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ACCT 345 – Cost Accounting and Strategic Cost Management
FALL 2008
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Instructor:
Office:
Telephone:
E-mail:
Fax:
Office Hours:
Class Meets:
Dr. Augustine Duru, CPA CMA
Room 9 (KSB)
(202) 885-1937
aduru@american.edu
(202)-885-1992
Tuesdays and Fridays 12.30 - 3.30 pm;
and by appointment
Tuesdays and Fridays 3:35 – 4: 50 pm
Course Description and Objectives
To achieve an understanding and reasonable mastery of the principles, concepts, and techniques of cost
measurement, cost management and modern management control systems used in practice. This course is designed
to be useful particularly for those who aspire to be accountants, managers, management consultants, financial
specialists (e.g. controllers, financial analysts), or human resource specialists (e.g. compensation specialists).
A major objective of this course is to provide the student with a basic understanding of cost management
concepts. Cost management embraces the notion that all costs can and should be managed to meet organizational
goals. Additionally, the course will cover principles of modern management control systems (MMCS). MMCS
recognizes that the modern organizational architecture of the firm rests on three legs – the interrelated control
systems, (a) performance measurement, (b) reward system and (c) allocation of decision rights.
In summary, ACCT 345 will not only reinforce the concepts learnt in ACCT 241 and cover topics for the
CPA and CMA exams, it will also help prepare the next generation of financial managers and consultants.
Prerequisite: ACCT 241: Success in ACCT 345 depends crucially on the mastery of the principles and
concepts in ACCT 241!
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Course Materials
(1)
Primary Text:
(2)
(3)
Supplementary Materials:
Cost Accounting: A Managerial Emphasis, Thirteenth edition.
by Horngren/Datar/Rajan/Ittner/Foster – (Required)
Student’s Solution book to Cost Accounting: A Managerial Emphasis,
thirteenth edition. by Horngren/Datar/Rajan/Ittner/Foster (optional).
Chemical Bank Case (HBS) – (Required)
Management Accounting, Strategic Finance AND Selected Readings
Course Requirements and Student Responsibilities
Homework and Class Sessions
A schedule of assignments for the semester is attached. The assignment for each class meeting consists of
homework problems and some reading from the text. If you read each chapter in the text before we discuss it, the
class sessions will be much more interesting and worthwhile for everyone. Emphasis will be placed on the
important aspects of each chapter and relatively more time spent on the difficult parts. Students are requested to
bring their texts to class each session. Lectures and discussions will frequently be centered around displays and
problems from the text.
As most of you already know, doing homework is essential to learning accounting. The homework
assigned represents the minimum number of problems that you should be doing outside of class. If you do not
work the assignments in a timely manner, your chance of success in this course is slim. As noted below the new
MyAccountingLab feature which comes with the textbook will be very useful and helpful.
Group Project Assignments
Two group project assignments will be part of the requirement for ACCT 345.
(1) ABC/ABM project
(2) BSC Case – The Chemical Bank case.
Teams of 2-3 students will be formed for the ABC/ABM project and 2 students for the BSC case. Both projects
will be conducted in a professional manner and should be presented in a form that would be suitable for
submission to a client or a potential customer. Separate handouts will be available on the BLACKBOARD about
the projects.
****OPTIONAL EXTRA CREDIT: BSC HBR ARTICLE ANALYSIS
Extra credit project is available for students who would want to earn extra points towards the overall grade. This
project entails analyzing a HBR article on BSC (at least 3 type-written pages). Depending on the quality of the
analysis, students can earn between 0 and 2 points to the final exam grade if the analysis is submitted in class on
or before NOVEMBER 7. Any paper submitted after 3:45 pm on NOVEMBER 7 will earn a grade of zero.
Grading
Your grading weights are given below:
Exam I
15%
Exam Ⅱ
Final Exam (Cumulative)
ABC/ABM Project
BSC Case
Unannounced Quizzes (10)
Preparation and participation
15%
40%
10%
10%
5%
5%
100 %
===
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Basis for Course Grade
As indicated above, 75 percent of your final course grade will be based on the 3 exams and quizzes. The coverage
of each exam is as indicated on the last page. Please also note that class participation and group projects account
for 25% of the grade. This is to encourage active learning. Active learning enriches the learning environment and
causes lessons to sink deeper. To earn outstanding participation grade, the students should always be well prepared
and make frequent substantive contribution to class discussions. An unexcused failure to attend class on the day of
an exam or quiz will result in a grade of zero. There will be no make-up exams or quiz. You will be permitted to
have the grade on your final exam represent the missed exam and quizzes if your reason for missing an exam or
quiz is legitimate (as defined in the undergraduate catalog) and documented in writing.
The course grade will be assessed on the standard basis:
A = 93-100 ;
A- = 90-92;
B+ = 87-89;
C+= 77-78;
C = 70-76;
C- =68-69;
B = 80-86;
D = 60-67;
B- =78-79;
F = below 60.
Blackboard Site
I maintain a comprehensive blackboard site for this course. All students registered for the course are automatically
registered for the site. Students registering late for the course might have to call the AU Hotline 885-2550 to get
registered for the site. Power-point slides for MOST chapters, and solutions to all HW assignments from the textbook are posted on the blackboard site. Solutions to the extra problems will be presented in class. PLEASE NOTE
THAT THE EXTRA PROBLEMS ARE MORE IMPORTANT FOR THE EXAMS! You are encouraged to
attend class regularly. I also post class announcements on the Blackboard site. It is the student’s responsibility to
visit the site at least twice a week and download relevant materials that will be covered in class.
MyAccountingLab: for Horngren Cost Accounting 13e
MyAccountingLab is an online homework and assessment tool, designed to help students practice cost accounting
problems and concepts. Most importantly, it also serves as a tutorial experience for students.
Academic Integrity
Academic integrity is paramount in higher education and essential to effective teaching and learning. As a
professional school, the Kogod School of Business is committed to preparing our students and graduates to value
the notion of integrity. In fact, no issue at American University is more serious or addressed with greater severity
than a breech of academic integrity. Standards of academic conduct are governed by the University’s Academic
Integrity Code. By enrolling in the School and registering for this course, you acknowledge your familiarity with
the Code and pledge to abide by it. All suspected violations of the Code will be immediately referred to the Office
of the Dean. Disciplinary action, including failure for the course, suspension, or dismissal, may result. Additional
information about the Code (i.e. acceptable forms of collaboration, definitions of plagiarism, use of sources
including the Internet, and the adjudication process) can be found in a number of places including the University’s
Academic Regulations, Student Handbook, and website at <http://www.american.edu/academics/integrity>. If you
have any questions about academic integrity or standards of conduct in this course, please discuss them with your
instructor.
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TENTATIVE SCHEDULE
CHAPTER/TOPIC
DATE
HW ASSIGNMENTS
SECTION A: COST MEASUREMENT
August 26
Introduction – Submission of Pre-ACCT 345 QUIZ
CH 1: Accountant’s Role in the Organization
August 29
CH 2: An Introduction to Cost Terms
and Purposes
CH 4: Job Costing
September 2 & 5
CH 17: Process Costing
CH 9: Inventory Costing (pp. 294-308)
September 9 & 12
CH 5: ABC & ABM
September 16 & 19
CH 15: Allocation of Support Department Costs
(pp. 540-553)
CH 16: Cost Allocation:
Joint Products & Byproducts
September 23
Review for Exam I
September 26
Exam I
CH 2:17, 23, 27, Extra
Problems
CH 4: 16, 17; 18; 36; Extra
Problems
CH 17: 24; 25; Extra
Problems
CH 9: Extra Problems
CH 5: 17, 27, 28 33; Extra
Problems
(also study pp.160-162)
CH 15: 19; 22; Extra
CH 16: 18; 19; 27, Extra
Problems
SECTION B: COST BEHAVIOR & DECISION-MAKING
September 30
CH 10: Determining How Costs Behave
ABC/ABM PROJECT DUE
CH 10: 17, 18; 28, Extra.
October 3
CH 3: Cost-Volume-Profit Analysis
CH 3: 19; 20; 24; 25, Extra
October 7
CH 11: Decision-Making and
Relevant Information
CH 12: Pricing Decisions &
Cost Management
October 10
Review for Exam II
October 14
Exam II
4
CH 11: 16; 17; 23; 29; Extra
-Problems
CH 12: 18; 23
FALL BREAK (Take-Home Assignments on chapters 6 and 7 )
SECTION C: PLANNING, CONTROL, PERFORMANCE MEASUREMENT AND COMPENSATION
October 21 & 24
October 28 & 31 & Nov 4
CH 6: Master Budget and
Responsibility Accounting
CHs 7 & 8: Flexible Budgets, Variances
& Management Control I & II
CH 6: 16; 19; Extra-Problems
CH 7: 17; 18; 22; 35, Extra
-Problems
CH 8: 17; 19; 21; 22; 36,
Extra-Problems
November 7 & 11
CH 13: Balanced Score Card (BSC) - (Group Case) CH. 13: 16; 22,
Read pp. 462-474. Also see extra materials on BSC posted on the Blackboard.
Video Show
EXTRA CREDIT BSC HBR ARTICLE ANALYSIS due November 7
November 14
CH 22: Management Control Systems,
Transfer Pricing etc
CH 22: Extra
CH 23: Performance Measurement,
Compensation, and Multinational
Considerations
CH 23: 29; 34; 35; Extra
November 18
November 21 & 25
Summing up – Modern Management Control Systems/
GROUP CASE DUE (11/25)
December 2
Discussion of ABC/ABM and BSC class projects
Exam Review (cumulative)
December 12
(2:10 PM – 4:40 PM) FINAL EXAM (CUMULATIVE)
IMPORTANT DATES
8/26
9/2
9/26
9/30
10/14
11/7
11/25
12/12
PRE-ACCT 345 QUIZ
SUBMISSION OF GROUP LISTS
EXAM Ⅰ (IN-CLASS)
ABC GROUP CASE DUE
EXAM Ⅱ (IN-CLASS)
EXTRA CREDIT BSC HBR ARTICLE ANALYSIS DUE (OPTIONAL)
GROUP CASE DUE
FINAL EXAM (To be confirmed)
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