2023-24 Course Outline
MBA PROGRAM: Accounting and Control for Managers
BUSINESS 9202
Professor: Vaughan S. Radcliffe, PhD
Assistant: Ms. Gina Luciani
Office: 3354
Office: 2319
E-mail: vradcliffe@ivey.ca
Email: gluciani@ivey.ca
Phone: 519-661-4170
Phone: 519-661-2111 x 86805
LAND ACKNOWLEDGEMENT
Western University is situated on the traditional lands of the Anishinaabek, Haudenosaunee,
Lunaapewak, and Attawandaron peoples, who have long-standing relationships to the land and
region of southwestern Ontario and the city of London. The local First Nations communities are
the Chippewas of the Thames First Nation, the Oneida Nation of the Thames, and the Munsee
Delaware Nation.
INTRODUCTION
I don't know accounting.
Bernie Ebbers, Ex-CEO WorldCom
Former Inmate #56022-054, Oakdale Federal Correctional Complex, Louisiana.
I have no use for bodyguards, but I have very specific use for two highly trained certified public
accountants.
Elvis Presley
LEARNING OUTCOMES
The objective of Accounting and Control for Managers is to introduce you to the fundamentals of
accounting measurement, and to assist you in becoming an intelligent and knowledgeable user
of accounting information, so that you can use relevant accounting information for managerial
decision making.
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COURSE OBJECTIVES
This course does not require you to have prior accounting knowledge or experience. Those of
you needing instruction in basic financial record keeping will have completed study of such
material in the Ivey Preparatory Knowledge Program. We will therefore not be covering the
mechanical transaction analysis elements of the accounting model.
If you have taken accounting courses previously, you will find that this course is not very similar
to those you have taken. It is designed to address accounting from the perspective of a user of
accounting information, rather than a preparer of the information. It is really about measurement.
The manager’s use of the accounting information will be uppermost in our minds as we examine
the areas of Financial Accounting, Managerial Accounting, Cost Accounting, and Management
Control Systems. It concentrates on the transformation and interpretation of financial measures
to assist managers in making decisions regarding alternatives.
The material in this course should not be regarded as a separate topic within the program. Rather,
it is a body of knowledge used in all areas of business, so much so that accounting is often
referred to as, “the language of business”. We will cover the functional basics of accounting as it
pertains to management and business. Specifically, we will concentrate on data collection, proper
classification, logical processing, managerial interpretation, and relevant usage of accounting
information within the firm. The cases are carefully chosen in order that you can develop the skills
and ability to define the management issue, select an appropriate accounting technique, and
transform available accounting data into a form that is correct for the issue being addressed. The
objective of this course is to make you, as a future manager, an intelligent and knowledgeable
user of accounting information, and a more effective decision maker.
The first part of the course surveys some of the key concepts of Financial Accounting. In this part
of the course, we will examine and understand the orderly accumulation and analysis of business
transactions between the organization and its environment. The course addresses the most
relevant topics for managers in understanding the structure, content, form and purpose of external
financial statements. Using this framework, it is possible for managers to develop meaningful
financial statements that reflect the economic reality of the business, that help guide the
operations of the business, and act as the primary reporting vehicle for external parties. We will
develop a sense of the strengths and weaknesses of the current approach to financial reporting.
Our purpose here is to make you an intelligent user of the financial statements, not a preparer of
such statements; the intent is that you be equipped for management, not to enter the accounting
profession.
The financial accounting section only introduces some of the most important concepts in the
measurement model. It is not intended to be a comprehensive review of all financial accounting
matters. Rather it is intended to introduce the basics and to prepare you to be able to read and
interpret financial statements from a managerial perspective.
A second part of the course examines Managerial Accounting concepts and frameworks. This
section focuses on the transformation and use of the accounting information to assist functional
managers within the firm in addressing all manner of decisions. The course looks at appropriate
quantitative approaches for both short and long-term decisions, and the application of these
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concepts to marketing, operations, and human resource management. The underlying theme of
“different costs for different purposes” prevails. Managerial accounting’s dominant strength is its
flexibility and its specificity to the unique problem at hand. The more specialized topics of cost
management systems, and management control systems are introduced in the last third of the
course and provide a base for additional development in electives and other study.
Financial Reporting
This section of the course examines and discusses some of the key accounting concepts that are
used by management in the preparation of financial statements, primarily for external parties to
the firm. Among the topics to be covered are Generally Accepted Accounting Principles including
IFRS, revenue recognition, inventory valuations, determination of cost of goods sold, the cost of
long-lived assets, the cost of intangible assets, accrual accounting, cash flow analysis, liabilities,
and financial statement analysis. This section will also familiarize you with the current regulatory
environment for accounting, and will address auditing issues.
At the conclusion of this section, you should have an appreciation for the content, structure, and
limitations of the information present in financial statements such as the Balance Sheet, the
Income Statement, and the Statement of Cash Flows. This material forms a fundamental basis
for concepts presented in the Finance course. Financial accounting information is often a crucial
input to tools used for valuation and other finance issues. Failure to appreciate either the relative
quality of corporate financial information and/or the judgments involved in its preparation can lead
to substantial error in decision making. Therefore, it is critical that you understand the nature and
boundaries of this information source prior to using it analytically in management decisions.
Managerial Accounting
This section of the course examines the transformation and use of accounting information from
the perspective of functional managers within the firm who are in need of information as input to
regular operating decisions. Much of this section of the course examines the way in which existing
accounting data may be classified into categories that are most appropriate to the issue being
addressed. Topics to be covered include cost behavior patterns, break even analysis, contribution
analysis, relevant cost analysis, sunk costs, discounting future after tax cash flows, present value
analysis, and capital budgeting systems. These concepts are applied predominantly to situations
in marketing.
At the conclusion of this section, you should be capable of recognizing the need to transform
existing accounting information into a different form specific to the issue being addressed. You
will be able to define the issue, identify the appropriate form and classification of accounting data
relevant to the issue, and be able to undertake the fundamental transformation of the data. You
will be able to integrate the results of the quantitative financial analysis of the situation with the
other non-quantitative factors that are critical to the issue.
Cost Management
This section of the course introduces the topic of cost management in organizations. The material
is intended to help you understand the fundamentals of cost assignment to outputs within any
type of firm. This section looks at the relationship of cost assignment and the process for
generating outputs. The section introduces several techniques used in organizations such as step
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down cost allocation, and standard costing. This section also discusses Activity Based Costing,
and Strategic Cost Management.
In this section, we will develop a framework for looking at a costing system within an organization
and determining the suitability of the outputs of that system for various decisions that
management must make, for which cost is often an important input factor. This section develops
links to your studies of operations management. Specifically, many of the basic concepts were
developed in manufacturing settings, but have become applicable in service operations.
Management Control Systems
This section of the course examines the linkage between the responsibility structure of an
organization, and the manner in which performance of individuals and economic units is
measured. The section also looks at budgeting, planning, and transfer pricing within decentralized
organizations. This section examines how the need to measure and evaluate performance, while
using data from the accounting system, must be carefully designed and coordinated with the goals
and strategy of the organization.
This material develops a very strong link to the concepts presented in the Leading People and
Organizations course. The section looks closely at how individuals might react or behave given
that various types of accounting measures and data were being used as input data to the
evaluation. Behavioral issues are crucial to the role of accounting in organizations and society.
GRADING COMPONENT SCHEME
We strive to evaluate all available information in order to, at the end of the school year, arrive at
a final grade that fairly reflects the student’s demonstrated capability in dealing with and
understanding the course content. Evidence of this capability comes through classroom
contribution, examinations, reports and other vehicles that may be used throughout the course.
The grade in this course is a composite of class contribution, a Midterm 24 Hour Report and a
Final Examination. I will assign your grades for written and non-written work based on the
following:
In Class Contribution
Mid-term 24 Hour Report
[Team Report Distributed Thursday, April 13 at 2 pm & to
be submitted by 2pm Friday, April 14, 2023]
Final Examination
[Wednesday 24 May 2023, 9 am – 1 pm]
Total
30%
20%
50%
100%
Midterm 24 Hour Report
The midterm will take the form of a team-based report on the financial statements of a major
company. The objective will be to allow you to demonstrate your understanding of key concepts
in financial accounting from a managerial perspective.
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Final Examination
The final examination will be case based and will be comprehensive in nature. To prepare for the
final you should review all material covered in the course.
CLASS CONTRIBUTION
Your participation in class will provide the basis for my judgment of your normal level of day-to-day
preparation. I expect you to be fully engaged in the entire learning process and you should be
prepared in each class to participate voluntarily and when called upon. This means devoting time
and energy to preparation before class, including learning team meetings, listening to others
during class discussions and engaging in class discussions. Collective reasoning and discovery
are critical to the successful application of the case method. Prior to any case discussion,
engaging in discussions with (or examining notes from) others who may have already experienced
a case is a clear violation of our norms.
Your class contribution grade will be based on a daily assessment of your performance. Both the
quantity and quality of your class contribution will be assessed as indicated below. No credit will
be given for missed classes, although you might be asked to provide evidence of your preparation
in writing.
Asking questions can make high quality contributions to class when they advance general
understanding by stimulating an in-depth analysis or explanation of a point. Remember, the main
objective of your contribution is not evaluation, but learning and helping your colleagues to learn.
The following list might be of some help.
Outstanding Contribution (90-100%)
 Contributes at the highest levels throughout the class;
 Contributions indicate thorough preparation;
 Contributions reflect careful attention to the ongoing discussion;
 Contributions include strong follow-up comments and questions;
 Helps integrate operations concepts with other subjects;
 Frequently explains difficult points or concepts;
 Provides sustained strong support to enrich classroom learning;
 Builds and develops outstanding arguments for a position.
Excellent Contribution (80-89%)
 Contributes frequently to discussions;
 Contributions indicate careful preparation;
 Contributions reflect attention to and consideration of the ongoing discussion;
 Explains difficult points and concepts;
 Helps guide class discussions;
 Regularly builds and develops strong arguments for a position.
Good Contribution (70-79%)
 Contributes fairly regularly to discussions, but primarily in the beginning of the class;
 Contributions indicate consistent preparation;
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


Contributions reflect thoughtful responses to the ongoing discussions;
Raises questions that help focus on difficult points or concepts;
Occasionally builds reasonable arguments for a position.
Fair Contribution (60-69%)
 Contributes irregularly to class discussions;
 Gives occasional indication of preparation;
 Rarely builds on the ongoing discussion.
Poor Contribution (50-59%)
 Contributes rarely to discussions;
 Gives little indication of preparation and thought;
 Does not aid in providing a positive atmosphere for meaningful discussion.
Unsatisfactory Contribution (0-49%)
 Almost never contributes to discussions;
 Gives minimal indication of preparation or thought;
 Actively inhibits or impedes the course of class discussions;
 Misses a significant number of class sessions.
CLASSROOM
NORMS
The classroom norm is no laptop or cell phone use during class sessions. Using your computer
during class for personal activities such as reading/writing email, writing letters, surfing the
internet, playing games, etc. is also distracting and counterproductive and violates our norms.
No student may record any classroom activity without express consent of the
professor. If you have (or think you may have) a disability such that you need to record
classroom activities, you should contact Accessible Education to request an appropriate
accommodation.
IVEY EXPECTATIONS
At Ivey we are proud of the diversity in our students, faculty, staff, and alumni. You will work with
people who differ in their gender, race, religion, nationality, and sexual orientation. You will benefit
from these differences in the school in the form of higher diversity in thought. With this benefit
comes the responsibility to value and respect each other despite and for their differences. Any
behaviour or language that is negative or harmful about someone’s gender, race, religion,
nationality, and sexual orientation health is against Ivey’s values and will not be tolerated.
TEAM ASSIGNMENTS
Students completing team assignments will receive the same grade as their team members for
the same group report. Students are expected to contribute substantially to group work. Every
student understands that all group members are equally responsible for the entire project unless
otherwise indicated by the professor. If an individual(s) has not contributed significantly to the
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group’s work, the individual in question may be severed from the group and receive a grade
independent from the group. The faculty reserve the right to assign a failing grade to any
individual who has not meaningfully contributed to the group. The faculty may request each
student to independently evaluate the contribution of other group members.
ATTENDANCE
Attendance at all sessions in this course are mandatory and it is your responsibility to advise me
if you are unable to attend a class. Circumstances may arise which make it impossible for you to
attend such as due to health-related reasons. If you are going to be absent, it is your responsibility
to inform me prior to the start of the class using Ivey’s absence reporting system that can be
accessed through Learn. Details on the absence reporting system can be found in the Student
Handbook.
Any student who, in the opinion of the instructor, is absent too frequently from class or
laboratory periods in any course will be reported to the MBA Faculty Director (after due warning
has been given). Specifically, any student missing more than 25 percent of the classes will not
be permitted to receive credit for the course and will be debarred from taking the regular
examination in the course.
MBA students are permitted to miss 10% of a course’s class sessions as allowable absences
(i.e., 3 classes). These will not count towards your course contribution grade but will be
considered an absence for attendance and count against the 25 percent.
See also Western’s Policy on Accommodation for Illness at
https://www.uwo.ca/univsec/pdf/academic_policies/appeals/accommodation_medical%2015JUN.pdf
In the event of an illness requiring medical documentation, please contact MBA Program Services
for instructions.
EXPECTATIONS AND CLASS CONTRIBUTION
I take a developmental approach to contribution and work hard to engage students who
may initially be less vocal. You come to graduate school in order to develop, and the ability
to quickly assess and communicate managerial approaches is one of the signature traits
known in the market to be developed by the Ivey MBA program. You must work hard to
develop these qualities by expanding your ability to think quickly, express ideas and
discuss solutions to complex problems.
Your participation in class will provide the basis for my judgment of your normal level of day-to-day
preparation. I expect you to be fully engaged in the entire learning process and you should be
prepared in each class to participate voluntarily and when called upon. This means devoting time
and energy to preparation before class, including learning team meetings, listening to others
during class discussions and engaging in class discussions. Collective reasoning and discovery
are critical to the successful application of the case method. Prior to any case discussion,
engaging in discussions with (or examining notes from) others who may have already experienced
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a case is a clear violation of our norms.
The class norm is no open laptops during class sessions. Using your computer during class for
personal activities such as reading/writing email, writing letters, surfing the Web, playing games,
etc. is also distracting and counterproductive and violates our norms.
Attendance at all sessions in this course is mandatory and it is your responsibility to advise me
and get assistance if you are unable to contribute in class discussions. Circumstances may
arise which make it impossible for you to attend. For example, if you are unable to attend a
class due to health-related reasons. If you are going to be absent, it is your responsibility to
inform me.
Feedback
I will provide various kinds of feedback on your progress during the course. For the midterm report
you will receive written feedback that identifies the kinds of issues that were expected or sought
in the paper. I will also provide you with comments about your exam or paper regarding where I
think you need to do things differently to improve for a subsequent exam or report.
After the first few weeks of class I will review initial data on class contribution and will advise you
as to whether your contribution exceeds expectations, meets program expectations, or warrants
remediation. The early timing of this feedback is designed to allow you opportunity for
development.
Discussion of Evaluation
On the return of any written examination or report, you must. take 48 hours to read the feedback
provided and to read examples of better papers. After you have done that, if you believe that your
grade is in error and you wish to have your paper re-graded, you must request this in writing within
seven days of receipt, indicating specific areas of concern. Despite numerous controls in
evaluation procedures, mistakes can sometimes occur. While I am willing to re-grade the paper,
you must understand that your grade may rise, fall or stay the same. This opportunity should be
used with prudence.
If you wish to discuss the feedback that I have provided to you, please make an appointment for
office hours via my assistant. Bring your paper so that we can go over the feedback to see how it
applies to this exam, and how it might be used in future exams and reports. My objective in this
review will be to assist you in improving your knowledge of accounting and your managerial
perspective.
MATERIALS
The required text for this course is by Michelle Hanlon, Robert Magee, Glenn Pfeiffer and
Thomas Dyckman.
Financial & Managerial Accounting for Decision Makers, 4e | Cambridge Business Publishers
(cambridgepub.com)
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Textbook chapter readings are drawn from this electronic text. eBook access is available at the
hyperlink above.
Recommended Textbook Quizzes.
You are recommended to enroll for optional online quizzes using questions selected by me for
you from the publisher’s test bank. These quizzes are an aid for studying and are good practice
in accounting, especially as part of a program of preparation for the final examination. These
quizzes are optional and for study purposes only. Quiz scores do not contribute to the course
grade, but the system will score your answers so you can check your performance as a diagnostic
tool. The system is forgiving; you get multiple tries at each quiz.
I have found that doing the quizzes steadily as you read text book chapters is a useful habit that
helps build student confidence and mastery.
Section 1 Quiz Enrollment Link
https://mybusinesscourse.com?code=1088-2602-6622
Section 2 Quiz Enrollment Link
https://mybusinesscourse.com?code=1088-2602-6623
ACADEMIC OFFENSES
Scholastic offenses are taken seriously and students are expected to read the appropriate
policies at:
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
Scholastic Discipline for Graduate Students:
http://www.uwo.ca/univsec/pdf/academic_policies/appeals/scholastic_discipline_grad.pdf
Graduate Student Academic Appeals:
http://www.uwo.ca/univsec/pdf/academic_policies/appeals/appealsgrad.pdf
CODE OF CONDUCT POLICIES
 Western Code of Student Conduct: http://www.uwo.ca/univsec/pdf/board/code.pdf
 Ivey Student Code of Professional Conduct located in the Student Handbook.
 Western Non-Discrimination/Harassment Policy:
https://www.uwo.ca/univsec/pdf/policies_procedures/section1/mapp135.pdf
 The Code of Behavior for Use of Computer Resources and Corporate Data:
https://www.uwo.ca/univsec/pdf/policies_procedures/section1/mapp113.pdf
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PLAGIARISM
Students must write their essays and assignments (at Ivey this includes case exams and
reports) in their own words. Whenever students take an idea, or a passage from another
author, they must acknowledge their debt both by using quotation marks where appropriate and
by proper referencing such as footnotes or citations. Plagiarism is a major academic offence.
All required papers (at Ivey this includes case exams and reports) may be subject to submission
for textual similarity review to the commercial plagiarism detection software under license to the
University for the detection of plagiarism. All papers submitted will be included as source
documents in the reference database for the purpose of detecting plagiarism of papers
subsequently submitted to the system. Use of the service is subject to the licensing agreement,
currently between Western University and Turnitin.com (www.turnitin.com).
PROHIBITED INFORMATION
Unless explicit instructions are received from your instructor to the contrary, your preparation must
be limited to the information provided by your instructor(s), plus your own experience and that of
your class peers. Class contributions should be based exclusively on your preparation and
discussions with members of your learning team or section classmates, and not augmented with
information obtained anywhere else. Information related to cases that have been obtained from
sources other than your instructor in paper, electronic or verbal form is not permitted to be used
for class contribution purposes. Such prohibited information includes, but is not limited to, the
following:
 Hand-outs, including follow-on ("B") cases
 Exam or report feedback (related to a particular case) for other students or provided in
other sections or years
 Notes, spreadsheets, etc. specific to cases (obtained before the case has been taught)
prepared by students in other sections or years
 Company information that is not provided in the case (and that is not derived from your
own experience)
 Teaching notes
If it is determined that such prohibited information is used in class discussions, such an incident
will be deemed to be a violation of Ivey's Student Code of Professional Conduct.
HEALTH AND WELLNESS SERVICES
As part of a successful graduate student experience at Western, we encourage students to make
their health and wellness a priority. Western provides several on campus health-related services
to help you achieve optimum health and engage in healthy living while pursuing your graduate
degree.
Students seeking help regarding mental health concerns are advised to speak to someone they
feel comfortable confiding in, such as a faculty member, the Faculty Program Director, or the MBA
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Program Services Director. Students who are in emotional and/or mental distress should also
refer to Mental Health@Western http://uwo.ca/health/mental_wellbeing for a complete list of
options about how to obtain help.
OFFICE HOURS/APPOINTMENTS
I am available to meet with you at a mutually convenient time. If you wish to meet, please see me
after class or e-mail my assistant or myself for an appointment. Please do not hesitate to set up
a meeting if you have any questions or issues you would like to discuss.
