ACCT 372 -- Internal Reporting Issues
Syllabus -- Fall 2012
Session # 442(second half of semester
Class Begins: Mon., 10/22;
Last Class: Wed., Dec. 5
Final Exam: Thur., Dec. 13 (8-10am)
Days -- Mon / Wed / selected Fridays
Section #14050: 8:00am--9:50am
Section #14051: 10:00am--11:50am
Section #14052: 12 noon--1:50pm
Professor: James Manegold
Office: ACC 121A
Office Phone: 213-740-4850
Office Hours: W 2:30-4pm or by appointment
E-mail: jmanegold@marshall.usc.edu
Students With Disabilities: Any student requesting academic accommodation based on a disability is required
to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved
accommodations can be obtained from DSP. Please be sure the letter is delivered to me no later than Friday,
November 2 (second week). Talk with me if you have any questions. DSP is located in STU 301 and is open
8:30am5:00pm, Monday through Friday. The phone number of DSP is (213) 7400776.
Course Description
This is an intermediate course in management accounting, and from your prior coursework you should
understand the breath of management accounting. Management accounting represents “a value-adding
continuous improvement process of planning, designing, measuring and operating non-financial and
financial information systems that guides management action, motivates behavior, and supports and
creates the cultural values necessary to achieve an organization’s strategic, tactical and operating
objectives.” (IMA).
There are three things I would like to highlight from the above. First, management accounting involves
the preparation and use of information for internal management purposes. We all know this, but given
that these purposes are very different from financial reporting, the accounting is very different as well.
Second, management accounting is a process that cuts across the entire organization. Therefore, some of
the material covered in this course will be relevant to you, no matter what kind of organization you work
in and what role you play in that organization. Finally, management accounting includes many different
types of information, both financial and non-financial.
This course focuses on cost accounting. There are many different ways of computing costs, and it
takes a high level of understanding to know which cost figures to use for various decision-making
purpose. Specifically, we will develop an understanding of the differences between so-called
“traditional” cost accounting systems, which allocate most indirect costs on the basis of direct labor
hours or dollars, and the more complex, often more accurate, but more difficult to implement,
“activity-based” cost systems. These two types of systems can yield dramatically different reported
cost figures and decisions, even though the company’s real economics do not change. It is important
to be appropriately skeptical when you see a cost report. Just because a number is printed on a
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computer report does not make it true. Cost accounting systems are just models of reality, and there
are good and bad models.
Learning Objectives: for ACCT 372
Upon completion of our course, you should be able to:
 Demonstrate skills in developing and interpreting cost analyses while providing insights into the
value of these analyses to management by solving problems that address issues in the
determination of relevant cost for decision-making.
 Demonstrate an understanding of the impact of adopting strategies that change a firm’s volume
of output by analyzing and solving cost-volume-profit problems.
 Identify industries suitable for a job costing accounting treatment and demonstrate an
understanding of job costing systems by solving problems and analyzing transactions.
 Identify and discuss the impact on budgeted profit caused by costs and revenues departing from
expected amounts by calculating and explaining various variances.
 Analyze cost and production information in a process costing system by preparing process cost
reports
 Identify differences between the traditional volume-based costing system versus the activitybased costing system, discuss the impact on pricing and product-mix decisions and orally present
the results as a group assignment
It is important to view the above learning objectives for our ACCT 372 course in the context of the
Leventhal Undergraduate Accounting program. All ACCT courses in our undergraduate program include
coverage of each of the five objectives to some degree. Specifically, below are the program objectives
with an indication of the depth of each objective’s coverage in ACCT 372.
Learning Objectives: USC Leventhal Undergraduate Accounting Program
Objective 1
Heavy
Objective 2
Medium
Objective 3
Light
Objective 4
Technical
Knowledge
Research, Analysis
and Critical
Thinking
Ethical Decision Students will demonstrate an understanding of ethics, ethical
behavior and ethical decision making.
Making
Students will demonstrate the ability to communicate ideas both
Communication
Light/Medium
Objective 5
Light/Medium
Students will demonstrate technical proficiency in the
accounting discipline, including the use of technical accounting
knowledge to help solve problems and make decisions.
Students will demonstrate the ability to critically analyze,
synthesize, and evaluate information for decision making in the
local, regional and global business environment.
Leadership,
Collaboration and
Professionalism
orally and in writing in a clear, organized and persuasive
manner.
Students will demonstrate leadership skills and the ability to
work cooperatively and productively to accomplish established
goals.
Our graduates should be well-trained professionals who combine technical skills with an ethical mindset
and the ability to organize and express their knowledge effectively.
ACCT 372: page 2 of 9
Prerequisites:
Prerequisite(s): BUAD 280 and BUAD 281 or BUAD 305
Required Materials
The primary text is
Horngren, Charles T., Srikant M. Datar, and Madhav Rajan [HDR]. 2011.
th
Cost Accounting: A Managerial Emphasis. 14 Edition. Upper Saddle River, NJ: Prentice Hall.
A license for “MyAccountingLab” accompanies your text. It will prove to be a useful resource
during the class.
NOTE: A customized paperback with selected chapters of the text is available at the USC
Bookstore. This customization will continue to be used next semester in the ACCT 372 course.
If you take ACCT 472, which also uses HDR, another customized paperback is available with all
the remaining chapters.
Course Notes
The course syllabus, assignments, distributed materials and other class information will always be
available through your Blackboard account. Solutions to assigned problems and those discussed in class
will be posted on Blackboard at the end of each week of class. NOTICE: SINCE ALL SECTIONS ARE
COMBINED ON BB, ALL STUDENTS MUST SIGN ON THROUGH THE #14050 SECTION!!!
Regular reading of a general business periodical or newspaper’s financial section will aid in your business
education. Copies of the Wall Street Journal are generally available in the Tutor Center Courtyard daily.
Finally, any other materials including case studies, quizzes, and in-class exercises will be distributed in
class.
Although not required, you will find it helpful to bring a calculator to class to work discussion problems
and in-class assignments. For exams, only school provided calculators will be allowed.
I will return the quizzes and the midterm exam to you after they are graded. If you are not present on the
day a quiz or the midterm exam is returned, I will maintain your quiz or exam in my office for you to pick
up during office hours. Any quizzes or exams not picked up will be destroyed at the end of the 2012
Spring semester.
Grading Policies
Your grade in this class will be determined by your relative performance on two exams, the highest two
scores from quizzes, in-class exercises, and a team presentation. The total class score will be weighted as
follows:
Midterm Exam
Final Exam
Two Highest Quizzes
In-class Exercises
Cases
ACCT 372: page 3 of 9
Points
100
100
40
TBD
40
Weight
40%
40%
5%
5%
10%
(Individual)
(Individual)
(Individual)
(Group)
(Group)
Grading and Assignment Detail
Expectations regarding your performance on exams, quizzes, in-class exercises and the case assignments
are as follows:
Exams
Exams may include: multiple-choice questions, short answer / brief essay questions, exercises, and
problems. Preparing for exams involves dedication and ends only when you can: 1) identify the relevant
issues in a given business situation; 2) analyze the data and transform it into information to be used in a
comprehensive answer; and 3) explain what you did using techniques demonstrated in class. The best bet
for success involves a number of steps. First, is making sure you do the advanced preparation for each
class session. Second is reworking problems done in class and trying other / additional problems. Third
is making sure you ask questions in a real-time manner to solidify your understanding of the material as
we go, rather than trying to ‘get it’ right before an exam. Remember, on exams you will be required to
perform all work (e.g., problem setup, solution generation, and answer presentation) on your own.
During the semester, each exam will be returned no more than one week after it has been given. After
each test is returned there is a one-week reflection period and then you will have one week to discuss your
grade. After this time, grades on tests become final. All other grades are final once given.
The Leventhal School of Accounting policy is exams should not be missed unless there is a very serious
emergency AND it can be properly documented. Also, to the extent possible, you must inform the
instructor of the emergency prior to the exam (it is understood this is not always possible). If you miss an
exam for something other than a serious emergency and / or you cannot provide documentation, you will
receive a zero grade for the exam. If there is a serious emergency, you can provide proper documentation
and (when possible) have notified me before the exam, a substitute grade will be calculated based on the
normalized average of your remaining future exams.
The final exam must be taken at the scheduled time unless an incomplete contract has previously been
approved according to Leventhal School of Accounting guidelines.
Quizzes
Quizzes may include multiple-choice questions, exercises and problems. They will be given one ‘class
week’ before each exam (including the final). Preparing for quizzes is facilitated by keeping up with the
work in class, reworking problems we have done in class, and trying other problems. No make-up
quizzes will be given as only the two highest raw scores are used to generate the quiz component of the
total score.
In-class Exercises
At various points during the semester, unannounced exercises will be introduced to provide students with
examples of kind of material they should expect to see on exams. These exercises can be completed by
ad hoc groups, of four members or less, using any course materials present (i.e., open book / open notes).
Points are earned by students completing the exercise based on the proper application of the techniques
covered during class discussion. No make-ups or alternative assignments will be accepted.
Case Assignments
This class includes a number of case assignments designed to assess your current knowledge and expand
your ability to analyze situations that we have not previously discussed. Working with a four-person (or
less) team, which may vary over time, you will be responsible for preparing a short written and possibly
oral report. No make-ups or extensions will be allowed.
ACCT 372: page 4 of 9
Grade Determination
Final grades represent how you perform in the class relative to other students. Your grade will not be
based on a mandated target, but on your performance. Historically, the average grade for this class is
about a (B+). Three items are considered when assigning final grades:
1. Your average weighted score as a percentage of the available points for all assignments (the
points you receive divided by the number of points possible).
2. The overall average percentage score within the class.
3. Your ranking among all students in the class.
Evaluation of Your Work:
You may regard each of your submissions as an “exam” in which you apply what you’ve learned
according to the assignment. I will do my best to make my expectations for the various assignments clear
and to evaluate them as fairly and objectively as I can. If you feel that an error has occurred in the grading
of any assignment, you may, within one week of the date the assignment is returned to you, write me a
memo in which you request that I re-evaluate the assignment. Attach the original assignment to the memo
and explain fully and carefully why you think the assignment should be re-graded. Be aware that the reevaluation process can result in three types of grade adjustments: positive, none, or negative.
Important Dates for Fall 2012 (Second Half—Session 442)
First Day of Class
Monday, October 22
Last Day to Add or Drop w/out a “W” for ACCT
courses (Session 442)
Monday, October 29
Thanksgiving Break
Wed. - Friday, November 21-23
Last Day to Drop with a “W” for ACCT courses
(Session 442)
Monday, November 26
Last Class Meeting
Friday, December 7
Final Examinations
Wednesday, December 12 – December 19
Winter Recess
December 20 – January 13
ACCT 372: page 5 of 9
MARSHALL GUIDELINES
Retention of Graded Coursework
Final exams and all other graded work which affected the course grade will be retained for one year after the end of
the course if the graded work has not been returned to the student (i.e., if I returned a graded paper to you, it is your
responsibility to file it, not mine).
Technology Policy
Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated
by the professor. Use of other personal communication devices, such as cell phones, is considered unprofessional
and is not permitted during academic or professional sessions. ANY e-devices (cell phones, PDAs, I-Phones,
Blackberries, other texting devices, laptops, I-pods) must be completely turned off during class time. Upon request,
you must comply and put your device on the table in off mode and FACE DOWN. You might also be asked to
deposit your devices in a designated area in the classroom. Videotaping faculty lectures is not permitted due to
copyright infringement regulations. Audio recording may be permitted if approved by the professor. Use of any
recorded or distributed material is reserved exclusively for the USC students registered in this class.
Emergency Preparedness/Course Continuity
In case of a declared emergency if travel to campus is not feasible, USC executive leadership will announce an
electronic way for instructors to teach students in their residence halls or homes using a combination of Blackboard,
teleconferencing, and other technologies.
Undergraduate Program Learning Goals
According to AACSB, the Learning Goals state how the degree programs demonstrate the Marshall mission.
Learning Goals should be broad statements, describing the goal of learning as well as the outcome. Accordingly,
below the goal is what Marshall intends the students should be and the outcome further describes students’
application and transfer of knowledge. The goals should express expectations that reflect the depth and breadth of
student knowledge and skills that are sustainable foundations for life-long learning in support of their professional
and personal development.
1.
2.
3.
4.
5.
6.
Our graduates will have an understanding of the key business areas and their interplay to effectively
manage different types of modern enterprise.
Our graduates will have a global mindset demonstrating an understanding of the interplay of local,
regional, and international markets, and economic, social and cultural issues.
Our graduates will demonstrate critical thinking skills, decision-making, and problem-solving abilities
to strategically navigate complex demands of business environments.
Our graduates will demonstrate leadership skills aspiring to be sensible, future-oriented leaders and
innovators.
Our graduates will demonstrate ethical reasoning skills, understand social, civic, and professional
responsibilities and aspire to add value to society.
Our graduates will be effective communicators in speaking and writing to facilitate information flow in
organizational, social, and intercultural contexts.
ACCT 372: page 6 of 9
LEVENTHAL SCHOOL OF ACCOUNTING
GRADING AND ACADEMIC STANDARDS
ACCT 370, 371ab, 372, 373, 374, 462, 463, 470ab, 472, 473, 474 476, 478, 479
The Leventhal School of Accounting adheres strictly to the grading standards of the University and the School of
Business Administration. Additionally, the Leventhal School of Accounting has supplemented those standards with
certain others. For students' convenience, and to prevent misunderstanding, these additional standards are
summarized below.
GRADING STANDARDS
The following grades are used: A - excellent; B - good; C - fair; D - minimum passing; F - failure. The grade of F
is awarded for failing work at the end of the semester. The assignment of minuses and pluses when earned is
required.
The grade of W (Withdraw) is assigned if the student officially withdraws after the third week but before the end of
the twelfth week of the semester. No withdrawals will be permitted after the end of the twelfth week except by
student petition to the University's Committee on Academic Policies and Procedures.
Students may elect to audit courses during the first three weeks of the semester. A course taken for audit (V) will be
assessed at the current tuition rate. A course taken for audit (V) will not receive credit and will not appear on the
USC transcript or grade report. Under no circumstances will the University allow a change in the registration status
of a course from letter grade or credit to audit (V) or vice versa after the third week of a given semester.
Incomplete Grades Explanation
In incomplete (IN) grade may be assigned due to an “emergency” that occurs after the 6 th week of classes for half
semester courses or the 12th week for full-semester courses.. An “emergency” is defined as a serious documented
illness, or an unforeseen situation that is beyond the student’s control, that prevents a student from completing the
semester. Prior to the 6th or 12th week, the student still has the option of dropping the class. Arrangements for
completing an IN course should be initiated by the student, and negotiated with the instructor. Class work to
complete the course should be completed within one calendar year from the date the IN was assigned. The IN mark
will be converted to an F grade should the course not be completed.
Academic Integrity – Leventhal School of Accounting Honor Code
Students enrolled in any class offered by the Leventhal School of Accounting are expected to uphold and
adhere to the standards of academic integrity established by the Leventhal School of Accounting Student
Honor Code. Students are responsible for obtaining, reading, and understanding the Honor Code System
handbook. Students who are found to have violated the Code will be subject to disciplinary action as
described in the handbook. For more specific information, please refer to the Student Honor Code System
handbook, available in class or from the receptionist in ACC 101.
Writing Standards
The ability of students to write clearly and concisely is a necessary prerequisite to success as an accounting
professional. Accordingly, students will be required to demonstrate writing capability in all accounting
courses. This may be accomplished in various ways, e.g., through the inclusion of essay-type questions on
course examinations.
ACCT 372: page 7 of 9
G.P.A. PREREQUISITES FOR UNDERGRADUATE ACCOUNTING COURSES
The grade point average prerequisites for any undergraduate student enrolled in any accounting course is a minimum
2.5 gpa for all completed accounting courses. In computing grade point average prerequisites, BUAD 250ab, 280,
281, 305 and 302T are considered accounting courses.
Grades in accounting courses taken at other institutions will not be included in the computation of the cumulative
accounting grade point average.
When a student's cumulative accounting grade point average falls below 2.5, the student is placed on probation. If a
student on probation does not regain a minimum accounting cumulative GPA of 2.5 after completing the next 12
semester hours in all courses (including accounting courses) attempted within the University, that student will not be
permitted to continue as an accounting major in the Leventhal School of Accounting. Exceptions to this policy may
be granted only in unusual circumstances by the Academic Standards Committee of the Leventhal School of
Accounting. Decisions of the Academic Standards Committee are final.
To be removed from probationary status, a student may elect either to take another accounting course or courses for
which prerequisites are met or to repeat an accounting course or courses in an attempt to earn a higher grade.
Regardless of the course of action taken, all courses completed will be counted in computing the cumulative
accounting grade point average.
The grade of "W" in an accounting course taken while a student is on probation will not extend probation. The
probation period ends at the end of that semester during which the student completes a cumulative total of 12
semester hours of courses in any subject(s) at the university. Under no conditions will the student be permitted more
than two successive semesters, including the summer semester, to complete the 12 semester hours of courses.
Students must attain a minimum 2.5 cumulative accounting grade point average to graduate with a Bachelor of
Science in Accounting degree.
See the USC Catalogue for further restrictions on including grades in repeated classes in the overall grade point
average computation.
ACCT 372: page 8 of 9
.Class
No.
Date
Topic(s)
Reading
Assignments
(in paper text)
Problems to Try
Office
Hours
(ACC 121a)
1
Mon.
10/22
An Introduction to Cost Terms
and Purposes
HDR: Ch. 2 (2)
2
Wed.
10/24
Cost-Volume-Profit Analysis
Job Costing
HDR: Ch. 3 (3); 4
(4) Case I-Seligram
HDR 2-28; 2-36; 2-37
3-32; 3-36
In-class: Kentucky
3-5pm
3
Mon.
10/29
Job Costing
Process Costing
HDR: Ch. 17 (12)
Pages 433-449
only (paper)
DUE: Case I
HDR: 17-30 through
17-32
3-5pm
4
Wed.
10/31
Process Costing
Spoilage, Rework and Scrap
HDR: Ch. 18 (13)
HDR: 18-16 through
18-20;
18-35 through 18-37
3-5pm
5
Mon. 11/5 Cost Allocation: Joint Products
and Byproducts
QUIZ #1 – Classes 1-4
HDR: Ch. 16 (11)
HDR: 16-32
3-5pm
6
Wed. 11/7 Cost Allocation: Joint Products
and Byproducts
Midterm Review Questions
Case II – ABC Plus
HDR: 16-33; 16-37
3-5pm
Extra OFFICE HOURS
n/a
THUR, 11/8, 10am- FRI, 11/9 – by
2pm
appointment
7
Mon.
11/12
Midterm: Classes 1 through 6
n/a
8
Wed.
11/14
Activity-Based Costing and
Activity-Based Management
HDR: Ch. 5 (5)
DUE: Case II
HDR 5-17; 5-29
3-5pm
9
Mon.
11/19
Activity-Based Management
HDR: Ch. 5 (5)
HDR 5-28; 5-27
3-5pm
Wed.
11/21
THANKSGIVING HOLIDAY – NO
CLASS
10
Mon.
11/26
Cost Allocation and CustomerProfitability Analysis [NO Sales
Variance Analysis]
HDR: Ch. 14 (9)
Pgs. 324-339;
Case III
HDR 14-17; 14-20; 14- 3-5pm
22
11
Wed.
11/28
Pricing Decisions and Cost
Management
HDR: Ch. 12 (8)
HDR: 12-27; 12-29;
12-32
3-5pm
12
Mon. 12/3 QUIZ #2 – Classes 8-11 (last
half of class)
DUE: Case III
n/a
13
Wed. 12/5 Review of all materials
3-5pm
Supplemental Office Hours: M & W, Dec. 10 & 12; 12noon-3pm – 12/6 & 12/11 by
appointment
FINAL EXAM: -- THUR. 12/13 -- TIME: 8:00-10:00am – ROOM: TBA
ACCT 372: page 9 of 9