs
o Cost-volume-profit-analysis
o Budgeting and performance analysis.
Prerequisites: Financial Accounting (C- or better grade)
Course Rationale
Managerial Accounting focuses on: the development, interpretation, and application of accounting
information for managerial decision making. The course stresses the use of financial information
within organizations for the purposes of understanding and analyzing activities and operations.
Students learn the linkages between accounting information and management planning through cost
analysis (including activity based costing and the cost of quality), operational and capital budgeting,
and performance measurement.
Course Objectives:
The Course Objectives for Managerial Accounting are:
A. Given a trial balance of a manufacturing entity, prepare a schedule of cost of goods manufactured
and an income statement.
B. Given various costs (for products or segments), a target net income, and a what-if analysis, compute
the sales figures in dollars and units.
C. Given a static budget, prepare a flexible budget for various activity levels by cost center and create
a performance report using the actual results to analyze and explain variances.
D. Given segment information, discuss the allocation of fixed costs and identify and use the
appropriate relevant costs to make decisions related to special orders, add/drop a segment, sell or
process further, or make or buy.
E. Given appropriate financial data, prepare a set of income statements, one based on direct costing
and another based of absorption costing, including a discussion of the uses of each.
F. Given a project or choice of projects, compare and contrast the capital budgeting methods
(including tax effect) to evaluate the project or projects and provide your recommendation. In addition,
be able to conduct an analysis of a lease or purchase situation and propose appropriate action.
Attendance
Attendance at every class is essential – If you are going to miss class please notify the instructor.
Classes will begin on time and you are expected to attend and participate. Students missing more than
20% of the class meetings (9 hours in total), without my approval, will receive an "F" grade for the
semester. Withdrawal by students must be in accordance with UNYT withdrawal policies.
Course Outline:
Week #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Chapter
1
Topic
Course Introduction: The Changing Role of Managerial
Accounting in a Dynamic Business Environment
2
Basic Cost Management Concepts and Accounting for Mass
Customization Operations
8
9
Product Costing and Cost Accumulation in a Batch Production
Environment
Process Costing & Hybrid Product Costing Systems
Quiz # 1 Chapters 1-4 (Beginning of Class)
Activity Based Costing and Management
Activity Analysis, Cost Behavior and Cost Estimation
Cost-Volume Profit Analysis
Midterm Exam Chapters 1-7
Absorption and Variable Costing
Profit Planning and Activity-Based Budgeting
10
Standard Costing, Operational Performance Measures and the
Balanced Scorecard
3
4
5
6
7
11
13
14
15
16
17
Flexible Budgeting and the Management of Overhead and Support
Activity Costs
Investment Centers and Transfer Pricing
Quiz # 2 Chapters 8-13 (Beginning of Class)
Decision Making: Relevant Costs and Benefits
Target Costing and Cost Analysis for Pricing Decisions
Capital Expenditure Decisions
Allocation of Support Activity Costs and Joint Costs
Final Exam Review
FINAL EXAM during normal class hours
Textbooks:
Main Course-book*: Ronald W. Hilton (2009), Managerial Accounting –Creating Value in a Dynamic
Business Environment, 8th edition, McGraw-Hill Irvin
Supplementary Course-book: Colin Drury (2008), Management and Cost Accounting, 7 th edition,
South –Western Cengage Learning, (copies available in the library).
Only for the last lectures the book of Brealey/Myers/Allen, Corporate Finance, 8 th or 9th edition,
McGraw-Hill International Edition, is strongly suggested as a very helpful supplementary
reading.
*
Students are required to study the main course-book.
Additional Readings and Other Materials:
Additional readings shall be assigned from other books, articles, or in-class handouts on a case-by-case
basis. Various audio-visual materials shall be included in class presentations.
Basis for Student Evaluation:
1. Quiz # 1: 10 %
2. Midterm Exam: 25 %
3. Quiz # 2: 10 %
4. Final Exam: 35 %
5. Attendance and Participation 10 %
6. Assignments 10%
Grading Scale:
Letter
Percent
Grade
(%)
A
96-100
A90-95
B+
87-89
B
83-86
B80-82
C+
77-79
C
73-76
C70-72
D+
67-69
D
63-66
D60-62
F
0-59
Generally Accepted Meaning
Outstanding work
Good work, distinctly above average
Acceptable work
Work that is significantly below average
Work that does not meet minimum standards for passing the
course
Individual Tutorials:
Students are welcome to arrange a tutorial session with the instructor on an individual basis, provided
that will be arranged on a mutual basis convenience. Students may reach the instructor during office
hours or through email and cell phone.
General Policies:
1. Regular attendance is expected. If there is an urgent reason to be absent, please email the
instructor in advance. A student may not enter an examination without having justified all of
his/her absences.
2. Assignments will be collected at the beginning of the class session. There will be a 10% daily
deduction for late assignments (up to 2 days only, thereafter no grade will be given) unless you
make special arrangements with the instructor in advance via email communications.
3. Any violation of academic honesty principles, e. g. plagiarism, will result in an automatic F on
the course, in line with UNYT’s Honour Code policies.
4. Make-up exams will be given only in the case of a confirmed medical excuse. If possible,
please advise the instructor in advance by email.
Please Note: STUDENTS: If you feel that you have special learning difficulties, please, make an
appointment with Ms. A. Gramo. Ms. Anxhela Gramo is trained to help students with learning
difficulties. She has offered to provide this service to our students, just as it is offered in all American
universities.
Tirana, 04/10/2012
Prepared by:
Alqi Bllako
BSc, MBA, MSc, CFA Candidate