TROY UNIVERSITY
SYLLABUS
SORRELL COLLEGE OF BUSINESS
ACT 6691
TJAA
Managerial Accounting
Spring 2013
Prerequisites The prerequisite for ACT6691 is graduate student standing. [Note: To achieve graduate student standing, students must complete all required business program and prerequisites as shown in the current catalog. To achieve graduate student standing in the accounting option, students must complete all required accounting prerequisites.]
Description A study of sources and classifications of accounting data, classification and behavior of revenues and costs, use of accounting data for profit planning and cost control, and use of accounting data for special analysis .
Purpose & Objectives To introduce the concepts of managerial accounting, explain the relationship between financial and managerial accounting, and introduce the use of accounting information for decision-making in organizations. On completion of the course, the student should be able to:
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Describe the contents and components of the balance sheet, income statement, and statement of cash flows and the relationships among these statements;
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Understand how business transactions affect financial accounting statements;
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Understand the basic operating characteristics and cost terms used by business organizations; identify and classify cost behaviors; understand the basic concepts associated with cost measurement; and understand how cost behavior and measurement are used in decision making in organizations;
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Understand the nature of the management control process and the use of accounting information in that process;
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Understand how accounting information is used in strategic planning, budgeting, and evaluation;
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Analyze and interpret accounting information for use in making planning and control decisions within organizations;
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Apply problem solving, critical thinking, and communication skills that are necessary for communicating accounting information;
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Use financial and managerial accounting information by identifying accounting problem requirements, identifying relevant information needed for problem solving, and adapting knowledge to problem situations;
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Critically analyze and discuss (oral and written) the book selected for the reading initiative for the current year — Good to Great by Jim Collins (see supplemental materials) and achieve the following outcomes:
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Explain how managerial accounting provides the brutal facts of an organization’s current reality that it must confront if it is to become a great organization. (See pages 13 and 79.)
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Explain how a culture of discipline reduces the need for controls and managerial accounting reports relative to the control function of management. (See page 13.)
Explain how managerial accounting can provide insight into how an organization can most effectively generate sustained cash flow and profitability. (See pages 95 and 96.)
Approved Texts Anthony, Robert N., David F. Hawkins and Kenneth A. Merchant;
Accounting: Text and Cases; 13e; McGraw-Hill. ISBN-13: 9780073379593.
Supplemental Materials Book for the common reading initiative: Good to Great —Why
Some Companies Make the Leap and Others Don’t , Jim Collins, Harper Business
(October 2001), ISBN-10: 0066620996; ISBN-13: 978-0066620992.
Mission & Vision Statements
Troy University Mission Statement Troy University is a public institution comprised of a network of campuses throughout Alabama and worldwide. International in scope, Troy
University provides a variety of educational programs at the undergraduate and graduate levels for a diverse student body in traditional, nontraditional and emerging electronic formats. Academic programs are supported by a variety of student services which promote the welfare of the individual student. Troy University's dedicated faculty and staff promote discovery and exploration of knowledge and its application to life-long success through effective teaching, service, creative partnerships, scholarship and research.
SCOB Mission Statement Through operations that span the State of Alabama, the
United States, and the world, Sorrell College of Business equips our students with the knowledge, skills, abilities and competencies to become organizational and community leaders who make a difference in the global village and global economy. Through this endeavor, we serve students, employers, faculty, and Troy University at large as well as the local and global communities.
SCOB Vision Statement Sorrell College of Business will be the first choice for higher business education students in their quest to succeed in a dynamic and global economy.
Sorrell College of Business will create the model for 21st century business education and community service.
School of Accountancy Mission Statement The mission of the School of
Accountancy is to advance the accounting profession by providing quality accounting education to both undergraduate and graduate students, publishing quality research and providing service to the professional community. We prepare students for successful careers with increasing professional and managerial responsibility in public accounting as well as government and industry and prepare undergraduate students for admission to graduate programs in accounting and business.
Instructor Stan Lewis, DBA, CPA, CFE, CCEA
Office Location & Hours 119 Bibb-Graves Hall. Weekly you may contact me in person during the following days and time periods: Term A: Tuesday – 10:30 am – 3:30 pm;
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and Wednesday 9:00 am - 4:00 pm; and Term B: Tuesday - 10:30 am - 2:30 pm;
Wednesday 9:00 am - 4:00 pm; and Thursday – 1:00 pm – 3:00 pm. I'm available by email at any time, or by telephone during my office hours (US CST/CDT).
Contact Information Telephone: 334-808-6164; 334-670-3136 (Administrative
Assistant Ms. Patsy Brown); and 334-670-3592 (FAX). Email: sxlewis@troy.edu
Class Location & Time Bibb Graves 222, 4:00 pm to 6:45pm W.
Exams There are three exams for the course. The dates are provided in the Course
Schedule section (see below). Each exam will be closed book/closed notes and will consist of multiple choice questions. You may use a calculator and/or an English translation dictionary during the exam. You may not talk to other students, look on other students exams and answer sheets, exchange information, etc. during the exam. A valid student ID or the equivalent must be available if requested by a proctor at each exam.
Assignments These are a combination of required and extra credit/bonus points Late submissions are not accepted for any reason. Each assignment should be prepared in a style consistent with that used in your undergraduate accounting and business courses and with expectations for documentation that are found in the professional workplace.
Cell Phone & Other Electronic Devices Use of any electronic devise by students in the instructional environment is prohibited unless explicitly approved on a case-by-case basis by the instructor of record or by the Office of Disability Services in collaboration with the instructor. Cellular phones, pagers, and other communication devices may be used for emergencies, however, but sending or receiving non-emergency messages is forbidden by the University. Particularly, use of a communication device to violate the
Troy University “Standards of Conduct” will result in appropriate disciplinary action (See the Oracle .)
In order to receive emergency messages from the University or family members, the call receipt indicator on devices must be in the vibration mode or other unobtrusive mode of indication. Students receiving calls that they believe to be emergency calls must answer quietly without disturbing the teaching environment. If the call is an emergency, they must move unobtrusively and quietly from the instructional area and notify the instructor as soon as reasonably possible. Students who are expecting an emergency call should inform the instructor before the start of the instructional period.”
Photo ID Required For each exam you must have available a student photo ID or the equivalent when requested by the instructor and/or proctor.
Grading Methods & Scale Exams- 75 points (75 percent) divided among the listed lecture/chapter-based exams. Assignments (which includes attendance, occasional extra assignments and class participation) – 25 points (25 percent). These assignment points are only recorded at the conclusion of the course. Bonus Points/Extra Credit –
Comes only from this one source. Your efforts are monitored throughout the course and bonus points/extra credit are assigned on that basis only at the end of the course. The course letter grade is based upon 100 points (100 percent) and the following grading scale is used: 90%-100% A; 80%- 89% B; 70%- 79% C; 60%- 69% D; and below
60% F.
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Class Procedure and Requirements The student will be expected to: (a) punctually attend all scheduled lectures (class periods). Students who arrive at class after the start of the lecture may be marked absent and (b) be penalized on the assignment portion of your course grade including the bonus points/extra credit component.
Americans With Disabilities Act (ADA) Any student whose disabilities fall within ADA must inform the instructor at the beginning of the term of any special needs or equipment necessary to accomplish the requirements for this course. Students who have or may be dealing with a disability or learning difficulty should speak with the instructor and contact the Office of Adaptive Needs Program at call 670-3221/3222. Various accommodations are available through the Adaptive Needs Program.
Attendance Policy Physical class meetings are part of this course; participation is expected and is integral to any bonus points available in the course. Attendance is checked daily.
Make-up Work Policy In general you do not make up exams or assignments. If there are exceptional circumstances such as a hospitalization, an exception may be made at the instructor’s discretion only. Assignments - These are submitted each class period.
If you are not in attendance you cannot submit assignments. Attendance and submissions are matched. A to complete the exam without your best effort will result in the average of your remaining exams being used as a replacement grade.
Failure to complete two of the three exams will result in an automatic course grade of F. There is no exception to these policies.
Incomplete Grade Policy Missing any part of the Course Schedule may prevent completion of the course. If circumstances will prevent the student from completing the course by the end of the term, the student should complete a request for an incomplete grade under the established university policy.
Cheating Policy If you are caught cheating, you will get a course grade of "F." See
Student Handbook for the definition and university policy on cheating. Plagiarism is a form of cheating as is copying another’s assignments.
Course Schedule
Week & Dates
Assignments
&
Chapters
Week 1
Jan 9
Activities & Assignments
See note that follows Course Schedule
Chapter 15: The Nature of Management Accounting
Assignment 1: Problems 15-1, 15-3, and 15-4. Due at beginning of class on Jan 16.
Week 2
Jan 16
Chapter 16: The Behavior of Costs
Assignment 2: Problems 16-2, 16-3. Due at beginning of class.
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Week 3
Jan 23
Week 4
Jan 30
Week 5
Feb 6
Week 6
Feb 13
Week 7
Feb 20
Week 8
Feb 27
Week 9
Mar 6
Week 10
Mar 20
Week 11
Mar 27
Week 12
Apr 3
Week 13
Apr 10
Lewis
Chapter 17: Full Costs and Their Uses
Assignment 3: Problems 17-1, 17-2, 17-3, and 17-4. Due at beginning of class.
Chapter 18: Additional Aspects of Product Costing Systems
Assignment 4: Problems 18-1, 18-2, 18-3 and 18-4. Due at beginning of class.
Exam 1: Chapters 15 - 18. Scantron form and pencil required.
Chapter 19: Standard Costs, Variable Costing Systems, Quality Costs, and Joint Costs
Assignment 5: Problems 19-1, 19-2 and 19-4. Due at beginning of class.
Chapter 20: Production Costs Variance Analysis
Assignment 6: Problems 20-1 and 20-2. Due at beginning of class.
Chapter 21: Other Variance Analysis
Assignment 7: Problems 21-1 and 21-3. Due at beginning of class.
Chapter 22: Control: The Management Control Environment
Assignment 8: Problems 22-1, 22-2, and 22-3. Due at beginning of class.
Exam 2: Chapters 19 - 22. Scantron form and pencil required.
Chapter 23: Control: The Management Control Process
Assignment 9: Problems 23-1, 23-2, 23-3, and 23-4. Due by beginning of class.
Chapter 24: Strategic Planning and Budgeting
Assignment 10: Problems 24-1, 24-2, and 24-3. Due by beginning of class.
Chapter 25: Reporting and Evaluation
Assignment 11: Problems 25-1, 25-2, and 25-3. Due by beginning of class.
Chapter 26: Short-Run Alternatives Choice Decisions
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Week 14
Apr 17
Week 15
Apr 24
Assignment 12: Problems 26-1, 26-2, and 26-3. Due by beginning of class.
Chapter 27: Longer-Run Decisions: Capital Budgeting
Assignment 13: Problems 27-1 and 27-3. Due by beginning of class.
Final Exam: Chapters 23 - 27. Scantron form and pencil required.
Note: The reading initiative book will be integrated into various topics as appropriate.
The following discussion questions will be discussed and integrated within the above topics:
Discussion Questions for
Good to Great: Why Some Companies Make the Leap . . . and Others Don’t
Chapter 1
1. Explain the methodology that Jim Collins used to determine which companies are great.
2. Explain why hiring the right people is vital to the success of an organization?
3. Explain why confronting the brutal facts is essential to the success of an organization and how the managerial accounting system can provide many of the brutal facts.
4. Explain why organizations with a culture of discipline need fewer managerial controls.
Chapter 2
1. Describe the importance of humility in being a great leader.
2. How important is humility in developing trust with subordinates?
3. What can managerial accounting do to help great leaders achieve great results?
Chapter 3
1. Why is hiring the right people in an organization and terminating the wrong people important for a company to become great?
2. How can a manager terminate people and still maintain trust with the people who remain with the organization?
3. Why do you think that the manner of executive compensation was not relevant to a company becoming great?
4. Why is mindlessly terminating people counter-productive to great company performance?
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Chapter 4
1. How can the managerial accounting system provide management with the brutal facts necessary to become a great company?
2. Why are having faith and a vision for the goal important to becoming a great company regardless of the brutal facts?
Chapter 5
1. Describe the Hedgehog Concept.
2. Explain how Walgreen’s had such high stock returns?
3. What kind of managerial accounting system would a company need to calculate profit per customer?
Chapter 6
1. What is the result of a culture of discipline and the spirit of entrepreneurship?
2. Will discipline alone result in a company being great? If not, what else must a company have?
3. How do companies that are pursuing greatness use the budgeting process?
Chapter 7
1. How to companies that are pursuing greatness think differently about technology?
2. What is the usual cause of mediocrity?
Chapter 8
1. How do great companies overcome the pressure from Wall Street for shortterm performance at the expense of the long-run interest of the company?
2. How do managerial accounting systems contribute toward a compan y’s continual improvement?
Chapter 9
1. What must a great company do to become an enduring great company?
2. Should increased profits and shareholder value be the focus of management or the by-product of building a great company?
3. Is building a great company much more difficult than building a good company?
4. What can you do to make your life a great life with a great legacy rather than merely a good life?
Epilogue
1. What is the role of the board of directors in changing a company from a good company to a great company?
2. What is the worst thing that management can do in its effort to make a good company a great company?
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You will have until the following (the next) class period to submit a one-page
(maximum) summary of your response to each question after it has been discussed in class.
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