COURSE SYLLABUS
PART A
Semester: Fall 2014
Instructor: Charles Trainum
Class Info: ACC 212-F02
Phone: (540) 834-1921
Cell Phone: (540) 455-7768
NOTE: Please use e-mail (see below) as the best
way to communicate with the instructor. Use the
phone number only for emergencies.
Location/Room: Building SP2 Room 236
Office Location: FAC 2, Room 211
Days at Location: Monday through Thursday
Class Name: Principles of Accounting II
Office Hours:
Mondays 8:30 AM to 9:30 AM and 6:00 PM to 7:00
Class Days/Times: TuTh, 11:00 AM to 12:15 PM PM
Wednesdays 8:30 AM to 9:30 AM and 11:00 AM to
3:00 PM
Tuesdays and Thursdays: 8:30 AM to 9:30 AM and
2:00 PM to 3:00 PM
Class Credits: 3
Instructor E-mail: ctrainum@germanna.edu
Please indicate class section in the subject line of
all e-mails.
Course Description:
Introduces accounting principles with respect to cost and managerial accounting. Focuses on
the application of accounting information with respect to product costing, as well as its use
within the organization to provide direction and to judge performance. Lecture. 3 hours per
week.
Additional Course Description:
The second semester of the Principles of Accounting sequence will focus on the branch of
accounting known as managerial accounting. The student will gain an understanding of
managerial accounting principles including job order and process cost accounting, cost-volumeprofit analysis, budgeting, and managerial decision making.
NOTE: This section of ACC 212 is a pilot course built around revised Student Learning
Outcomes adopted by the Virginia Community College System (VCCS) that will take effect
state-wide in the Spring 2015 semester. Beginning in the Spring 2015 semester all students in
ACC 212 will have taken a version of ACC 211 (Principles of Accounting I) that includes
coverage of corporation accounting, long-term liabilities, the statement of cash flows, and
financial statement analysis. Some students taking this pilot course may not have been exposed
to those topics and consequently some of the early lectures in this course will cover these topics.
(See Appendix A: Tentative Course Schedule below.)
Textbook and Supplies:
Required:
Financial & Managerial Accounting, Volume 2, Chapters 13-24, Wild, 5th Edition with
Connect Plus and binder. McGraw-Hill. ISBN: 9781259374913. NOTE: This textbook
package has been specially packaged for Germanna Community College and is available
in this configuration only at the Germanna bookstore. It is highly recommended that this
bundled package be purchased since Connect, an online homework and study application,
will be used extensively in the course and students who do not purchase textbook editions
that are bundled with this Connect will be required to purchase Connect separately at
probably a substantially higher price. (See page 4 below for information on Connect.)
Other Resources and Material:
• Spreadsheet software (Microsoft Excel recommended)
• Word processing software (Microsoft Word recommended)
• Flash drive or other portable storage device (for saving classroom computer
work)
Learning Outcomes:
Having successfully completed Principles of Accounting II, the student will be able to:
1. Distinguish managerial accounting from financial accounting
2. Describe the various cost classifications.
3. Explain manufacturing in JIT environment.
4. Explain manufacturing costs.
5. Record the flow of manufacturing costs in job order and process cost accounting systems.
6. Calculate pre-determined overhead rates and over and under applied overhead.
7. Assign costs to cost pools
8. Calculate activity rates for cost pools.
9. Assign overhead to cost objects using activity rates
10. Estimate fixed and variable costs using appropriate methods.
11. Compute unit cost under both absorption and variable costing.
12. Reconcile income between variable and absorption costing methods.
13. Perform cost-volume-profit analysis.
14. Explain the significance of Operating Leverage
15. Prepare departmental and segmented income statements with allocated service
department costs where appropriate.
16. Evaluate investment center performance by computing the profit margin, investment
turnover, residual income, and rate of return on investment (ROI).
17. Describe the balanced scorecard approach.
18. Describe the budgeting process and the benefits it provides.
19. Prepare a master budget.
20. Prepare a flexible budget
21. Explain the use and development of standard costs.
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22. Calculate direct material, direct labor and manufacturing overhead variances
23. Describe relevant costs that are helpful in decision-making.
24. Prepare analyses of manufacturing decisions such as make or buy, special orders, sell or
process further, retain or eliminate a product or service.
25. Explain the Theory of Constraints in relationship to limited resources.
26. Evaluate capital investment proposals by using accounting rate of return, payback
method, net present value, internal rate of return and profitability index.
Additional Course Information:
This course in divided into three Units, each consisting of four to five chapters in the textbook (see
tentative class schedule below).
•
Unit One (Chapters 14-17) will include an introduction to the types of costs incurred by
businesses; and extensive coverage of accounting for manufacturing activities including
the job-order costing system and the process costing system, as well as the ABC or
activity based costing method for allocating production costs. There will also be an
extensive review at the beginning of Unit One of four areas normally covered in financial
accounting: long-term liabilities, corporation accounting, the statement of cash flows, and
financial statement analysis.
•
In Unit Two (Chapters 18-21) we will first study cost-volume-profit (CVP) analysis
including break-even and related types of analysis. This will be followed by a study of
variable costing and absorption costing and their effect on performance reporting. Finally
in Unit Two we will study budgeting, first through the preparation of a master budget and
then with the concept of the flexible budget. Standard costs will also be studied in this
segment.
•
Unit Three (Chapters 22-24) will begin with a look at responsibility accounting,
principally through the vehicle of departmental accounting including assessments of cost
centers, profit centers, and investment centers. The course concludes with a study of
decision making and the types of costs that are relevant to a variety of common
management decision scenarios and, in the final chapter, in making capital acquisition
decisions. Time permitting, case studies will be assigned to small groups within the class
that will put into practice the decision making tools previously studied.
A typical cycle for covering the course material in each chapter will consist of:
•
Two to four hours of classroom coverage of the material in each chapter including lectures
coupled with classroom discussion, question and answer sessions, demonstration
problems, classroom exercises, and similar instructional methods.
•
Homework assignments based on the material covered in each lecture. The first part of
each lecture period will be devoted to reviewing homework and, when applicable, quizzes.
•
For selected chapters a quiz on the material covered in the chapter, usually following the
completion of all lectures and homework assignments on the particular chapter.
•
Comprehensive tests will cover the materials in Units One and Two and a final exam will
focus on the material in Unit Three.
A research/writing project will be assigned approximately midway through the course. This will be
a group assignment requiring coordination between members of the group.
Page 3 of 9
A Note on Posting Grades: The instructor will post grades for all graded work in the
Blackboard gradebook which is accessible by students by clicking on the “My Grades” item in
the main course menu. A Grade Calculator is also posted under Instructor Resources in the main
course menu which students can use to calculate where they stand in terms of their earned grade
to date and to calculate the effect of hypothetical grades on their final grade for the course.
Grades for individual items will be posted according to the following schedule:
•
Quizzes – Grades on most quizzes will be available immediately upon submitting
the quiz. Feedback on incorrect answers will also be available after the due date for
the quiz.
•
Tests and Exams – Grades on the short answer (true/false, multiple choice) portion
of tests and exams will be available immediately upon submission as for quizzes.
The accounting problem portion of tests and exams requires detailed instructor
grading and feedback and will normally take approximately one week from the due
date of the test or exam
•
Homework – Most homework assignments using Connect (see below) will be
automatically graded by the Connect homework application and grades will appear
in individual gradebooks upon submission of the assignment. These numerical
grades will not be used directly in computing the overall homework grade for the
course but will be used as an indicator of the effort devoted to a particular
assignment. Homework assignments taken directly from the textbook (i.e., not
using the Connect application) will not be graded as such but will be reviewed by
the instructor from time to time for assessment of effort devoted. The overall
course grade for homework (which counts toward 10% of the final letter grade for
the course) will be based on the number of assignments completed and effort
displayed. Solutions to all homework problems will be available through Connect
and/or posted on Blackboard and students can check their own work against the
solutions. For non-Connect homework Blackboard will automatically post the
“Awaits Grading” symbol when an assignment is submitted and students should
check their individual gradebooks for this symbol to insure that their work has
been properly entered into the system. NOTE: Homework assignments submitted
past their posted due dates may, at the option of the instructor, be rejected or points
deducted for late submission.
Connect Online Homework and Study Application: The Connect online homework
and study application developed and maintained by the publisher of the course textbook,
McGraw-Hill Irwin, will be used extensively in this course, both for regular homework
assignments and for study assignments. All students will be required to purchase
access to the Connect service. A prepaid access card will be included with textbooks
purchased from the GCC Bookstore (ISBN: 9781259374913).
Attendance Policy:
The official GCC attendance policy is set out in full in Part B of the Syllabus (posted on
Blackboard). Following are the specific attendance, tardiness, and class participation policies for
this class:
• Based on the parameters of the official policy the permitted absences for this course
will be four (4). These “permitted” absences should be used only for illness,
emergencies or other situations that would prevent attendance since students are expected
Page 4 of 9
•
•
to attend all classes and to come to class on time and attendance will count toward 5% of
a student’s final letter grade in the course. The “permitted” absences specified above are
not meant to be “free” absences and missing class can impact on a student’s grade either
indirectly—because important instruction will be missed—or directly through a lower
than maximum grade in the attendance grading component.
Coming late to class is very disruptive and students should make every effort to arrive on
time. The instructor reserves the right to deny entrance to the classroom to students who
arrive late (or count such students as absent) and repeated late arrivals will have an effect
on the student’s attendance grade.
Class discussions and exercises will be an important part of the course and all students
are expected to participate and to answer questions when called upon. In-class
accounting exercises will be a regular feature of the course and present an opportunity for
students to do hands-on accounting work with the instructor present to assist and answer
questions. Excessive absences (i.e., more than the “permitted” absences set forth above)
or tardiness will result in a lower grade in this grading component and in extreme cases
will be grounds for dismissal from the course by the instructor.
Electronics (e.g. Cell Phones) /Food Classroom Policy:
During classes all students should adhere to the following rules:
• Students are expected to behave like college age adults. No excessive talking with other
students will be allowed during lectures.
• No food will be allowed in the classroom.
• All cell phones should be turned off (not just muted). No text-messaging, “tweeting,” or
other use of electronic communication or listening devices will be allowed.
• The computers provided in the classroom are to be used only for course purposes such as
viewing PowerPoint slides being discussed in the lecture or to work on classroom
exercises. Students will not be allowed to send, receive, or view e-mails, instant
messages or other forms of communication during class.
• Students may bring laptop computers to class but they may be used for the purposes
noted above for the classroom computers.
• The only permissible web sites to be accessed in class, unless otherwise directed, are
Blackboard, the GCC website, and the textbook publisher’s website.
Regular or egregious violation of these rules or other disruption of class activities can result
in a lower grade in the attendance/class participation grading category and/or expulsion from
the class session which will be marked as an absence for the day.
Grading Policy:
Students will be evaluated based on a combination of exams, quizzes, homework, research
project, and class attendance/participation. The grade achieved on each element will be weighted
according to the following table:
Units Tests (2 @ 20%)
Final Exam
Quizzes (average quiz grade)
Research/Writing Project
Homework
Attendance/Class Participation
Total
40%
20%
15%
10%
10%
5%
100%
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The weighted grades will be totaled to determine the final grade for the semester according to the
following grading scale:
90 – 100
80 – 89
70 – 79
60 – 69
Below 60
=
=
=
=
=
A
B
C
D
F
NOTE: Students who cannot take the Final Exam or complete other end-of-semester course
work (defined as quizzes and other work due on or after November 15, 2014) for legitimate
medical or other emergency reasons, and who desire to take the Final Exam or complete such
work and have it considered for grading purposes after the semester ends, must submit an
application to the Instructor to receive a grade of Incomplete (“I”) for the semester. This is the
student’s responsibility and the Instructor cannot initiate such an application or otherwise award
an Incomplete. Work not completed that was due before November, 2014, must be made up (if
make-up work is permitted) before the end of the semester and will not be considered as grounds
for awarding a grade of Incomplete.
Tentative Course Schedule:
See Appendix A
Part B of the Syllabus. Part B of the Syllabus is posted on Blackboard under Course Description in the
main course menu. Part B is an integral part of this Syllabus and contains important information
about Germanna policies that apply to this class.
THIS SYLLABUS IS SUBJECT TO CHANGE
Page 6 of 9
APPENDIX A
TENTATIVE COURSE SCHEDULE
Class
Sess.
Date
Chap.
No.
1
2
Aug 21
Aug 26
10*
3
Aug 28
11*
4
Sep 2
12*
5
Sep 4
13*
6
7
Sep 9
Sep 11
14
14
8
Sep 16
15-16
9
16
10
Sep 18
Sep 23
Sep 25
11
Sep 30
17
12
Oct 2
17
16
Lecture Material
UNIT ONE
Introduction to the course. Registration on Connect.
Long-term liabilities. Accounting for bonds: bond issue price, interest,
and redemption. Installment note payments and interest.
Corporate form of organization; common stock; dividends; preferred
stock; treasury stock
Basics of cash flow reporting; cash flows from operations; cash flows
from investing; cash flows from financing.
Financial statement analysis basics; ratio analysis.
Introduction to managerial accounting; managerial cost concepts;
Reporting manufacturing costs; manufacturing cost flows; predetermined
overhead rate.
Job order cost accounting; job order cost flows and application of factory
overhead. Process operations and comparison with job order cost
accounting systems
Process cost accounting;; equivalent units of production.
College Learning Day (no class)
Process costing illustration.
Activity-based costing; assigning overhead costs; applying activity-based
costing;
Applying activity-based costing; assessing activity-based costing.
Review Unit One.
*Available in Connect Plus e-book only.
Page 7 of 9
Quiz/Test
Schedule
Chapter 10-13 Quiz
posted
Chapter 10-13 Quiz due
Chapter 14 Quiz posted
Chapter 14 Quiz due
Chapter 15 Quiz posted
Chapter 15 Quiz due
Unit One Test Posted
Class
Sess.
Date
Chap.
No.
13
Oct 7
18
14
Oct 9
18
15
Oct 14
19
16
Oct 16
19
17
Oct 21
20
18
Oct 23
20
19
Oct 28
21
20
Oct 30
21
Lecture Material
UNIT TWO
Cost-profit-volume analysis: Identifying cost behavior; measuring cost
behavior using scatter diagram, high-low, and least-squares regression.
Cost-profit-volume analysis continued: Using break-even analysis;
contribution margin; computing break-even point, margin of safety, and
target income; sensitivity analysis; multi-product break-even point.
Variable costing and absorption costing: Computing unit cost;
performance reporting implications where units produced equals,
exceeds, or are less than units sold.
Variable costing and absorption costing continued: Performance
performance implications; converting income under variable costing to
absorption costing; comparing variable and absorption costing.
Master budgets: The budget process; budget administration;
components of a master budget; operating, capital expenditure, and
financial budgets.
Master budgets continued: Illustration of a master budget. Production
and manufacturing budgets.
Flexible budgets: Budgetary process; preparation of flexible budget;
“flexing” a budget; flexible budget performance reports.
Standard costs: Materials and labor standards; cost variance
computation and analysis; overhead standards and variances.
Page 8 of 9
Quiz/Test
Schedule
Unit One Test Due
Chapter 18 Quiz posted
Chapter 18 Quiz due
Chapter 19 Quiz posted
Chapter 19 Quiz due
Unit Two Test posted
Class
Sess.
Date
Chap
No.
21
Nov 4
22
22
Nov 6
22
23
Nov 11
22
24
Nov 13
23
25
Nov 18
23
26
Nov 20
24
27
Nov 25
24
28
Nov 2629
Dec 2
29
30
Dec 4
Dec 9
Dec 16
Lecture Material
UNIT THREE
Responsibility accounting: Departments and departmental evaluation;
controllable versus uncontrollable costs; cost centers. Profit center
reporting: direct and indirect expenses; allocation of indirect expenses.
Illustration of departmental income statement; departmental contribution
margin.
Investment center evaluation. Transfer pricing. Joint costs and their
allocation.
Relevant costing for managerial decisions. Managerial decision
scenarios: additional business; make or buy; scrap or rework.
Managerial decision scenarios continued: Sales mix selection; segment
elimination; keep or replace equipment; qualitative decision factors.
Theory of constraints.
Capital budgeting: Introduction; methods not using time value of money
(payback period and accounting rate of return).
Capital budgeting continued: Methods using time value of money (net
present value, internal rate of return).
Thanksgiving Holiday (no classes)
Case studies (in class group activity). Tentative depending on time
constraints.
Case studies (in class group activity)
Case study presentations (in class group activity)
Final Exam: 11:00 AM to 1:30 PM
Page 9 of 9
Quiz/Test
Schedule
Unit Two Test due
Chapter 22 Quiz posted
Chapter 22 Quiz due
Chapter 23 Quiz posted
Chapter 23 Quiz due