Stevens Institute of Technology Howe School of Technology Management Syllabus BT 215 Cost Accounting Fall 2009 Prof. William Stahlin Babbio 421 201 216 8022 wstahlin@stevens.edu Office Hours: Monday 1:15-2:15 Wednesday 1:15-2:15 Thursday 1:15-2:15 Other Hours by Appointment Overview This course deals with the methods and principles of managerial accounting. It is concerned with the use of accounting data by individuals within a business in order to enhance managerial decision-making and control. Topics covered include cost estimation and management, cost accounting systems, cost allocation, decision analysis, budgets, variances, and responsibility accounting. Additionally, the cash flow statement and financial statement analysis will be explored. Prerequisites: BT 115. Relationship of Course to Rest of Curriculum This course will help you understand and appreciate the role accounting plays in making informed management decisions. Cost volume profit and product costing decisions affect marketing and pricing decisions. Cash flow analysis is useful in finance. Budgeting will help you to prepare proforma financial statements for business plans. Learning Goals After successfully completing this course, the student will be able to: 1. Compute the ratios widely used in financial statement analysis and explain the significance of each 2. Prepare a statement of cash flows 3. Distinguish between product and period costs and prepare a cost of goods manufactured statement 4. Identify the three elements of manufacturing cost, compute overhead rates and allocate overhead 5. Prepare a process costing production report 6. Determine the sales volume to earn a desired level of operating income 7. Use incremental analysis in making such as special orders or outsourcing 8. Prepare a master budget and supporting schedules Pedagogy The course will employ lectures, class discussion, in-class individual assignments, and review of homework assignments. There will be approximately 5 quizzes (the lowest quiz will be dropped and there are no make ups for missed quizzes) and three exams. The third exam will be comprehensive. There are 2-3 homework problems in each chapter (highlighted in bold on the assignments schedule) that must be submitted through My Accounting Lab. In order to get credit for your homework you must score a 75% or higher. The other assigned problems are available through My Accounting Lab. Many students indicated they prefer to do all homework problems through My Accounting Lab. Solutions are available immediately once an answer is submitted. You can try problems repeatedly with different numbers as well. Required Texts Accounting, 7th edition, Horngren and Harrison; Pearson Prentice Hall, 2007 ISBN 0-13-243960-3 My Accounting Lab access code (Comes with the Horngren text) Merrill Lynch, How to Read a Financial Statement (emailed to you) Grading Requirements Assignment Homework, in-class participation, assignments and attendanceQuizzesExams (2) 20% each Comprehensive Final Total Grade Grade % 15%; 15%; 40% 30% 100% Ethical Conduct Stevens Honor System: Enrollment into the undergraduate class of Stevens signifies a student’s commitment to the Honor System. It is the responsibility of each student to become acquainted with and to uphold the ideals set forth in the Honor System Constitution. All students are reminded that, as a condition of being admitted to Stevens, they will uphold and adhere to the standards of the Stevens Honor System. Specific student responsibilities include: Maintaining honesty and fair play in all aspects of academic life at Stevens Writing and signing the pledge, in full, on all submitted academic work Reporting any suspected violations to an Honor Board member or to the Dean of Undergraduate Academics Cooperating with the Honor Board during investigations and hearings 2 BT 215 Course Schedule Assigned Problems in Bold are to Be Completed Using My Accounting Lab Chapter Title 16 Cash Flow Statements Class and Homework Assignments 16 – 3, 4, 5, 6, 7, 16, 17, 18, 20, 34, 35, 36 17. Financial Statement Analysis 17 - 1, 2, 3, 4, 5, 6, 7, 8, 13, 17, 25, 26, 27 18 Management Accounting: An Introduction 19 Job Order Cost Systems and Overhead Allocations 18 - 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 17, 19, 20, 21, 22, 23, 24, 27, 28 19 – 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 13, 14, 15, 17, 19, 20, 22, 25, 26 (1) Exam 1 Chapters 16, 17, 18, 19 Process Costing 20 – 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 19, 20, 23 21. Cost-Volume-Profit Analysis 21 - 1, 2, 3, 5, 6, 10, 13, 14, 17, 18, 20, 21, 22, 26 22. The Master Budget and Responsibility Accounting 22 - 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 18 23. Flexible Budgeting and 23 -3, 7, 8, 15, 17, 18, 20, 25, 28 (1, 4) 20. Standard Costs 25. Special Decisions 25 - 1, 2, 3, 4, 5, 6, 7, 15, 16, 17, 18, 20, 27, 28, 30 24. Activity Based Costing and 24 - 2, 3, 4, 5, 6, 7, 8, 9, 10, 13, 14, 15, 16, 17 Other Cost Management Tools Comprehensive Exam – All Chapters 3