THE UNIVERSITY OF THE WEST INDIES, ST. AUGUSTINE
FACULTY OF SOCIAL SCIENCES
DEPARTMENT OF MANAGEMENT STUDIES
Semester 2 (2011-2012)
ACCT 3039 - ADVANCED MANAGEMENT ACCOUNTING (Case Analysis)
COURSE OUTLINE
No. of Credits: 3
Level: III
Pre- Requisites: ACCT 2021 – COST AND MANAGEMENT ACCOUNTING or
MGMT 2023 – FINANCIAL MANAGEMENT I
Co-Requisite: ACCT 3041 – ADVANCED ACCOUNTING
Course Description
The course integrates topics covered in previous accounting courses as well as related fields in
finance, managerial economics, quantitative analysis and M.I.S.
Course Rationale
The course objective is to allow students to develop and apply the concepts and analytical
techniques learned in this and previous accounting courses as well as to extend their knowledge
and to improve their communication skills.
The course also focuses on explicit recognition of the effects of uncertainty and multi period
strategies on the design of accounting systems and use of accounting information aimed at
encouraging behaviour in congruence with the organization goals.
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Course Calendar/Content
Topic
Profit Planning & Decision Making
C.V.P. Analysis
Performance Measures
Transfer Pricing
Budgeting – Behavioural approach.
The Management Accountant and
Human Behaviour
Assignment
Schedule
(M&J) Chap. 9
(A&H) Chap. 26
(KPR) Chap. 10
K Chap. 5
GN Chap. 13
(K) Chap. 1
(KPR) 8th Ed
(M&A) Chap. 4
(K) Chap. 10
(KPR) Chap. 14
Test Bank HFD
Chap. 23
(K) Chap. 9
(GN) Chap. 12
(KPR) Chap. 13
[MS25H Notes]
Test Bank HFD
Chap. 22
(K) Chap. 14
Handout
Why you should consider
ABC/ABM
Assigning Service Centre Costs
(K) Chaps. 4,5
[MS25H Notes]
Horngren Chap. 13
(K) Chap. 3
Environmental Issues
Intellectual Capital
Emerging Management Practices
Variance Analysis, Reporting and
expectation
(KPR) Chap. 11
Handout
(KPR) Chap. 19
(K) Chap. 9
(A&H) Chap.25
(M&A) Chap. 20
(KPR) Chap. 16
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Assignment – Questions/Cases
P9-1 to P9-12
Case 12-1
P 38
P5-1
Class Problem 13-27
P 1-5
P 58 Chp. 13
P 4-61 to P4-69
Rapid Rail Experiment Case (to be
done in groups of 5)
P10-1, P10-2, P10-5
Cases 43,44,47,53,58
Class Problem 129 Pg. 1420 - 1421
Case Del Norte (pg. 486) P9-5
Case 12- A7
Cases 53,58,59
Class problem” Cool Air
Company” 13-43 to 13-45
Cases 14-9, 14-10
(HDF) Chap. 6, P6-39
Handout with questions
GN Chap. 9, 9-20, 9-22, 9-29
P 5-2 and Case “John Deere”
(P 135)
Case 13-35 (9th ed.)
P 3-2
Case 49
P 31,37,40,41,42
P 9-2
Case 25-1 (from 9th ed.)
Worksheet with problems 20-11 to
20-27,20-28, 20-30, 20-31, 20-33,
20-34
P 45-47
Measuring Quality
Investing to develop
Future Capabilities
Technology
Incentive and Compensation
Systems
Balanced Score Card
(K) Chap. 11
(KPR) Chap. 17
(HFD) Chap. 19
(K) Chap. 12
(KPR) Chap. 15
(K) Chap. 13
(KPR) Chap. 14
and (KPR) Chap.
10
(K) Chap. 8
(KPR) Chap. 14
Texas Instruments Case (pg. 582)
P 22,23,26,30,49,51
P 45-47
Wellington Tap Case: Pg. 627
Case 55
Analog Devices Case: Pg 714
Cases 34, 55, 59
Case 48 (Chap. 10)
Chadwick Inc. Case: Pg. 380
Case 51
Goals/Aims
i.
ii.
iii.
iv.
Accounting information is used by management for three (3) major purposes with the
emphasis on decision-making, planning, control and performance evaluation.
Product pricing, product costing and income determination
Decision-making: from everyday routine short-run decisions to long term policy
formation; and
Planning, control and performance evaluation of the various managers and functions
within the organizations.
Learning Outcomes
Identify short term decision making tools in case studies
Examine financial/non-financial measures to evaluate performance in an organization
Deal with ethical practices, environmental issues and corporate social responsibility
reporting
Describe the crucial role of behavioural aspects of budgeting and how an understanding
if its importance can contribute to a successful budgeting process
Perform variance analysis and let the students understand how managers can use
statistical models to interpret variances
Assignments
For each session of class students are assigned to prepare a problem or exercise and to write up
an analysis of a case. The problem or exercise is assigned to teach students certain tools and
technique, which are covered in reading material for that session or covered previously. This
assignment will not be collected and will not be graded however, understanding the assignment,
in most cases will help you with necessary tools to prepare the assigned case. If most of the class
members confront difficulties in solving such assignments, a limited amount of time may be
spent in class to discuss the problem or a partial solution may be handed out.
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For each class session students are assigned a case to be prepared and written up individually or
in groups (see detailed class assignments) and be handed in before the start of each class. The
case write-up may be individual or in groups (see detailed class assignment), about five pages
and typed. Course materials include a reading (lesson 2) on “The Case Method Teaching
Environment: Preparing Analyzing and Presentation of Cases”, make sure you read it very
carefully. The Individual Case write-ups will be prepared by each student, individually, using the
same format and limitation applicable to group write-ups. This is to provide you with an
opportunity to analyze cases by yourself, before you write your final exam.
Group Case
Write-ups will be at least one per study group per class, with the same limitations described
earlier. Before the group write-up you have to meet and discuss the case (for details see reading
on case methods teaching environments).
Evaluation
Your final grade will be based on the following:
Participation
Class Work, Case Assignment and Presentation
Mid-term Exam
Final Exam (2 hours)
5%
10%
25%
60%
100%
N.B.
Individual assignments must be handed in as assigned and will be handled similarly to group
assignments; with the exception being grades will be individually assigned.
Teaching Strategies
There will be two (2) sessions per week for two (2) hours each. A combination of text and course
materials is used. Students must prepare the assigned text and case material before the relevant
classroom session. The case method places emphasis on the preparation for, and classroom
discussion of a situation that is described in the case. This teaching method can be contrasted
with the textbook/problem method, in which the emphasis is on memorizing and understanding
materials contained in a text and working out the numerical solution to problems and exercises.
There is seldom a “correct” solution to a case. However, cases are as close as one can come to
business realities in the classroom. In summary, case approach teaches students “how to think”
and “how to put issues in perspective” rather than answer to specific problems and issues.
In preparing a case for class discussion, the student must decide what the issues are, making
appropriate numerical calculations, identify and assess the strength of the arguments bearing on
the issues, and reach conclusion. Students will meet before class in small groups (these groups to
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be formed in the first class session) to develop this analysis and prepare the written assignment.
In class students must explain their position, defend it, appreciate and evaluate the statements
made by their colleagues and modify their own position if they are convinced that this is the right
thing to do. A significant and valuable portion of the learning process is through student
interaction. In the case method, the focus is on students learning through their co-operative
efforts, rather than on the instructor conveying his views.
A few words of caution, it is difficult to teach a case method course if it is the only such course
that the student has taken. For best results, students must develop a certain attitude toward the
analysis and discussion of cases, and the learning process is aided if this attitude is reinforced by
their experience with cases in more than one course. A “lone” case course can be taught but the
students and the instructor have a more difficult job because they need to create the necessary
attitudes and atmospheres.
Students, particularly those who have not been exposed previously to the case method, tend to
feel frustrated. They want “the word”. They think that somewhere there exists a set of rules,
which, if carefully memorised and followed, will lead them to the correct solution. They tend to
be unhappy with the variety of terms used by different companies for the same thing and by the
general complexity and lack of recognizable patterns in cases. Cases are messy and disorderly.
The feeling of frustration arises especially in the area of accounting. Students who have taken the
elementary course in accounting taught by the textbook/problem approach often come away with
the impression that there is a well-defined body of principles to which there are relatively few
exceptions. When they subsequently start a course that uses cases, they need time to get over this
incorrect notion.
Resources
Required
R.S. Kaplan & A. Atkinson Advanced Management Accounting 3rd edition, Prentice Hall (K)
R.N. Anthony, Hawkins & Merchant Accounting Text and Cases 12th Ed, McGraw Hill, 2007
(A& H)
Reading
Moriarty, Shane; Allen Carl, Cost Accounting, 3rd edition, John Wiley (M&A)
Moore & Jaedicke, Managerial Accounting, 5th edition South Western Pub. Co. (M&J)
Kinney, Prather-Kinsey, Raiborn, Cost Accounting: Foundations and Evolutions, 7th
edition, West Pub Co. 2008 (KPR)
Horngren, Foster, Datar J. Cost Accounting: A Managerial Emphasis, 13th ed., Prentice
Hall 2008 (HFD)
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Garrison, Ray H; Noreen, Eric W. Managerial Accounting, 13th ed., Pub. Mc Graw Hill,
Irwin. 2008 (G.N)
Suggested Additional Reading
Articles that may add to the student’s exposure to non-textbook accounting topics and issues.
Some of these reading are provided below.
1. Why you should consider Activity-Based costing by Robert Gruber: Small Business
Forum Journal, Spring, 1994
2. Campbell, Ian J. Budgeting: Is it a Technical or Behavioural Process. Management
Accounting Magazine, February 1985
3. Albright, Thomas L. And Harold P. Roth, “The Measurement of Quality Costs. An
Alternative Paradigm. See readings on Management Accounting by Ibrahim M. Aly
(1995)
4. Hope & Frazer (20010, “Figures of Hate”, Financial Management, February: 22-25
5. Marr, Bernard (2008). Disclosing the Invisible: Publishing Intellectual Capital
Statements. CMA Management Magazine Aug/Sept 2008 pgs 35-39
Additional Information
UNIVERSITY ACADEMIC INTEGRITY POLICY/EXAMINATION REGULATIONS
Please consult Section V (especially sub section B which deals with cheating) of the
University of the West Indies, Examination Regulations for First Degrees, Diplomas and
Certificates for details of this policy.
General Examination Regulations 19 – Absent from lectures and tutorials
Code of Conduct During Class
The following guidelines facilitate the creation and maintenance of an effective learning
environment. All students are expected to adhere to the guidelines throughout the semester.
Switch off all cellular phones and beepers before the start of each class session
Be civil at all times. We can disagree without being disagreeable
Read all assigned materials and attempt all assigned problems before the start of each
class
Participate in class discussions. Question on the subject matter are welcomed at any tome
Deadlines are firm! Plan to meet them
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Grading System
Grade A+
A
AB+
B
BC+
C
CD+
D
F
Mark 86 + 70-85 67-69 63-66 60-62 57-59 53-56 50-52 47-49 43-46 40-42 < 40
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