Managerial Accounting - McCombs School of Business

ACC 381N
FALL 2014
Jim Albrecht, CPA
[email protected]
Managerial accounting focuses on how accounting and financial information is created and used
inside an organization to assist an enterprise in implementing its business strategies to achieve its
mission. Management accounting is a complement to financial statement analysis that tends to focus
on annual reports, 10-K filings and similar other financial reports that are used primarily outside an
enterprise by shareholders and the financial community when making decisions about investing in a
This course covers various aspects of how companies:
Create internal financial information.
Use this information as a component of strategic decision-making.
Use this information to measure success (or failure) relative to a plan.
This course also covers how assumptions made in the design of performance measurement and control
systems that use this financial information can sometimes distort analysis and introduce undesirable
bias that can compromise an organization’s mission.
We will use primarily case studies to illustrate various course concepts. We will supplement those cases
with specific problems presented in the textbook to provide a targeted look at more granular elements
relevant to the cases and the concepts we will cover.
Required Materials
Managerial Accounting: Creating Value in a Global Business Environment, Global 9th Edition, by Hilton
and Platt, 2013.
Course packet containing cases and other readings.
Course Components and Requirements
Cases – One or more cases are designated for review and discussion during class sessions to illustrate
and provide a basis for learning course concepts. Prior to each class, students should have read,
evaluated and be knowledgeable of the cases to be reviewed in class. While there is no written work
product to be submitted for the cases, the degree to which the student participates in this discussion and
analysis will evaluated by the instructor to determine the portion of the class participation grade
component earned by the student. Each student is expected to actively participate during class in the
discussion and analysis of each case in the context of course concepts. For case questions, refer to the
document posted on Blackboard/Assignments. Everyone should actively participate in the topic and case
discussions, providing summaries of issues, analyses, recommendations, as well as sharing personal
experiences related to the topic. I will cold call if necessary, but I much prefer a more voluntary giveand-take and I hope you will help to support that environment with your contributions. We also will work
some problems in class. For appropriate preparation, see the section on “Suggested Problems” below.
After each class, I will make class participation notes, with particular attention to quality of comments, not
Suggested Problems – As an adjunct to case facts and circumstances, problems in the textbook will be
recommended to direct your attention to certain concepts and to provide practice related to certain
accounting tools or techniques used in managerial accounting activities. While there may be a nonspecific, intuitive answer to the problems at a conceptual level, it is important for the student to “workthrough” the problem to a solution in order to gain experience with and develop an appreciation for the
dynamics of management accounting. These problems are not collected or graded. The solutions will be
reviewed in class or posted to Blackboard for your review.
Examination – A comprehensive, course examination is administered during the final class session. It
may include problems, essay questions, and/or short answer questions. The scope of the examination
is all concepts and subjects covered in this management accounting curriculum. This examination is the
only test for this course.
Course Grade
This curriculum is 50% of the total curriculum that, when combined with the financial statement
analysis curriculum, comprises a full course of record. Your grade for the course as a whole is a result
of an equally-weighted combination of your grades for each of managerial accounting and financial
statement analysis.
Your grade for this managerial accounting curriculum is comprised of the following components:
Class Participation
Final Exam
25% of total grade
75% of total grade
Consistent class attendance by all students is important to the success of the learning experience
and achieving the overall objectives of the course for all students both individually and collectively.
Missing class can have an immediate effect on the class participation portion of your grade. If you
miss three or more class sessions, your class participation grade will automatically default to zero.
Academic Dishonesty
Cheating is an insult to your fellow students and to this learning experience. I always report it, and I
go for the maximum penalty possible. Always. Don’t do it. You’ll feel bad even if you get away with
it, and really, this isn’t about the grade anyway, is it?
Official policy: The McCombs School of Business has no tolerance for acts of scholastic dishonesty.
The responsibilities of both students and faculty with regard to the Honor System have been
described to you by the Texas EMBA staff. These standards are essential not only to the
maintenance of the academic integrity of the program but also its brand equity, an important part of its
value to all graduates. You must clarify any points of confusion or uncertainty with the professor in
advance. For more information on scholastic dishonesty at the University of Texas at Austin, please
contact the professor or program staff, or visit
ACC 381N
Managerial Accounting
Class Schedule, Content and Assignments
Fall 2014
Class #1
Concept #1
Text Reading
Costs, Expenses and Margin
Chapter 1 and 2
Caribbean Internet Cafe
Class #2
Concept #2
Text Reading
Chapter 9
Hanson Ski
Codman & Shurtleff
Concept #3
Text Reading
Cost Assignment and Costing Models
Chapters 3 and 4
Seligram PTO
Class #3
Concept #4
Text Reading
Activity Based Costing
Chapter 5
Siemens EMW
Concept #5
Text Reading
Cost-Volume-Profit Analysis
Chapter 7
Bill French, Accountant
Class #4
Concept #6
Text Reading
Decision Making: Relevant Costs and Benefits
Chapter 14
Baldwin Bicycle
Concept #7
Text Reading
Investment Centers and Transfer Pricing
Chapter 13
Compagnie du Froid
Class #5
Concept #8
Text Reading
Standard Costing and Operational Performance Measures
Chapter 10
Citibank Performance Evaluation
Concept #9
Text Reading
Levers of Control
Simons “Control in the Age of Empowerment” (separate from textbook)
Automation Consulting