ACCT 226
Introduction to Managerial Accounting
Fall 2013 – Section 001
Thursday 8:30AM – 9:45AM (Room 350)
Video
Instructor:
Janice H. Fergusson, CPA, MACC
Recitation
Leader:
Erin M. Hawkins, CPA
Office:
Room 301
Office
Hours:
Tuesday 10:00 – 11:00
Other times by appointment
E-mail:
Erin.Hawkins@grad.moore.sc.edu
Required
Materials:
Managerial Accounting, 14th edition, by Garrison, Noreen, and Brewer,
McGraw-Hill/Irwin, ISBN 9780077829308. This is a special edition looseleaf text with an online access code for Connect. This package is at a
discounted price and is only available at the three local bookstores
(Addams, SC Bookstore, and University Bookstore at Russell House).
The online access code for Connect (with or without ebook) may be purchased
separately from the publisher. A specific URL address has been created for your
section and will be provided in a separate document with your Connect
instructions.
Lecture Outlines printed from Blackboard. You should print these outlines
and use them as you view the lectures which are accessed through Blackboard.
Prerequisite ACCT 225 – Introduction to Financial Accounting or equivalent with a
Course(s):
grade of “C” or better.
Course Description:
This course builds on the fundamental concepts introduced in financial accounting
(ACCT 225) and examines a variety of tools and techniques used by managers for
planning, control, and decision-making.
Course Format:
The format of this course will consist of a combination of recorded lectures and live
problem-solving classes. You will be responsible for watching a 75-minute lecture video
accessed through Blackboard prior to attending a weekly 75-minute class. Quizzes will be
given on a regular basis to ensure that students are watching the recorded lecture videos and
preparing before class. During the class, the recitation leader will work problems, cover
supplemental material, and answer questions. Exams will be given during your regularly
scheduled class.
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Course Objective:
The main objective of this course is to provide students with the skills for applying
managerial accounting knowledge needed to effectively plan and control company operations
and make good business decisions. To achieve this objective, the course specifically covers
managerial accounting terminology, traditional and advanced product costing systems, cost
behavior analysis, budgeting, performance evaluation, pricing, capital investment, and
decision-making tools.
Learning Outcomes/Course Competencies:
(1) Students will demonstrate proficiency in the major accounting concepts underlying
the production of data supporting the product pricing decision by:
(a) identifying and giving examples of general cost classifications.
(b) analyzing the use of cost information for product pricing purposes.
(c) computing the three categories of inventories in the manufacturing process.
(d) using various allocation methods to assign overhead to products/processes.
(e) contrasting various cost accumulation models.
(2) Students will demonstrate proficiency in the major accounting and organizational
behavior concepts underlying operational control by:
(a) preparing various components of a master (static) budget and explaining why
organizations use static budgets as a planning and control device.
(b) preparing a flexible budget and explaining the use of flexible budgeting for cost
control purposes.
(c) demonstrating how standards are set and used for the dual purpose of cost control
and product pricing.
(d) computing standard cost variances and explaining their significance.
(3) Students will demonstrate proficiency in the major accounting concepts underlying the
development of data to support analysis used by firms in the decision-making process by:
(a) predicting and analyzing cost behavior patterns.
(b) computing contribution margin and illustrating its use in the decision-making process.
(c) performing break-even analysis and determining the level of sales needed to
achieve a desired target profit.
(d) computing the degree of operating leverage at a particular level of sales and
explaining how it can be used to predict changes in net operating income.
(e) differentiating the concepts of relevant costs, opportunity costs, and sunk costs in
the decision making environment.
(f) analyzing data in evaluating alternative project/product decisions
(adding/dropping product line or segment, make or buy decision, special orders).
(g) recognizing the concept of decentralization and computing ROI and residual
income to analyze performance of strategic business units.
(h) evaluating capital investment opportunities using three methods (payback, simple
rate of return, net present value) and identifying the strengths and weaknesses of
each method.
Embedded questions in quizzes, homework assignments, and periodic exams will be used
to measure achievement of the learning outcomes.
Class Attendance:
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You are expected to attend every class. The University attendance policy specifics if you
miss more than 10% of the scheduled classes, whether excused or unexcused, your course
grade will be dropped one letter grade.
You are also expected to arrive for class on time and stay for the entire class period. If
you must miss class, you are responsible for all assigned material plus everything covered
in class. It is your responsibility to get that information from a classmate or visit me
during my office hours.
Class Preparation and Attentiveness:
You are expected to prepare for class in advance – that means watching the video,
reading the chapter assignment, and preparing written solutions to the homework
assignments before coming to class.
You are expected to be attentive in class. Doing work for other classes, reading
newspapers, working puzzles, text messaging, sleeping in classes, etc…will not be
tolerated. You will be asked to leave the room for lack of attentiveness.
Blackboard:
I will provide information and course materials to you through Blackboard. It is your
responsibility to check your e-mail address on Blackboard and change it if it is not your
preferred e-mail address. To change your e-mail address, login to Blackboard and then
go to personal information.
Grading:
Your grade for the course will be computed as follows:
Exam One
Exam Two
Cumulative Final Exam
Homework
Quizzes
Exams:
25%
25%
25%
15%
10%
The three exams are scheduled as follows:
Exam 1:
Exam 2:
Final Exam:
Thursday, September 19 (Lectures 1-5)
Thursday, October 31 (Lectures 6-9)
Monday, December 16 (Lectures 1-14)
The final exam will be comprehensive, covering all the material covered during the semester.
Review sessions will be scheduled prior to each exam.
No makeup exams will be given and a missed exam will generally result in a grade of
zero. In the case of unforeseen emergencies, your final exam grade will be weighted for
the missed test. This exception is at the discretion of the instructor (not the student) and
will be granted only in the case of sincere emergencies, not for convenience. You are
responsible for contacting me in advance of the scheduled exam time if an emergency
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arises that will result in an absence from an exam. Appropriate documentation will be
required to support emergencies.
Calculators are permitted provided they are silent calculators with single-line display.
Programmable or graphing calculators, cell phones, and other electronic devices are not
allowed to be used on a quiz or exam under any circumstances. If your calculator does
not meet the above standards, you will not be allowed to use it and a substitute calculator
may not be available. Your instructor will not have extra calculators for quizzes, so you
should invest in a simple four-function calculator and bring it to each class if you want to
make sure that you have a calculator on quiz days.
During exams, all personal belongings except for writing utensils and a calculator must
be securely stored at the front of the room. We reserve the right to confiscate anything
that is not secured in a closed bag during the exam, including cell phones and other
electronic devices which must be powered off and stored during exams.
Homework:
There will be a total of 17 homework assignments submitted for grading in Connect.
The total points earned on your highest 16 homework assignments will be averaged and
used in computing your final course grade (in other words, your lowest homework score
will be dropped). These assignments will include one or more exercises/problems from
each lecture. The assignments are due no later than 11:30PM on the due date. You will
have unlimited attempts to complete each assignment, but the assignment will not be
available after 11:30PM on the due date, so schedule accordingly. Since you know at the
beginning of the semester when these assignments are due, there are no provisions for
making up a homework assignment. Specific instructions on completing these
assignments will be given in a separate handout.
Quizzes:
There will be a total of 10 quizzes during the semester. The total points earned on your
highest 8 quizzes will be averaged and used in computing your final course grade (in
other words, your lowest two quiz scores will be dropped). The purpose for dropping the
two lowest scores is to allow for illness, family emergencies, car trouble, etc.
Please Note: You must be present the day a quiz is given to earn the points. There are
no provisions for making up a quiz. If a quiz is given at the beginning of class and you
are late, you will not be given extra time to complete the quiz.
The grading scale will be:
A
B+
B
C+
C
D
F
89.5-100
86.5-89.49
79.5-86.49
76.5-79.49
69.5-76.49
59.5-69.49
Below 59.5
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The grading scale is set by the School of Accounting and your instructor will not be able
to make any changes in it. There will be no deviations from the grading scale. For
example, a student with a weighted average of 69.50 would receive a C, and a student
with a weighted average score of 69.49 would receive a D.
A grade of D+ is not awarded in this course. Any business major scoring a D or F must
retake the course.
Supplemental Instruction:
Supplemental Instruction (SI) is offered for this course and provides you with the
opportunity to attend study sessions per week. SI sessions for this course will be
facilitated by an undergraduate student who has taken this course and excelled in the
course material. During these weekly sessions, your SI leader will facilitate activities
that encourage you to practice, discuss, and ask questions about the most recent lecture
material. All SI sessions are held in the Student Success Center, Thomas Cooper Library.
Dates/times of SI sessions can be found at http://www.sa.sc.edu/supplementalinstruction/.
Students with Disabilities:
If you have a documented disability for which you need special arrangements, please
contact the Office of Student Disability Services, Phone 777-6142, TDD 777-6744, email
sasds@mailbox.sc.edu, or visit their office located in LeConte College, Room 112A.
Qualified students needing extra time during tests must provide their instructor with
documentation at the beginning of the semester. To be given extra time, a student must
take the test through disability services and must take it no later than the rest of the class.
Extra time cannot be given to any student in the classroom with the other students.
Please make your appointments with disability services following their rules.
USC Honor Code:
It is the responsibility of every student at the University of South Carolina Columbia to
adhere steadfastly to truthfulness and to avoid dishonesty, fraud, or deceit of any type in
connection with any academic program. Any student who violates this Honor Code or
who knowingly assists another to violate this Honor Code shall be subject to discipline.
This Honor Code is intended to prohibit all forms of academic dishonesty and should be
interpreted broadly to carry out that purpose. The following examples illustrate conduct
that violates this Honor Code, but this list is not intended to be an exhaustive compilation
of conduct prohibited by the Honor Code:
1. Giving or receiving unauthorized assistance, or attempting to give or receive such
assistance, in connection with the performance of any academic work.
2. Unauthorized use of materials or information of any type or the unauthorized use of
any electronic or mechanical device in connection with the completion of any
academic work.
3. Access to the contents of any test or examination or the purchase, sale, or theft of any
test or examination prior to its administration.
4. Use of another person’s work or ideas without proper acknowledgment of source.
5. Intentional misrepresentation by word or action of any situation of fact, or intentional
omission of material fact, so as to mislead any person in connection with any
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academic work (including, without limitation, the scheduling, completion,
performance, or submission of any such work).
6. Offering or giving any favor or thing of value for the purpose of influencing
improperly a grade or other evaluation of a student in an academic program.
7. Conduct intended to interfere with an instructor’s ability to evaluate accurately a
student’s competency or performance in an academic program.
Whenever a student is uncertain as to whether conduct would violate this Honor Code, it
is the responsibility of the student to seek clarification from the appropriate faculty
member or instructor of record prior to engaging in such conduct.
Suspected violations of the honor code will be reported to the Office of Academic
Integrity. Violations of the honor code will result in disciplinary measures.
Sanctions will be imposed to the fullest extent possible for any student who participates
in any act of academic dishonesty.
General Comments and Tips for Success:
 It is extremely important that you keep up in this course. If you fall behind, it is very
difficult to catch up! So plan now to work hard.

Come to class, participate, and ask questions. At a minimum, proper preparation for
class consists of watching the video, reading the assignment, and working the
homework assignments.

WORK the homework exercises/problems as many times as you need so you
UNDERSTAND the material. The exams are challenging and will differentiate
between those students who understand the material and those who do not.

If you find you are having trouble with the material, please recognize this fact and do
something about it as soon as possible. Experience has shown that those students
who seek help early and regularly attend SI sessions tend to be more successful in this
course.

There are no opportunities for extra credit in this class, so please do not ask for extra
credit at the end of the semester when you haven’t earned the grade that you want.
Begin working hard now for the grade that you want!

The skills that you learn in this course will help you tremendously in other business
courses and in the real world. You will be able to understand why something is done
instead of taking it for granted. You will be surprised at how much this course will
benefit you in the real world and in your other business courses.
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Course Outline – Fall 2013
Dates
8/22 (Th)
Lecture Topic/
Event
Lecture 1:
Introduction to Managerial
Accounting
Textbook
pages
p. 2
pp. 24-30
pp. 43-46
Homework
Assignments
E2-1, E2-2,
P2-24
Due 8/28 (W)
General Cost Classifications
8/28 (W)
8/29 (Th)
Last Day to
Drop/Add Class
Lecture 2:
Job-Order Costing – Part 1
Lecture 3:
Job-Order Costing – Part 2
Schedules of Cost of Goods
Manufactured/Cost of
Goods Sold
9/5 (Th)
Graded
Homework
Assignments
GHA-1
(P2-22)
Lecture 4:
Process Costing
pp. 83-101
E3-1, E3-2,
E3-3, E3-4,
E3-11
GHA-2
(P3-19)
pp. 102-111
E3-6, E3-7
P3-23, 3-25
GHA-3
(P3-24)
E4-7, E4-11
P4-14
Due 9/4 (W)
GHA-4
(P4-13)
pp. 141-155
Due 9/11 (W)
9/12 (Th)
Lecture 5:
ABC Costing
pp. 272-300
E7-1, E7-3,
E7-4
GHA-5
(E7-12)
Due 9/18 (W)
9/19 (Th)
9/26 (Th)
Exam 1
(Lectures 1-5)
Lecture 6:
Cost Behavior
Variable vs. Absorption
Costing
pp. 29-43
pp. 229-252
E2-3, E2-4,
E2-5, E2-8
P2-15
GHA-6A
(P2-18)
E6-1, E6-2, E6-7
P6-18
GHA-6B
(P6-21)
Due 10/2 (W)
10/3 (Th)
10/10 (Th)
Lecture 7:
Cost-Volume-Profit
Analysis
pp. 183-210
Lecture 8:
Basic Framework of
Budgeting
Master Budget – Part 1
pp. 335-350
E5-4, E5-5,
E5-6, E5-16
P5-20, P5-21
E8-3, E8-4,
E8-5, E8-12
GHA-7
(P5-29)
Due 10/9 (W)
GHA-8
(P8-19)
Due 10/16 (W)
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Course Outline, continued:
Dates
10/11 (F)
10/17 (Th)
10/24 (Th)
Lecture Topic/
Event
Textbook
pages
Homework
Assignments
Graded
Homework
Assignments
Last Day to receive
a grade of “W”
Fall Break – No Classes
Lecture 9:
Master Budget – Part 2
pp. 350-361
E8-6, E8-7,
E8-8, E8-9
P8-21, P8-26
GHA-9
(P8-16)
Due 10/23 (W)
10/31 (Th)
11/7 (Th)
Exam 2
(Lectures 6-9)
Lecture 10:
Flexible Budgets and
Performance Analysis
pp. 383-399
E9-9, E9-10,
E9-11, E9-12,
E9-13
GHA-10
(E9-19)
Due 11/6 (W)
11/14 (Th)
11/21 (Th)
11/28 (Th)
12/5 (Th)
Lecture 11:
Standard Costing
pp. 418-443
pp. 454-460
Lecture 12:
Performance Measurement
in Decentralized
Organizations
pp. 472-482
Lecture 13:
Differential Analysis:
The Key to Decision
Making
pp. 527-543
E10-1, E10-2,
E10-3
P10-11
E10A-6
E11-1, E11-2,
E11-6, E11-7,
E11-9
P11-14
E12-2, E12-3,
E12-4, E12-10
GHA-11
(P10A-8)
Due 11/13 (W)
GHA-12
(P11-18)
GHA-13A
(E12-12)
GHA-13B
(E12-14)
Due 11/20 (W)
Thanksgiving Holiday No Classes
Lecture 14:
Capital Budgeting
pp. 579-587
pp. 590-605
E13-1, E13-7,
E13-14
P13-20, P13-21
GHA-14A
(P13-22)
GHA-14B
(E13-12)
Due 11/27 (W)
12/16
(Monday)
9:00AM
Final Exam
(Lectures 1-14)
Please Note: Your instructor reserves the right to adjust this schedule at any time. If you are
not in class on a day that a change may be made, it is your responsibility to find out the
changes from a classmate or visit me during my office hours.