BENEDICTINE UNIVERSITY
Course Outline
ACCT 112
ACCOUNTING I I
Spring, 2007
Text: Financial and Managerial Accounting, 2005 edition,
Needles, Powers, and Crosson, Houghton Mifflin, 2005
Course Prerequisites: ACCT 111 -- Accounting I
Instructor: Jeffrey M. Madura (160 Scholl Hall)
B.A., University of Notre Dame
M.B.A., Northwestern University
C.P.A., State of Illinois
Office Hours: Announced in class, or see web page at
http://owl.ben.edu/faculty/jmadura/home.htm
e-mail: jmadura@ben.edu
Course Description: ACCT 112 is the second of two introductory accounting courses. Major topics:
The Managerial Perspective
Standard Costing
Cost Concepts and Allocation
Performance Management and Evalustion
Job Order Costing
Short-Run Decision Analysis
Process Costing
Pricing Decisions
Activity-Based Management
Capital Investment Analysis
Cost Behavior Analysis
Quality Management and Meaurement
Budgeting
Financial Performance Evaluation
Quizzes and Grades: There will be five quizzes, 100 points each, and at least five 20-point assignments.
Quiz 1
Chap. 15 - 17 Feb. 6
Grades are determined primarily on the basis of your
Quiz 2
Chap. 18 - 20 Feb. 27
percentage out of the total number of possible points.
Quiz 3
Chap. 21 - 23 Mar. 27
Class participation may also be a factor.
Quiz 4
Chap. 24 - 26 Apr. 17
(Schedule is subject to slight change, if necessary.)
Quiz 5
Chap. 27 - 28 Exam Week
Grade requirements: A--90%, B--80%, C--60%, D--50%.
It is the responsibility of any student who is unsure of the grading scale, course requirements, or anything else
in the course outline, to ask the instructor for clarification.
Note on Calculators: Success in this course requires quantitative analytical and computational skills. Use a
calculator to verify all text examples, all examples presented in class, and to work problems. Calculators are
permitted on quizzes. However, do try to cultivate your "number sense" by estimating all computational results
before using the calculator.
Recommended Problems: Working problems is the best (many say the only) way to learn accounting. If you
think you know the material in a chapter, try working a problem without looking back into the chapter. One or
more problems will be assigned for each chapter, to be worked before being discussed in class.
Honesty: The Benedictine University Academic Honesty Policy is considered required reading for all students
and faculty. It can be found at: http:/www.ben.edu/AHP.
Use of Class Time: Come to class prepared to discuss the material assigned, and to contribute to the solution of
the assigned problems.
Assignments: Assignments must be turned in during class on the day they are due. Assignments turned in after
this time but before the assignment is handed back may receive one-half credit. Assignments turned in after
the hand-back class can no longer be accepted for credit.
Attendance: Attendance may be taken occasionally and randomly. Frequent absences will be noticed, and they
will have an adverse impact on quiz performance and your final grade. Two or more absences on days when
quizzes are handed back may lower your grade by one letter grade.
Missed Quizzes: Make-up quizzes will be given only if a quiz was missed for a good and documented reason.
If a make-up is given. the quiz score will be reduced 20% in an effort to maintain some degree of fairness
to those to took the quiz at the proper time.
Disability Statement: If you have a documented learning, psychological, or physical disability, you may be
eligible for reasonable academic accommodations or services. To request accommodations or services,
please contact the Academic Resource Center, 249 Kindlon Hall. All students are expected to fulfill
essential course requirements. The University will not waive any essential skill or requirement of a course
or degree program.
Your constructive comments about any aspect of this course are always welcome.
COURSE PHILOSOPHY -- FINANCIAL AND MANAGERIAL ACCOUNTING
In an article in the Chronicle of Higher Education, Sharon Rubin, assistant dean at the University of Maryland,
states that all course syllabi, in addition to providing the basic information on texts, topics, schedule, etc., should
answer certain questions. The instructor of this course would like to share these questions with you, as well as
provide some answers.
1. WHY SHOULD A STUDENT WANT TO TAKE THIS COURSE?
The purpose of accounting is to provide financial information upon which decisions are based. To be an
effective decision-maker in business, or even for your own investment decisions, you must learn how to
analyze and interpret financial information. Such skills will improve your ability to adopt the questioning
attitude and independence of thought that are essential to leadership and success in any field.
2. WHAT IS THE RELEVANCE OF THIS COURSE TO THE DISCIPLINE?
Since this course is part of the curriculum in BU's undergraduate Economics and Business department, the
word "discipline" in this question is interpreted to mean "management." Management is the process of
guiding an organization to the fulfillment of its goals. For a business enterprise, one of the most important
goals is profitability because, without that, the firm may not be able to continue in existence. Non-profit
organizations also have financial objectives, usually a "balanced" budget, in which expenses are controlled so
that they do not exceed income.
Financial accounting provides information that assists external users in making decisions regarding the
organization whose financial statements are being studied. Is the company's stock a good investment? Are
the company's bonds good investments? Should credit be extended to this company when it buys our
product? Is the company likely to be financially stable enough to provide secure employment, or to be a
reliable supplier of parts we need to make our own product? Managerial accounting provides information to
management, enabling it to better guide the organization toward its goals. It also assists management in
taking corrective action when goals are not being achieved. This is an aspect of the managerial function of
"control," which is like the navigation function on a ship or aircraft--if the vehicle is off course, corrective action
is needed. In business, accounting can detect if the organization is off its financial course and, if so, it can
often identify what must be done to get things back on track.
3. HOW DOES THIS COURSE FIT INTO THE "GENERAL EDUCATION" PROGRAM?
There are different systems of mathematics, each with its own axioms and operations. There are different
systems of philosophy, each with its own concepts and principles. Languages (including computer
languages) and games (card games, checkers, chess, athletic games, etc.) are also well-defined systems
with strict rules and procedures. Your mental capacity can be enhanced by studying and learning how to
operate within these various systems--like mental aerobics.
Quite often, these systems present problems to be solved. Analysis of the problem is needed, followed by
some action directed toward a solution. This is the same kind of mental activity that is needed in
management--the recognition, analysis, and solution of problems.
Accounting, also, is a system with its own concepts, principles, and operations rules. The study of
accounting, therefore, can be very intellectually satisfying. You will learn how the system works and then
learn how to use it to accomplish various tasks. This has educational value in itself, in additional to the
importance of learning about accounting for business purposes.
4. WHAT ARE THE OBJECTIVES OF THE COURSE?
The most important objective is the development of your ability to learn this kind of material on your own, and
to continue learning more about the subject after the course is over. Continuous and independent learning is
an important activity of every successful person. In connection with the objective of independent learning,
the instructor will expect students to study and learn certain topics in the course without formal discussion
of them in class. Questions on these topics, of course, are always welcomed and encouraged.
With respect to specific objectives, they are: that students learn the terminology, theory, principles, and
computational procedures related to basic accounting; and the careful cultivation of the logical processes
involved. This will enable students to understand the subject and communicate its ideas using generallyaccepted terminology.
Another important objective is that students become aware of the limitations of accounting. This is
particularly important since most students in this course will be consumers rather than providers of
accounting information. It is important that decision-makers know how accounting information is generated,
so that they do not place more faith and reliance on the information than is warranted in light of its inherent
limitations.
5. WHAT MUST STUDENTS DO TO SUCCEED IN THIS COURSE?
Your activities in this course should include: reading and studying the textbook; attending class and taking
notes; rewriting, reviewing, and studying your notes; working the recommended problems in the text; asking
and answering questions in class; spending time just thinking about the procedures and their underlying
logic; forming a study group with other students to review notes on terminology and concepts, and to practice
problem-solving skills; and taking the quizzes.
These activities should help you to further develop your abilities to read, listen, record, and organize
important information; and to communicate, analyze, compute, and learn independently the subject matter of
accounting, as well as to understand how business works.
As with most courses, this course is organized with the most fundamental material coming first. In learning a
new language, or how to play a musical instrument, or any new set of skills, mastery of the basics is essential
to success later on. This subject matter is not like history, where, if you did not study 14th century France, it
probably did not affect your ability to learn about 17th century England. In accounting, failure to obtain a good
understanding of earlier material will adversely affect your ability to make sense out of what comes later. It is
therefore essential to build a solid foundation of fundamental knowledge early in the course in order to
support the more elaborate logical and computational structures involved later,
6. WHAT ARE THE PREREQUISITES FOR THE COURSE?
The primary (and perhaps the only) prerequisite is a logical mind. This course is computational, but it is not a
"math" course.
To do well, you must be a good reader, listener, and note-taker; you must be willing to learn many new terms
and concepts; you must spend time just thinking about the subject; and you must practice the computational
procedures.
7. WILL THE COURSE BE PRIMARILY DISCUSSIONS, LECTURES, OR GROUP WORK?
The course is primarily lecture, with frequent questioning by the instructor as a check on student
comprehension. A substantial portion of class time is spent working problems from the text. Students are
expected to ask appropriate questions whenever necessary.
8. OF WHAT IMPORTANCE IS CLASS PARTICIPATION?
In this course, class participation means frequently asking relevant questions and supplying answers (right or
wrong) to the instructor's questions as problems and examples are worked out and discussed. These
behaviors are evidence of active involvement with the material and will result in better learning and an
automatic positive effect on your grade. In grade border-line cases, a history of active participation will
enable the instructor to award the higher grade to the deserving student.
9. WILL STUDENTS BE GIVEN ALTERNATIVE WAYS TO ACHIEVE SUCCESS, BASED ON
DIFFERENT LEARNING STYLES?
Different learning styles do exist. Some prefer a deductive method (deriving specific knowledge from general
principles), while others tend to prefer an inductive method (deriving the generalities from examples). The
inductive learners may need to work a number of problems before seeing the patterns that are present. The
deductive learners may never need to work a problem--they will know instinctively what to do.
But the intended outcomes are the same for all--see number 4 above.
10. WHAT IS THE PURPOSE OF THE ASSIGNMENTS?
Problems from the text are suggested, for the purpose of providing practice in analyzing what must be done,
and in performing the required computations. Even though computer software is available for accounting,
students can gain insight into the logical structure of a sequence of computational steps if they go through
them several times by hand (i.e. using simple calculators).
11. WHAT WILL THE TESTS TEST? -- MEMORY? UNDERSTANDING? ABILITY TO SYNTHESIZE? TO
PRESENT EVIDENCE LOGICALLY? TO APPLY KNOWLEDGE IN A NEW CONTEXT?
The tests will test your ability to recognize and use terminology correctly, and they will test your understanding
of the logic, principles, and computations of accounting and business.
There is a place for memorization in learning. It is not a substitute for comprehension, but it is better than
getting something wrong on a quiz that you were expected to know. As with prayers among small children,
memorization is often a first step, eventually followed by understanding. But if the memorization (of
terminology or the debit/credit rules, for example) is not done, it is less likely that the comprehension will ever
occur.
12. WHY HAS THIS PARTICULAR TEXT BEEN CHOSEN?
The text used in this course is one of the most widely adopted for introductory accounting. It combines both
financial and managerial accounting in one book, which makes it unnecessary to purchase another textbook
for Accounting 112.
13. WHAT IS THE RELATIONSHIP BETWEEN KNOWLEDGE LEVEL AND GRADES?
Consider this hypothetical but realistic situation.
Knowledge
Percentage Grade
Course A
Course B
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
100%
81%
64%
49%
36%
25%
16%
9%
4%
1%
Course A might be like philosophy, history, or management, where reward is more-or-less proportional to
knowledge level. Course B might be like accounting, math, or other skills courses, where small
deficiencies in knowledge can have disastrous effects on results. Overstudying is the best strategy for
coping with this, with the dual payoffs of higher grades and, more importantly, greater knowledge.