UNIVERSITY OF CALIFORNIA, DAVIS GRADUATE SCHOOL OF MANAGEMENT Mgt 200 B Managerial Accounting Professor Michael W. Maher Office: 132 AOB IV Office hours: Before and after class 530-752-7034 [email protected] http://www.gsm.ucdavis.edu/Faculty/index.aspx?id=580 This course in financial management deals with generating and using information to increase an organization’s value. We emphasize management of financial resources and the use of financial information for management decision-making. Course materials Textbook: Chapters from Cost Management,4e available as a Primus publication. (Please bring your textbook to class.) Grading 1. Exams (90%). You will be graded based on your performance on the best three of the four exams given in the course. You may bring one page (one side, 8.5 x 11 inch sheet) of your notes to each of your exams. The page of notes may (and probably should) be different for each exam. 2. Written assignments to be turned in (10%). On the schedule below, you will see both homework problems and cases to be turned in. For example, for session 2, you will see “Work exercises 2.38, 2.44 and problem 2.57. Turn in solution to Case 2.76.” I want you to work exercises 2.38 and 2.44 and problems 2.57 on your own. They are assigned to reinforce key concepts from the text. You do not turn in 2.38, 2.44 and 2.57, but you can check your answers to them with the spreadsheet solutions that I have placed on SmartSite. These spreadsheet solutions are organized by chapter. I do want you to turn in your solution to Case 2.76 and be prepared to discuss it in class. (It would be a good idea to keep a copy of the case for the class discussion.) The cases that I want you to turn in are indicated on the assignment schedule below and are printed in italics. Cases turned in late are penalized 50%. A case is late if it is turned in after the beginning of class (except for the cases that are indicated to be worked in class—see Session 1, for example). If you use Excel to work your cases to be turned in, then please hand in a hard copy of assignments or embed the Excel spreadsheet in a Word document. (I require this because of formatting problems with Excel. Thank you.) Note that I have placed spreadsheet solutions to many problems in the book that I have not assigned. If you want to work more problems than assigned, check for problems with solutions on SmartSite. Those would be good extra practice problems. ASSIGNMENTS Detailed Topics and work in class I. Setting the Strategic Foundation A. Nature of managerial accounting Assignment* Session 1 PM B. Work Cases 1.42 and 1.45 in class and turn them in. Session 2 (July 18) AM C. Basics of cost flows through accounts Session 2 PM D. Product costing—jobs and batches Session Session 1 (June 27) AM Session 3 (Aug 1) AM Session 3 PM Session 4 (Aug 15) AM Fundamental cost and margin concepts II. Activity Based Costing and Management Exam # 1 over Chapters 1 through 3 and Sessions 1 and 2. A. Activity based costing B. Activity based management Read Ch. 1, Cost management and strategic decision making Read Ch. 2, Product costing systems; concepts and design issues Work exercises 2.38, 2.44 and problem 2.57. Turn in solution to Case 2.76. Read Ch. 3, Cost accumulation for job shop and batch production operations pp. 92101, and pp. 114-121. Work exercise 3.30 and problem 3.57. Turn in solution to Case 3.64. Activity-based costing will be discussed in class. Read Ch. 5, Activity-based management. Work problems 5.42 and 5.50. Turn in solution to Case 5.54. III. Financial Modeling and Decision Making Exam #2 over Chapters 1-3, 5 and 12 and Sessions 1-3. A. Financial modeling Read Ch. 12, Financial and CVP models, pp. 466-481. Work problems 12.46 and 12.50. Session 4 PM B. Decision making Read Ch. 13, Cost management and decision making Work problems 13.48, 13.50 and 13.59. C. Strategic issues in making investment decisions Read Ch. 14, Strategic issues in making investment decisions, pp. 560-569 and 587-589. (Skim the discounted cash flow section on pages 569 – 580 if you need to refresh your memory from Finance class.) Work exercises 14.55, 14.57 and 14.58. I shall hand out a comprehensive case study that we will work in class and you will turn in. This case study will cover Chapters 12, 13 and 14. IV. Planning, cost analysis and ethical issues Session 5 (Aug 29) AM Session 5 PM Exam #3 over Chapters 1-3, 5,12-14 and Sessions 1- 4. Read Ch. 15, Budgeting and financial planning A. Profit planning Work problem 15.47. B. Standard costing and variance analysis Read Ch. 16, Standard costing, variance analysis and Kaizen costing. Skip pages 678 and 679, which deal with journal entries. Work problems16.37. 16.41, 16.40 and 16.43. C. Ethical issues: Financial fraud Exam # 4 over the entire class *Only items in italics are to be handed in. The other problems are assigned to help you learn the material, but not to be handed in.