Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
ACCT 418x
ACCOUNTING FOR MANAGEMENT DECISIONS
SPRING 2011
(2 UNITS)
Section 14179R
Tuesday and Thursday
10:00 a.m. - 11:50 a.m.
Class Location: ACC 205
Course Website
http://blackboard.usc.edu
Instructor
Christopher Vanover, CPA
Mobile Phone
(949) 751-8895
cvanover@usc.edu
Please feel free to send me an email at
Email Address
any time. I will respond to you as soon
as possible.
 Tuesday 1:00 p.m. - 3:00 p.m. in
Accounting Library Room 5
Office Hours
 Thursday: 1:00 p.m. - 3:00 p.m. in
ACC 203
 By appointment
Call (213) 740-4321 (for a personal
emergency) or (213) 740-9233 or listen
Emergencies
to 91.5 KUSC radio (for emergency
information)
 Garrison, Noreen & Brewer,
Required Textbook
Managerial Accounting (13th edition)
(ISBN: 9780073379616)
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
I. GENERAL COURSE INFORMATION
Description
This course is a presentation of select managerial accounting topics, including cost
concepts, job order costing, process costing, cost behavior, cost-volume-profit analysis,
variable costing, activity-based costing, profit planning, performance analysis, standard
costs, segment reporting, the balanced scorecard, and financial statement analysis. The
presentation will consist of moderately-technical expositions of concepts and material,
but the primary focus will be on understanding accounting information from a
management perspective. The ultimate goal of this course is for you to understand
select managerial accounting topics, the users of such financial information, and also
that such financial and/or managerial information is needed and used to make sound
business decisions.
Target Audience
This course is intended for those with limited prior business coursework. The course is
not open to accounting majors. This course satisfies the requirement for the business
minor (and for other departments’ majors); however, it cannot be used toward a degree
in accounting. Students who successfully complete the course are eligible to apply to
the Leventhal School of Accounting’s Masters programs.
Prerequisite Knowledge
ACCT 410x, Foundations of Accounting
II. REQUIRED COURSE MATERIALS
Text
The following textbook is required for this course:
 Garrison, Noreen & Brewer, Managerial Accounting (13th edition) (ISBN:
9780073379616)
Other
Slides, handouts, and supplemental readings/articles will be posted on Blackboard.
Calculator
The quantitative aspects of the course require basic math skills, and you are allowed to
use a calculator. I will provide you with calculators for the midterm and final exams, but
you are required to bring your own calculator each day as we will do problems in class
quite frequently.
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
III. GRADING
Grade Composition and Grading Expectations
Total points for this course are 1,000. Your letter grade will be determined based on
your relative performance, which is outlined below. The 1,000 points for the course are
distributed as follows:
Component
Class Attendance & Participation
Individual Case #1
Individual Case #2
Group Project
Midterm Exam
Final Exam
Total Points Possible
Maximum Points
50
150
150
150
250
250
1,000
Percentage
5%
15%
15%
15%
25%
25%
100%
Due Date
-Thursday, March 31
Thursday, April 14
Thursday, April 28
Thursday, April 7
Tuesday, May 10
Class Attendance & Participation
Students are required to attend classes regularly in accordance with the Marshall
School of Business and Leventhal School of Accounting policies. It is to your advantage
to attend class each scheduled time for its entirety, be well prepared, and act
professionally. This is true for a number of reasons. First, and most significant, the
material we cover in class is what is considered most important for the course and,
therefore, will be the material tested on the midterm and final exams. Second, exams
start promptly at the beginning of class; late arrivers will not be given extra time to
complete them. Third, each absence, late arrival, or early departure will result in a
deduction of approximately 3.5 of the 50 available class attendance points. Students
who attend class in its entirety, come prepared for class, and participate in the class will
receive participation credit for that day. Those students who attend all scheduled
classes in their entirety will be awarded 15 extra-credit points, representing a potential
1.5% impact on one's final grade.
Individual Cases
There are two take-home individual cases for this course that will be distributed at least
one week before their scheduled due date. It is the responsibility of each student to
complete the individual cases independently. Collaboration is strictly prohibited and
represents an academic integrity violation that is subject to severe penalties. Each
student should be prepared for class to:

Answer questions;
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011




Develop and analyze concepts being discussed by explaining or interpreting the
material, or by adding value to the discussion through the expansion of the analysis
from your knowledge;
Raise questions to clarify your understanding of the concepts and material, or to
help in the expansion of the discussion;
Respond to questions from the class on your solutions or positions;
Discuss related or similar concepts that have a bearing on the topic.
You should answer the individual cases as accurately and thoroughly as you can.
Preparing for these cases is facilitated by keeping up with the work in class, reworking
problems that we have done in class, and trying the suggested practice problems.
Cases should be professionally presented, completed in Microsoft Word or Microsoft
Excel (or its equivalent), and printed to be handed in at the beginning of class on the
scheduled due date.
Group Project
In virtually all business organizations, employees are required to work with others on
team projects. Therefore, to foster team development, students will work in groups to
solve a case and to prepare a solution. There will be one group project due on
Thursday, April 28, 2011 covering various topics in managerial accounting.
Collaboration with others outside of your assigned group is strictly prohibited and
represents an academic integrity violation that is subject to severe penalties.
Each group is responsible for its own organization and management style. Each group
member should participate ratably on the group case to perform research or analysis
and prepare solutions as a group. Additionally, peer evaluations will be required to be
completed by each group member and submitted with the group project. Peer
evaluations of the performance and participation of the other members of the group may
adversely affect an individual’s group project grade.
The group project should be professionally presented, completed in Microsoft Word or
Microsoft Excel (or its equivalent), and printed to be handed in at the beginning of class
on the scheduled due date.
Exams
Two exams, each equally weighted, will be given on pre-determined days throughout
the semester. Exams will include multiple-choice questions, short and long problems,
and possibly brief essay questions. The midterm exam, which will be in class on
Thursday, April 7, will cover the material presented from March 8 through April 5. The
final exam, which is scheduled for Tuesday, May 10 from 11:00 a.m. - 1:00 p.m., will
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
cover the material presented from April 12 through April 28. The final exam will not be
cumulative per se, except to the extent that the material covered from April 12 through
April 28 requires knowledge of previously covered material.
Practice Problems
Recommended practice problems are included in the Schedule of Classes section
below. Such practice problems, while optional to complete, are highly encouraged, but
will not be graded or collected. That being said, we will likely review these practice
problems (or similar ones) in class and I am also happy to discuss solutions further with
you during my office hours. Experience shows that student success is still largely a
measure of doing homework.
Grading Scale
Total points
933 and above
900 - 932
867 - 899
833 - 866
800 - 832
767 - 799
733 - 766
700 - 732
667 - 699
633 - 666
600 - 632
599 and below
Grade
A
AB+
B
BC+
C
CD+
D
DF
IV. SELECTED POLICIES
Professional Conduct Expectation
It is in your best interest to act professionally because I reserve the right to decrease
your final letter grade by 1/3 for continued unprofessional conduct. Unprofessional
conduct includes, but is not limited to, coming to class late; interrupting class with
talking, texting, emailing; engaging in activities related to other classes; and so forth. If I
have a concern about unprofessional conduct, I will talk with you individually first. If the
conduct continues, I will lower your grade. So, for example, if your total points would
earn you a B-, I reserve the right to lower your grade to a C+.
Policy for Regrading Exams
The midterm exam will be returned to you, along with a recommended solution. If you
believe that your midterm exam has been graded in error, I am happy to regrade your
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
midterm exam if you do the following: For a simple mistake, such as an addition error or
a multiple-choice answer marked wrong incorrectly, please just show me the error. For
a more complicated issue, such as a debate about a response to an essay or an answer
to a longer problem, please address your concern in writing. You must explain why you
believe your response or answer is correct, where “correct” is defined by the solution
sheet. For either type of issue, you must contact me within 10 days of receiving the
exam. If I do not receive a request for regarding within 10 days of your receipt of the
exam, the grade will be considered final. Additionally, I reserve the right to regrade the
entire exam. Your final exam will be returned to you only at your request.
Policy for Making up Exams
It is to your advantage to take all exams at the time they are given. Further, unless you
have my prior approval, you must take the exams on the day and time they occur and
are scheduled. This latter policy often is dictated by lack of space and the policy
regarding taking the final exam with your section is dictated by the Committee on
Academic Policies and Procedures.
Additionally, there will be no makeup exams given if you happen to miss one. This is
because full class participation is expected. Please remember that exams are given at
the beginning of class, so if you arrive after the exam is finished, you may not take the
exam. If you come to class late but while an exam is still in progress, you may not take
extra time on it and you must turn it in when time is called, irrespective of when you
start.
With regard to exams, the policy of the Leventhal School of Accounting is that you
should not miss exams unless there is a very serious emergency and you can properly
document this emergency. Also, to the extent possible, you must inform me of the
emergency prior to the exam (I understand that this is not always possible). If you miss
an exam for something other than a serious emergency and/or you cannot provide
documentation, you will receive a grade of 0 points on the exam. If there is a serious
emergency and you can provide proper documentation and, where possible, notify me
of the situation prior to the exam, alternative arrangements will be considered on a
case-by-case basis.
Finally, you must take the final exam at the scheduled time (Tuesday, May 10, from
11:00 a.m. to 1:00 p.m.) unless an incomplete contract has previously been approved
according to the Leventhal School of Accounting standards (or, of course, unless there
is an emergency, as above).
Policy for Disposition of Individual Cases, Group Project, and Exams
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
I return all individual cases, the group project, and the midterm exam to you after they
are graded. If you are not present on the day one of these is returned, I will maintain
them in my office for you to pick up during my scheduled office hours. Any individual
cases, group project or midterm exam not picked up will be destroyed at the end of the
Spring 2011 semester.
Policies Regarding IN and W grades
The Leventhal School of Accounting Grading and Academic Standards govern my
giving of IN and W grades in this course.
V. STATEMENT FOR STUDENTS WITH DISABILITIES
Any student requesting academic accommodations based on a disability is required to
register with Disability Services and Programs (DSP) each semester. A letter of
verification for approved accommodations can be obtained from DSP. Please be sure
that the letter is delivered to me as early in the semester as possible. DSP is located in
Student Union 301. The phone number for DSP is (213) 740-0776 or email DSP at
ability@usc.edu.
VI. STATEMENT ON ACADEMIC INTEGRITY
USC seeks to maintain an optimal learning environment. General principles of academic
honesty include the concept of respect for the intellectual property of others, the
expectation that individual work will be submitted unless otherwise allowed by an
instructor, and the obligations both to protect one’s own academic work from misuse by
others as well as to avoid using another’s work as one’s own. All students are expected
to understand and abide by these principles. Scampus, the Student Guidebook,
contains the Student Conduct Code in Section 11.00, while the recommended sanctions
are located in Appendix A (http://web-app.usc.edu/scampus/). Students will be referred
to the Office of Judicial Affairs and Community Standards for further review, should
there be any suspicion of academic dishonesty. The Review process can be found at
http://www.usc.edu/student-affairs/SJACS.
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
VII. SCHEDULE OF CLASSES
Class
No.
1
Day
Date
Tuesday
March 8
2
Thursday
March 10
Topic(s)
Assignments
 Course overview
 Managerial accounting
Managerial accounting
Read:
Syllabus
Read:
Chapter 1
Watch Video:
"Swoosh: Inside
Nike"1
---
Tuesday
Thursday
1
March 15
March 17
Practice
Problems
None
Exercise 1-1 (p.
25)
Exercise 1-2 (p.
25 - 26)
Email Response:
1. Describe
Nike's strategy
and value
proposition.
2. What
constraints does
Nike face?
3. What are your
recommendations
for further
improving Nike's
business
processes?2
SPRING BREAK - NO CLASS
SPRING BREAK - NO CLASS
Accessible online at: http://www.cnbc.com/id/15840232?video=1414941056&play=1
You are required to write a 400 - 500 words response to the questions posed above and email it to
cvanover@usc.edu no later than 10:00 a.m. on Thursday, March 10. Please put "ACCT 418" followed by
your name in the subject line of the email.
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Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
Class
No.
3
Day
Date
Tuesday
March 22
Topic(s)
Assignments
Cost concepts
Read:
Chapter 2
4
Thursday
March 24
Job-order costing
Read:
Chapter 3
5
Tuesday
March 29
Process costing
Read:
Chapter 4
6
Thursday
March 31


Read:
Chapter 5
Cost behavior
Discuss Individual Case
#1
Other:
Individual Case
#1 Due
7
Tuesday
April 5


8
Thursday
April 7
Cost-volume-profit
relationships
Review for midterm
exam
Read:
Chapter 6
Midterm Exam
Practice
Problems
Review Problem
1: Cost Terms (p.
55)
Review Problem
2: Schedule of
Cost of Goods
Manufactured
and Income
Statement (p. 56
- 57)
Review Problem:
Job-Order
Costing (p. 116 118)
Review Problem:
Process Cost
Flows and
Costing Units (p.
160 - 162)
Review Problem
1: Cost Behavior
(p. 212 - 213)
Review Problem
2: High-Low
Method (p. 213 214)
Review Problem:
CVP
Relationships (p.
259 - 262)
Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
Class
No.
9
Day
Date
Tuesday
April 12


Review Midterm Exam
Variable costing
Read:
Chapter 7
10
Thursday
April 14


Activity-based costing
Discuss Individual Case
#2
Read:
Chapter 8
11
12
13
Tuesday
Thursday
Tuesday
April 19
April 21
April 26
Topic(s)



Profit planning
Flexible budgets
Performance analysis
Guest speaker on segment
reporting and the balanced
scorecard
Standard costs
Assignments
Other:
Individual Case
#2 Due
Read:
Chapter 9
Chapter 10
Read:
Chapter 12
Read:
Chapter 11
Practice
Problems
Review Problem:
Contrasting
Variable and
Absorption
Costing (p. 292 293)
Review Problem:
Activity-Based
Costing (p. 334 336)
Review Problem:
Budget
Schedules (p.
393 - 395)
Review Problem:
Variance
Analysis Using a
Flexible Budget
(p. 431 - 432)
Review Problem
1: Segmented
Statements (p.
537 - 538)
Review Problem
2: Return on
Investments and
Residual Income
(p. 538 - 539)
Review Problem:
Standard Costs
(p. 474 - 475)
Leventhal School of Accounting
ACCT 418x: Accounting for Management Decisions
Spring 2011
Class
No.
14
Day
Date
Thursday
April 28
Topic(s)



15
Tuesday
May 10
Assignments
Discuss Group Project
Financial statement
analysis
Review for final exam
Read:
Chapter 16
Other:
Group Project
Due
Final Exam
11:00 a.m. - 1:00 p.m.
Practice
Problems
Review Problem:
Selected Ratios
and Financial
Leverage (p. 741
- 743)