ACCOUNTING 372 (ACCT 372)
Internal Reporting Issues
Spring 2006, Session 442
March 7, 2006 – May 10, 2006
Professor:
Tatiana Sandino
Office:
Telephone:
Leventhal School of Accounting, Room 232C
213 740 4842
Email:
sandino@marshall.usc.edu
Class Hours:
Section 14050D, T/TH 8:00-9:50a.m., HOH 304
Section 14051D, T/TH 10:00-11:50a.m., HOH 304
Section 14052D, T/TH 2:00-3:50p.m., ACC 310
Office Hours:
Office Hours: Tatiana Sandino- T 4:00-6:00p.m. or by appointment
Teaching Assistants- F 9:00-11:00a.m., office 230A (LSOA)
Contact Information of Teaching Assistants:
1. Mingying Zhang: mingyinz@usc.edu
2. Tsz Shing Cheong: tcheong@usc.edu
Emergencies:
In case of campus-wide emergencies, USC wants you to know:
USC Emergencies: 213-740-4321
USC Emergency Information Line: 213-740-9233
USC Information Line: 213-740-2311
KUSC Radio at 91.5 FM
Prerequisites:
BUAD 250b or BUAD 305
Co-requisites:
None
Disabilities:
Any student requesting academic accommodation 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 the letter is delivered to me as early in the
semester as possible. DSP is located in STU 301 and is open 8:30am5:00pm, Monday through Friday. The phone number of DSP is 213-7400776.
Honor Code:
The Student Honor Code took effect on September 1, 1993. All students are
subject to the Leventhal School of Accounting Student Honor Code and are
responsible for familiarizing themselves with the Code. If needed, copies may
be obtained from Andrea Torres in ACC-103.
1. Course Description and Objectives
This course focuses on problems and issues related to the collection, reporting, and analysis of
managerial accounting information for decision making. The focus of the course is on
managerial and cost accounting issues.
The primary objectives of the course are as follows:
 Reinforce skills in reporting and analyzing managerial accounting information;
 Develop experience in analyzing this information from the perspective of its various users,
especially company management.
 Develop the ability to identify and communicate relevant managerial accounting information;
 Develop an appreciation of the usefulness and limitations of managerial accounting
information;
2. Course Materials
Required course materials:
 Course packet available at the USC Bookstore (the date will be announced on the first
day of class)
Recommended textbook:
 Horngren, Charles T.; Datar, Srikant M. and George Foster. 2005. Cost Accounting: A
Managerial Emphasis. 12th Edition. Upper Saddle River, NJ: Prentice Hall.
3. Grading
Mid Term Examination
Final Examination
Group Project
Homework
Participation and quizzes
Total Points
25
35
15
10
15
100
Grades will be assigned based on a curve relative to the Leventhal School of Accounting grading
standards. The target GPA for this course is 3.15. General descriptions on how the components
of your grade are determined are given below.
Returned paperwork, unclaimed by a student, will be discarded one month after the end of the
semester. Paperwork that is not returned to students will be retained for one additional semester
following the student's receipt of a letter grade, or C/NC, or P/NP.
Exams
The course includes a midterm and a final exam. The dates for these exams are as follows:
Midterm Exam: Friday April 7, 12:00-1:45p.m.
Final Exam: Wednesday May 10, 11:00a.m.-1:00p.m.
The exams will cover all the material covered in class. You are required to take the exams at the
times scheduled. Only documented illness or emergencies beyond your control will be accepted
as excuse.
Group Project
Teams should be composed by six members. You will choose your own teammates and will let
me know your group composition on the first day of class.
Each team will turn in a written assignment on the last day of class. The assignment should not
exceed 10 pages, double spaced, including exhibits and additional figures. No late work will be
accepted.
Instructions for the project will be provided in class (and posted in Blackboard).
Homework
You are expected to prepare all homework assigned. Homework will be collected in class (at the
section you are registered in) on the day it is due. If for any reason you cannot attend (please see
attendance requirement below), you can email your homework before class. No late homework
will be accepted.
Participation and Quizzes
Attendance in class is expected. Students will be required to sign in and display their namecards prominently every day. After the second session, I expect students to keep the same seat
every class, so that they can be easily identified for participation purposes. Both the quality and
the quantity of your class participation will be taken into account.
I will give pop-quizzes at the beginning of the classes when the cases are due on an unannounced
basis, verifying your preparation of the cases. Any student can be “cold called” at any time in
class. Case discussion will provide you with an excellent opportunity to earn credit for
participation.
If for some major reason you cannot attend class, let me know in advance. Only documented
illness or emergencies beyond your control will be accepted as an excuse.
4. Class Schedule
Date
Topic
Materials
Assignment
PART I: COST ACCOUNTING
Tuesday,
March 7
 Course Introduction
 Cost Concepts
Recommended: Horngren,
Datar, Foster : Ch.2
Thursday,
March 9
 Cost Behavior
- Breakeven
- Cost-Volume-Profit Analysis
Recommended: Horngren,
Datar, Foster: Ch. 3
Tuesday,
March 21
 Cost Behavior
 Allocation of Indirect Costs
HW 1 due
Thursday,
March 23

Course Packet : “Account.
for Indirect Costs”
Recommended:
Horngren, Datar, Foster:
Ch. 3, 4
Required:
Course Packet : “Seligram”
and “Accounting for
Indirect Costs”
Recommended:
Horngren, Datar, Foster:
Ch. 4, 5
Tuesday,
March 28
 Activity Based Costing, Excess
Capacity, and Activity Based
Management
- Wilkerson Company Case
- Advantages and
Disadvantages of ABC/ABM
Required:
Course Packet :
“Wilkerson Company”
Recommended:
Horngren, Datar, Foster:
Ch. 5
Prepare Case
2 for
discussion:
Wilkerson
Thursday,
March 30
 Ethics in the allocation process
 Contemporary costing methods:
Time Driven ABC, Target Costing,
Theory of Constraints, etc.
Required:
Course Packet :
“When and why to
measure costs less
accurately to improve
decision making”
Allocation of Indirect Costs
- Seligram Case
- Introduction to Activity Based
Costing
Prepare Case
1 for
discussion:
Seligram
Date
Topic
Materials
Assignment
PART II: MANAGEMENT CONTROL
Tuesday,
April 4
Thursday,
April 6
Friday,
April 7
Tuesday,
April 11
Thursday,
April 13
Tuesday,
April 18
Thursday,
April 20
 Strategy and Controls
- Responsibility centers
- Budgeting
- Performance evaluation
 Transfer Pricing
 Transfer Pricing
- Birch Paper
Recommended:
Horngren, Datar, Foster:
Ch. 22
Required:
Course Packet : “Birch
Paper Company”
Recommended:
Horngren, Datar, Foster:
Ch. 22
Prepare Case 3
for discussion:
Birch Paper
Company
MIDTERM EXAM
Time: 12:00-1:45pm
Room: HOH EDI
 Budgeting
- Master Budget
- Variance Analysis
 Performance Measurement and
Control Systems
- Use of financial and nonfinancial measures
- Balanced Scorecard
- Compensation and Incentives
Same as Apr 13
Recommended:
Horngren, Datar, Foster:
Ch. 6, 7
Required:
Course Packet:
-“Having Trouble / Your
Strategy? Then Map It!”
Recommended:
Horngren, Datar, Foster:
Ch. 13, Ch. 23
Same as Apr 13
 Performance Evaluation
- Ferreterias de Mexico
- Performance-based
compensation
Required:
Course Packet:
-“Ferreterias de Mexico”
Tuesday,
April 25
 Performance Evaluation
- Store 24
Required:
Course Packet:
-“Store 24”
Recommended:
Horngren, Foster and
Datar: Ch. 13, Ch. 23
Tuesday,
April 27
Wednesday,
May 10
 TBA
FINAL EXAM
Time: -11am-1pm
Room: TBA
HW 2 due
-Prepare Case 4
for discussion:
Ferreterias de
Mexico
- HW 3 due
- Prepare Case
5 for
discussion:
Store 24
- Group
projects
Group projects