MBA 6211: Accounting for Decision Making
Course Outline (Fall 2013)
Instructor: Xue Wang (xue.wang@fisher.osu.edu)
Office: Fisher Hall 412
Office hours: Wednesdays 1-3 pm or by appointment
TA: Vipin Das
Review Session: Friday from 1 to 3 pm in GE 210
CLASS HOURS
Section 001: Tu/Th 10:15 – 11:45 p.m. in GE 365
Section 002: Tu/Th 1:15 – 2:45 p.m. in GE 365
COURSE DESCRIPTIONS
Accounting for Decision Making helps you to acquire basic accounting knowledge that is useful in
the day-to-day practice of general management and other careers in business.
Accounting systems provide important information for all types of organizations throughout the
world. Despite their many differences, all accounting systems are built on a common foundation.
Economic concepts, such as assets, liabilities, and income are used to organize information into a
fairly standard set of financial statements. Bookkeeping mechanics compile financial information
with the double entry system of debits and credits. Accounting conventions help guide the
application of the concepts through the mechanics. This course outlines these accounting
fundamentals. It then extends this knowledge by examining how accounting information and
financial statements can be used to make decisions for planning and valuation.
This course is self-contained—students are not expected to have any prior knowledge of
accounting; the only prerequisite is that students must be enrolled in the structured MBA
program. Because students have different backgrounds, some students will possess significant
knowledge of accounting; class discussions will attempt to bridge the wide range of background
knowledge; exams will be developed so that any student can demonstrate his or her proficiency
with accounting based solely on materials used in this class.
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We will cover a considerable amount of material in this course. It is essential that you stay
current with all reading and problem assignments. The course material is cumulative, making it
important to keep up with the readings, complete homework assignments, and pay close attention
to class discussions. Failure to follow these practices often leaves students lost and confused
when it comes time to apply the material.
I expect that you will come to class adequately prepared. I recommend that you prepare for each
session by doing the background reading, preparing solutions to practice problems, and preparing
solutions to the cases assigned. You should note that the practice problems and cases are similar
in structure and degree of difficulty to questions that I will prepare for the mid-term and final
exams.
COURSE MATERIALS
The required text for the course is the single hard-bound textbook “Financial & Managerial
Accounting for Decision Makers” (Cambridge Business Publishers, ISBN: 978-1-618530868) by
Dyckman/Magee/Pfeiffer/Hartgraves/Morse.
Course information will be communicated via Carmen and university email, so it is important that
you regularly check your accounts – best on a daily basis. The course URL is
http://carmen.osu.edu. The username and password you will use to log in to Carmen are the same
ones you use to check your OSU e-mail and to register online for classes. To activate your OSU
e-mail visit http://www.oit.ohio-state.edu/userpass.html and click on ‘how to activate’ or call 688HELP. Lecture notes will be handed out in class or posted on Carmen. Non-HBS cases, solutions to
textbook assigned problems, and other supplemental materials will be posted on Carmen.
Harvard Business School cases will be available at Harvard Business Publishing:
o Go to http://hbsp.harvard.edu, and sign up for the service.
o The HBS cases of the course is registered under “MBA 6211 – Accounting for Decision
Making”: https://cb.hbsp.harvard.edu/cbmp/access/20310583
TEXTBOOK PRACTICE PROBLEMS:
Practice problems from the textbook are assigned for each class session. These are not graded
and will not be collected; however, solving these problems will be very helpful in solidifying the
material and preparing you to move on to the next material. Solutions to the assigned problems
from the textbook will be provided on the course website.
ACCOUNTING CASES
FINANCIAL ACCOUNTING There are ONE HBS case and EIGHT financial accounting cases, usually
involving corporate financial statements. Cases will be used in class, and they emphasize how the
concepts discussed in lectures relate to corporate practices.
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MANAGERIAL ACCOUNTING There are FOUR managerial accounting cases, 2 being the HBS cases.
Cases will be used extensively in classes that apply issues raised in the lecture to a particular
context. Each case discussion will allow an open forum discussion of your analyses of the assigned
case. Suggested questions for some cases are included in the course schedule.
I will collect SIX selected case assignments (4 from financial accounting cases, and 2 from
managerial accounting cases) for evaluation and diagnostic purposes, and the due dates of the
case assignments are listed on the course schedule.
ACADEMIC STANDARDS
The following are the fundamental principles for grading in this course:
o
o
o
The requirements of the course are the same for everyone. This means that it is not
possible to “make up” for poor performance through “extra credit” work.
Grading will be based on relative rather than absolute standards.
It is possible to earn any of the official OSU grades in this course.
Grades are assigned on the following basis:
Graded case assignments
Midterm Exam 1
Midterm Exam 2
Final Exam
10%
30%
30%
30%
Expected Grade Distribution: Grades will be determined based on the overall achievement of the
class. By policy, “all MBA courses will have, at maximum, an assigned grade average of 3.6.”
Students will be ranked by their overall percentage score for the required assignments and
exams. The following grade distribution is an ex-ante approximation of the final grades to be
given:
Grade
A
AB+
B
BC+
C
CD+/D/E
Characterization
Exemplary performance
Strong performance
Good performance
Adequate performance
Adequate performance but demonstrating some deficiencies
Weak performance, demonstrating serious deficiencies
Poor performance, demonstrating pervasive serious deficiencies
Exceptionally poor performance demonstrating pervasive and
acute serious deficiencies
Chronic lack of commitment and effort
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Approximate
Distribution
20%
30%
35%
10%
B- or below
5% across all
grades
The final grade distribution may differ from this ex-ante distribution because of variations in
performance within the class or because of the overall achievement level of the entire class.
Graded Case Assignments
There will be SIX written case assignments that you are required to turn in for a grade. The
assignments are designed to give you practice in applying the course concepts and tools without
grade-related pressures. Of these, the highest FIVE assignments scores will be equally weighted
and together will determine 10% of your course grade. (See assignment grading method below.)
ASSIGNMENT GRADING METHOD: The case assignment will be graded using a satisfactory (S), and
unsatisfactory (U) scheme. The grading guidelines and associated points are:
Category
Satisfactory
Unsatisfactory
Not submitted
Description
Solution is complete and nearly correct or shows
basic concept but has several errors.
Solution is incomplete and/or has major errors.
Not submitted or no effort shown.
Points
2
1
0
LOGISTICS – The assignments are to be turned in at the beginning of class on the due dates given
in the course schedule. You are welcome to work in groups, but you may not copy other students’
works, and each of you should turn in your own assignment.
If you anticipate missing a class, you may turn in a hard copy of the assignment before class at
my office. Email assignments will only be accepted if they are in “ready to print” form in .pdf
files. Late assignments will NOT be accepted.
Exams
There will be three open-book, open-notes exams: two midterm exams and one final exam, each of
which worth 30% of your final grade. The midterm exams will be held on October 3
(Thursday) and November 12 (Tuesday) for all students. The final will be held during the
final exam period for all students.
Section 001
Section 002
Exam 1
October 3, Thursday
10:15 am – 12:15 pm (GE 365)
October 3, Thursday
1:15 pm – 3:15 pm (GE 375)
Exam 2
November 12, Tuesday
10:15 am – 12:15 pm (GE 365)
November 12, Tuesday
12:45 pm – 2:45 pm (GE 365)
Final Exam
TBA
TBA
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Exams consist of a combination of true/false, multiple choice, and problem questions. The
problem questions will be similar to the assigned cases and problems. You may consult the text
and your class notes during exams. You will need a calculator for exams.
All students should plan to take all exams at the scheduled time. Only in the most exceptional
circumstances will a student be excused from an exam, and my prior approval is required.
Incompletes will be given only in accordance with University policy.
CLASS PARTICIPATION
Please do not hesitate to ask questions or make comments during the class. Class participation
makes a class more interesting and ensures that the class is going at an acceptable pace.
Although class participation is not an explicit part of your grade, it may be taken into account for
students at the grade cut-offs.
RE-GRADING POLICY
I try to make the exam grading both accurate and fair. However, if you disagree with the
grading of some part of your exam and would like a re-grade, you can submit a typed re-grade
request. Your re-grade request must include a clear and detailed description of why you believe
there has been a grading error.
Please note though that once you submit a request for re-grade, the WHOLE piece of the exam
will be re-graded so that your overall grade could change up or down.
OFFICE HOURS, REVIEW, & TAS:
There are several sources of help with class materials available to you.
If you have a brief question about course content or procedure, you can send me an email at
xue.wang@fisher.osu.edu. I check my email frequently throughout the day.
If you would like help in person, you can stop by my office hours (Wednesday from 1 to 3 pm) or
the TA’s office hours. If you cannot make it to the regularly scheduled office hours, please make
an appointment with me or the TA (the best way to set up an appointment is by email). You can
also email questions directly to the TA.
The TA will also be available for group review. The TA will go over some textbook problems and
case problems during the review and also answer any questions. Attendance at review session is
optional, but recommended if you have questions about the week’s materials. You can always email
the TA in advance of the session if you’d like them to cover a specific topic or problem. Review
session time and location: TBA.
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STUDENTS WITH DISABILITIES:
Any student who feels s/he may need an accommodation based on the impact of a disability should
contact either instructor privately to discuss your specific needs. Please contact the Office for
Disability Services at (614) 292-3307 in Pomerene Hall Room 150 to coordinate reasonable
accommodations for students with documented disabilities. Also see www.ods.ohio-state.edu for
more information about the Office for Disability Services.
HONOR CODE
Academic integrity is essential to maintaining an environment that fosters excellence in teaching,
research, and other educational and scholarly activities. The Ohio State University and the
Committee on Academic Misconduct (COAM) expect that all students have read and understand
the University’s Code of Student Conduct, and that all students will complete all academic and
scholarly assignments with fairness and honesty. Students must recognize that failure to follow
the rules and guidelines established in the University’s Code of Student Conduct and this syllabus
may constitute “Academic Misconduct.”
The Ohio State University’s Code of Student Conduct (Section 3335-23-04)1 defines academic
misconduct as: “Any activity that tends to compromise the academic integrity of the University,
or subvert the educational process.” Examples of academic misconduct include (but are not
limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student,
and possession of unauthorized materials during an exam. Ignorance of the University’s Code of
Student Conduct is never considered an “excuse” for academic misconduct, so we recommend that
you review the Code of Student Conduct and, specifically, the sections dealing with academic
misconduct.
While we expect all students to have high standards and behave honorably, like every academic
institution, we sometimes encounter cases of academic misconduct. It is expected that students
will report suspected cases of academic and student misconduct; as faculty members we are
obligated by University Rules to report our suspicions to the Committee on Academic Misconduct.
If COAM determines that a student has violated the University’s Code of Student Conduct (i.e.,
committed academic misconduct), the sanctions for the misconduct could include a failing grade in
this course and suspension or dismissal from the University.
We also expect that each student will behave in a manner that is consistent with the Fisher
Honor Statement, which reads as follows:
As a member of the Fisher College of Business Community, I am personally
committed to the highest standards of behavior. Honesty and integrity are the
foundations from which I will measure my actions. I will hold myself accountable
to adhere to those standards. As a future leader in the community and business
1
See: http://studentaffairs.osu.edu/resource_csc.asp
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environment, I pledge to live by these principles and celebrate those who share
these ideals.
If you have any questions about these policies or what constitutes academic misconduct in this
course, please contact me.
Other sources of information on academic misconduct (integrity) to which you can refer include:
 The Committee on Academic Misconduct web pages (http://oaa.osu.edu/coam.html)
 Ten Suggestions for Preserving Academic Integrity
(http://oaa.osu.edu/coamtensuggestions.html)
 Eight Cardinal Rules of Academic Integrity (www.northwestern.edu/uacc/8cards.html)
PERMITTED STUDY MATERIALS
Use of inappropriate study materials, including previously prepared solutions to required
homework problems and files containing tests used during previous terms, compromises the
concept of equal opportunity for all students and therefore is prohibited. You may use materials
that generally are available to all students provided that they maintain the spirit of the learning
objectives.
Note that I consider it a violation of the honor code to use any materials from prior semesters of
this course in preparing for class. This includes class notes, power point presentations, case
write-ups, and problem solutions.
You will have access to homework solutions. These materials may be used only by students
enrolled in MBA 6211 this semester. You may not distribute any of these materials to others,
including other students enrolled in MBA 6211 without permission of an instructor and the
copyright holder, Cambridge Business Publishers.
CLASS COURTESY
Students are expected to be in their seats with cell phones turned off prior to the start of class.
In addition, laptops should not be used in a way that is distracting to the instructor or other class
members — usage in class should be limited to the academic purpose of this course — email and
general internet usage is not permitted.
IMPORTANT NOTE
This syllabus describes a general plan for the course. Keep in mind, however, that I may
occasionally have to modify the course schedule to adapt to student learning needs. You can
always check Carmen for an up-to-date schedule. (Please note that the dates for exams will not
be changed.)
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MBA 6211
COURSE SCHEDULE (subject to change)
DMP = Financial Accounting, by Thomas R. Dyckman, Robert P. Magee, and Glenn M. Pfeiffer
HM = Managerial Accounting, by Al L. Hartgraves and Wayne J. Morse
Thur. Aug. 22
(1)
Topic 1:
Reading:
Introduction/ Overview
DMP Chapter 1
Tues. Aug. 27
(2)
Topic 1:
Reading:
Textbook HW:
Overview of Financial Statements and Reporting Process
DMP Chapter 1 & 2 (pages 41-47)
DMP Ch1: 28, 30
Thur. Aug. 29
(3)
Topic 2:
Reading:
Textbook HW:
Mechanics of Financial Reporting I
DMP Chapter 1A & 2 (pages 48-69)
DMP Ch2: 14, 24, 26, 36, 37, 66
Tues. Sep. 3
(4)
Topic 2:
Reading:
Textbook HW:
Mechanics of Financial Reporting II
DMP Chapter 3
DMP Ch3: 23, 32 (b only), 41(b(2) and c)
Thur. Sep. 5
(5)
Topic 2:
Reading:
Textbook HW:
FA Case 1
(assignment 1):
Mechanics of Financial Reporting III
DMP Chapter 3
DMP Ch3: 25, 28, 34, 42
Preparing Financial Statements (Cisco Systems)
DUE – September 12, Thursday
Tues. Sep. 10
(6)
Topic 3:
Reading:
Textbook HW:
Statement of Cash Flows I
DMP Chapter 4
DMP Ch4: 22, 26, 39, 40, 41
Thur. Sep. 12
(7)
DUE:
Topic 3:
Reading:
FA Case 2:
Cisco Systems (hand in at the beginning of class)
Topic 4:
Reading:
Textbook HW:
HBS Case 1
(in-class):
Revenues Recognitions and Accounts Receivable I
DMP Chapter 6
DMP Ch6: 18, 21, 23, 25, 34, 36, 37
Accounting for the iPhone HBS 9-111-003
Tues. Sep. 17
(8)
Statement of Cash Flows II
DMP Chapter 4
Understanding Financial Statements (Whole Foods and
Johnson & Johnson)
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Case Q:
1. What are the impacts of subscription accounting and
upfront recognition on financial statements?
2. Which method best reflects the economic reality?
3. Should Apple lobby for their non-GAAP numbers to be
sanctioned by FASB?
Thur. Sep. 19
(9)
Topic 4:
Reading:
FA Case 3
(assignment 2):
Revenues Recognitions and Accounting for the iPhone
DMP Chapter 6
Revenue Recognitions & A/R (Tenet)
DUE – September 26, Thursday
Tues. Sep. 24
(10)
Topic 5:
Reading:
Textbook HW:
Inventory
DMP Chapter 7
DMP Ch7: 19, 21, 26
Thur. Sep. 26
(11)
DUE:
Topic 5:
Reading:
Textbook HW:
Tenet (hand in at the beginning of class)
Inventory (continued)
DMP Chapter 7 & Appendix 7A
DMP Ch7: 29, 30, 31, 37
Tues. Oct. 1
(12)
Catch up & Review
Thur. Oct. 3
(13)
Midterm Exam I (DMP Chapters 1-4, 6, 7)
Section 001: 10:15-12:15 pm in GE 365
Section 002: 1:15-3:15 pm in GE 375
Tues. Oct. 8
(14)
Topic 6:
Reading:
Textbook HW:
FA Case 4:
Thur. Oct. 10
Long-term Operating Assets
DMP Chapter 8 & 12 (pages 576-580 only)
DMP Ch8: 11, 13, 14, 15, 22
DMP Ch12: 41
PP&E and Intangibles (Callaway)
No class – Term 1 Exams
Tues. Oct. 15
(15)
Topic 7:
Reading:
Textbook HW:
Inter-corporate Investments I
DMP Chapter 12
DMP Ch12: 12, 24, 26, 30
Thur. Oct. 17
(16)
Topic 7:
Reading:
FA Case 5
(assignment 3):
Inter-corporate Investments II
DMP Appendix 12A
Investments (State Street)
DUE – October 24, Thursday
Page 9 of 11
Tues. Oct. 22
(17)
Topic 8:
Reading:
Textbook HW:
Liabilities I
DMP Chapter 9
DMP Ch9: 23, 31, 36, 54
Thur. Oct. 24
(18)
DUE:
Topic 8:
Reading:
FA Case 6:
State Street (hand in at the beginning of class)
Liabilities II
DMP Chapter 9
Long-term Debt and Leases (Rite Aid)
Tues. Oct. 29
(19)
Topic 9:
Reading:
Textbook HW:
Leases
DMP Chapter 10 (pages 453-466 only)
DMP Ch10: 12, 25, 36
Thur. Oct. 31
(20)
Topic 10:
Reading:
Textbook HW:
FA Case 7
(assignment 4):
Deferred income taxes
DMP Chapter 10 (pages 476-483 only)
DMP Ch10: 22, 34, 46
Deferred Taxes (Brass Eagle)
DUE – November 7, Thursday
Tues. Nov. 5
(21)
Topic 11:
Reading:
Textbook HW:
FA Case 8:
Shareholders’ Equity
DMP Chapter 11 & Appendix 11A (Stock Options only)
21, 26, 41, 49, 50
Shareholders’ Equity (Home Depot)
Thur. Nov. 7
(22)
DUE:
Brass Eagle (hand in at the beginning of class)
Catch up & Review
Tues. Nov. 12
(23)
Thur. Nov. 14
(24)
Midterm Exam II (DMP Chapters 8, 9, 10 & 12)
Section 001: 10:15-12:15 pm in GE 365
Section 002: 12:45-2:45 pm in GE 365
Topic 12:
Reading:
Textbook HW:
HBS Case 2
(in-class):
Case Q:
Introduction and Costing Concepts
HM Module 13, 14 & 17 (pages 1-6 only)
HM Module 14: 13, 14, 17, 31
HM Module 17: 14
Hallstead Jewelers HBS 9-107-060
See assignments embedded in that case
Page 10 of 11
Tues. Nov. 19
(25)
Topic 13:
Reading:
Textbook HW:
MA Case 1:
(assignment 5)
CVP Analysis / Hallstead Jewelers / Relevance
HM Module 15
HM Module 15: 18, 24, 36
CVP Analysis (Nintendo)
DUE – November 26, Tuesday
Thur. Nov. 21
(26)
Topic 13:
Reading:
Textbook HW:
MA Case 2
(in-class):
Case Q:
CVP Analysis & Relevance
HM Module 16
HM Module 16: 14, 16, 22, 30
Purdy Call Centers
Topic 14:
Reading:
Textbook HW:
HBS Case 3
(in-class &
assignment 6):
Case Q
Purdy Call Centers & Framework for Cost Systems
HM Module 17 & Appendix 17A
HM Module 17: 19, 20, 32
Classic Pen: HBS 5-199-029
DUE – December 3, Tuesday
Tues. Nov. 26
(27)
Thur. Nov. 28
Tues. Dec. 3
Thur. Dec. 5
TBA
(Dec. 9-11)
1. What are the burden rates for the years 2000 to 2003?
2. What are the reported costs for the firm’s customers
in the years 2000 to 2003?
3. What are the reported profits for the firm’s customers
in the years 2000 to 2003?
4. What are the possible explanations for the increase in
costs across the two years?
5. How would you bid on the contracts that are coming up
for renewal? How would you bid on new business?
Calculate the revised product costs for the four pens,
based on the activity information collected by Dempsey.
No class – Happy Thanksgiving!!!
(28)
(29)
DUE:
Topic 15:
Reading:
Textbook HW:
Classic Pen (hand in at the beginning of class)
ABC & Classic Pen
HM Module 18
HM Module 18: 14, 16, 20, 22, 23
Catch-up and Review
Final Exam (HM Modules 13-18)
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