School of Administrative Studies, Faculty of Liberal Arts and Professional
Studies , York University
Summer 2011 Course Outline
AP/ADMS3510 3.0 A & B
Managerial Cost Accounting and Analysis
Course Instructor/Contact:
Summer:
A: Wednesday 7-10: pm Instructor: Lynne MacInnes
Email: lmacinne@yorku.ca
Room: Vari Hall B
B: Thursday 7-10: pm Instructor: Santha Tsang
Email: sjmtsang@yorku.ca
Room: Curtis C
Calendar Description: Prerequisite / Co-Requisite:
A course in theories and techniques of cost accounting and management
accounting. Emphasis is placed on cost accumulation for purposes of (a)
asset valuation and income measurement, and (b) planning and control.
Prerequisites: AP/ADMS 2320 3.00, AP/ADMS 2500 3.00, AP/ADMS 2510
3.00; AP/ECON 1000 3.00, AP/ECON 1010 3.00. PRIOR TO FALL 2009:
Prerequisites: AK/ADMS 2320 3.00 or AK/ADMS 3320 3.00 (prior to
Summer 2005), AK/ADMS 2500 3.00, AK/ADMS 2510 3.00; AK/ECON
1000 3.00, AK/ECON 1010 3.00. Course credit exclusion: AK/ADMS 3510
3.00.
Notes:
Students may not register or continue in this course without completion of
the pre-requisites (the following grades do not represent successful
completion of a course: E; F; FD; DEF; Deferred Standing.) Any student
with prerequisite or course enrollment issues should contact the ADMS
administration office (Room 282 Atkinson Building) to resolve his or her
concerns prior to attending any classes. Phone 416-736 5210, Fax 416736 5963 or e-mail akadms@yorku.ca. Your professor is not authorized to
waive prerequisite requirements or register/transfer you into a course
section. AK/ADMS 2510.03: Introduction to Management Accounting is a
pre-requisite to this course. It is assumed that students are familiar with
the materials covered in that course. These include the following topics,
and students are advised to review the materials if they are unsure of
them. · Cost terms, purposes and flows · Cost –Volume-Profit model and
analysis · Costing systems: job costing, process costing, standard costing,
activity based costing and inventory costing methods · Cost Behaviour,
Cost Allocation, and relevant costs · Budgeting, flexible budgets and
variances · Responsibility accounting, decentralized operations, transfer
pricing, performance measurement and incentive systems.
Required Course Text / Readings:
Weil and Maher, Handbook of Cost Management, second edition, Wiley.
Custom package consisting of chapters 7, 8, 11, 16, 18, 20, and 28. (W &
M)
Spraakman, Current Trends and Traditions in Management
Accounting Case Analysis, 5th Edition, Captus Press, 2007. (S)
Mallouk, Spraakman, Raiborn, Barfield, Kinney, Managerial Accounting,
3rd Canadian Edition, Thomson Nelson, 2009. (M et al.)
Expanded Course Description: Organization of the Course:
A course in theories and techniques of cost accounting and management
accounting. Emphasis is placed on cost accumulation for purposes of (a)
asset valuation and income measurement, and (b) planning and control.
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As a second course in management accounting, students expand their knowledge
and understanding of management accounting techniques that were developed in the
introductory course in management accounting. This course builds on the foundations
of managerial accounting that have been introduced in AK/ADMS 2510.03:
Introduction to Management Accounting (or its equivalent) and expands in several
ways:
Firstly, each of the topics is studied in great depth.
Secondly, each of the topics is studied using a higher level of statistical and
mathematical analysis.
Thirdly the topics are augmented with a detailed study of activity based costing and
activity-based management.
Fourthly, the topics are studied through the use of cases.
With the management accounting techniques from ADMS2510 and those learned in
this course, students will apply these techniques with cases for planning, controlling
and decision-making purposes. This course requires students to challenge their
knowledge and understanding of management accounting with case analyses.
Schedule: Summer 2011 (subject to change):
#
Class
In class topics Reading Material Problems and cases
dates
(book: chapter)
1
A-May 4
B-May 5
Management
S: 1,2 and 3
Accounting and
the Case Study
Method
Part I: Management Cost Accounting
2
A-May 11
B-May 12
Target Costing
and Pricing
W & M: 7
M: 3, 9, 10
Problem: 9.16 (Mallouk p.
586)
May 13: last day to enrol without permission of the instructor
3
A-May 18
B-May 19
Kaizen Costing W & M: 8
continuous
M: 8
improvement.
Case (Spraakman)
Consolidated Pump
3
4
A-May 25
B-May 26
May 27:
5
Logistics and
W & M: 11
marketing costs M: 4, 8, 9
Case (Spraakman): Major
Electronics
Last date to enrol with permission
A-June 1
B-June 2
June 4
(Saturday)
12am- 2pm
Cost and
revenue
allocation
W & M: 16
M: 8
Case (Spraakman): King
Coal
Mid Term Exam #1
Topics of classes 1 to 5 included Location: TBA
Part II: Management Cost Analysis
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7
A-June 8
B-June 9
Operating
budgets and
capital
budgeting
A-June 15 Variance
B-June 16 Analysis
M et al: 6, 14
Case (Spraakman): Fusion
Computing
W & M: 18
M et al: 7
Case: Case 7.3 (Mallouk p.
Supplement to
445)
Standard Cost
Systems (course
website)
July 5:
Last day to drop without academic penalty
June 19
Sunday
Submit group case study by e-mail to your instructor before
the midnight.
Case to be posted/announced in the course web sites.
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A-Jun 22
B-Jun 23
Performance
measurement:
the balanced
scorecard
M et al: 12
June 25
(Saturday)
12am- 2pm
Mid Term Exam #2
Topics of classes 6 to 8 included
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Non-profit
organizations
A-Jun 29
B-Jun 30
W & M: 28
Case (Spraakman): SBS
Books
Location: TBA
Case: Balanced Scorecard
in Hospitals
(course website)
4
10
A-July 6
B-July 7
Theory of
Constraints
W & M: 20
Case (Spraakman): Dindal
M: 9
Air Conditioners
Metropolitan
Manufacturing
(course website)
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A-July 13
B-July 14
Management
Control
Systems
M et al: 13
July 16
(Saturday)
12am-2pm
Case: Case 13.2 (Mallouk
p. 805)
Final Exam - Comprehensive exercises and integrative case
of all topics covered in the course
For Critical Dates during the semester see the following website;
http://www.registrar.yorku.ca/enrol/dates/su11.htm
Coourse URL:
http://jacinth.eso.yorku.ca/2011su-apadms3510«section»-03
Comprehensive Study Syllabus
In addition to the materials covered in the classroom, students are offered the
following list of materials they could take up individually to consolidate their
knowledge and prepare for the mid-term and final examinations. All items are taken
from the Mallouk et al textbook, 3rd edition, except where noted.
Before Classes Start:
Review all material from your Introductory Management Accounting course
(AP/ADMS 2510 or equivalent).
Weekly Self Study Problems:
Week 1:
Exercise 2.13, p.84:
Exercise 2.16, p.85:
Case 1.3, p. 29:
Hi-Low cost estimation
Cost terminology
Logistics value chain analysis
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Week 2:
Problem 3.3, p.155:
Case 2.2: p.91:
Problem 10.19,
CVP analysis & pricing
Pricing
Target costing
Week 3:
Problem 8.3, p.504:
Problem 8.6, p. 506:
Case 8.2, p. 520:
Value-added cost analysis
ABC cost analysis
Product costing
Week 4:
Problem 8.21, p. 514:
Problem 8.25, p.518:
ABC/logistics costs
ABC overhead cost allocations
Week 5:
Problem 8.22, p. 515:
Case 8.2, p.520:
Cost allocation
Cost allocation
Week 6:
Problem 6.22, p. 372:
Problem 6.23, p. 374:
Preparing a cash budget
Preparing an operating budget
Week 7:
Problem 7.18, p. 442:
Problem 7.22, p.443:
Case 7.3, p.445:
Cost variances
Sales variances
Variance analysis
Week 8:
Problem 12.22, p.771:
Case 12.1, p.773:
Case 12.4, p. 775:
Performance measurement
Balanced scorecard
Balanced scorecard
Week 9:
Spraakman case 22, p. 87:
Problem 8.7, p. 507
Financial management of an N.F.P.
Costs/pricing in a hospital
Week 10:
Problem 9.14, p. 585:
Problem 9.19, p. 588
Theory of constraints
Relevant costs
Week 11:
Case 13.1: p. 804:
Management control systems
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Concerns with Marking:
If you have concerns with the marking of your work, write your concerns on the cover
page and resubmit it to the professor, who will deal with them. Note, as there is a
certain amount of judgment in marking, the entire exam or assignment will be
remarked, and the overall mark could go up, stay the same, or fall.
Academic Honesty:
Students are advised to read and adhere to the policy on academic honesty, as stated
in the Atkinson calendar. Cheaters will be prosecuted. Cheating on exams and
involving plagiarism in written assignments represents attacks on the academic
integrity. Cheating and plagiarism of any type are not acceptable, and possible
consequences include an F in the course.
Course Learning Objectives:
Having successfully completed this course students are expected to have attained the
following learning objectives:
1: a comprehensive knowledge of cost accounting terminology and techniques;
2: an ability to apply cost accounting techniques to business cases;
3: an ability to present a case analysis in good form.
Weighting of Course:
Allocation of Marks: All Sections:
25% - Mid term Exam #1 (2 hours)
25% - Mid term Exam #2 (2 hours)
30% - Case Study to submit by e-mail (group)
20% - Final Examination – All topics covered in the course (2 hours)
Additional Information / Notes:
Mid term exams
The first and second mid term exams will consist of problems similar to those done in
class and recommended for this course plus questions about any of the cases
discussed in the class. Students must write mid-term examinations in the section in
which they are enrolled. Rooms cannot accommodate additional writers.
If you miss a mid term exam, no make up is available. Instead the weight of each
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missed exam (25 marks) will be automatically transferred to the final examination
weighting. With an attempt at an exam, the weight of that exam (25 marks), will no
longer be eligible for transfer to the final examination weighting.
Final Exam:
Deferred standing may be granted to students who are unable to write their final
examination at the scheduled time or to submit their outstanding course work on the
last day of classes. In order to apply for deferred standing, students must complete a
Deferred Standing Agreement (DSA) form and submit their request no later than five
(5) business days from the date of the exam. The request must be properly submitted
with supporting documentation directly to the main office of the School of
Administrative Studies (282 Atkinson), NOT to the Course Director. These requests
will be considered on their merit and decisions will be communicated to the students
by the main office. Students with approved DSA will be able to write their deferred
examination during the School's deferred examination period which for Summer term
courses will be administered during the period Friday September 23rd through
Sunday September 25th, 2011. No further extensions of deferred exams shall be
granted. The format and covered content of the deferred examination may be
different from that of the originally scheduled examination. The deferred exam may be
closed book, cumulative and comprehensive and may include all subjects/topics of
the textbook whether they have been covered in class or not. Any request for
deferred standing on medical grounds must include an Attending Physician's
Statement form; a “Doctor’s Note” will not be accepted.
DSA Form: http://www.registrar.yorku.ca/pdf/deferred_standing_agreement.pdf
Attending Physician's Statement form:
http://www.yorku.ca/laps/council/students/documents/APS.pdf
Case Study
The case study will be completed in groups of 5 or less students.
Each group will send by e-mail a written report with the solution to the case study no
later than midnight of Sunday June 19, 2011. Late submissions will only be allowed
with the express prior permission of the course director. The file name of the case
study should include the course name as follows:
ADMS 3510 Case Study
The cover page of the case report must indicate the title of the case, date of
preparation/submission, names and student numbers of the group members
and section in which he or she is enrolled. The written report can follow the
guidelines set up by your professor and, if possible given the nature of the
case, also have to:
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Review relevant facts, identify the symptoms and the underlying management
control issues.
Identify the problem faced by the company or its management team (it could
be a trade off, a ‘how’ type question, a design or implementation issue, etc.)
Review the history of the company or the division under analysis (only include
those events that are significant for the problem of the case)
Perform an industry analysis to identify the position of the company or its
divisions (strategic business units).
Whenever possible try to identify the strategy of the company or mention that
it lacks any strategic orientation or intent.
Perform a SWOT analysis in order to identify the distinctive capabilities (and
align them with the strategy and industry competitive position).
Review the management planning and control systems of the company. Do
they help to implement and achieve the strategy? Are they related with the
strategy and critical resources (distinctive capabilities)? Is there any way that
can be improved (to come with ideas regarding this last issue you can try a
SWOT analysis of the control and planning systems)?
Answer the specific questions indicated in the case. All answers and
recommendations have to be supported by a clear reasoning.
Have a length of up to 10 pages including cover page, titles, charts and
tables (text: 2.54 cm margins, 12 point Times New Roman font, and 1.5 line
spacing).
Final examination
The final will be a two hour exam and will cover all topics studied on the
course. It will include both problems and cases.
IMPORTANT COURSE INFORMATION
The Senate Committee on Curriculum & Academic Standards Web site provides an
important read, the: STUDENT INFORMATION SHEET.
The Student Information Sheet includes:



York's Academic Honesty Policy and Procedures / Academic Integrity
Website
Access/Disability
Ethics Review Process for Research Involving Human Participants
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

Religious Observance Accommodation
Student Conduct Standards
Additional information:



Academic Accommodation for Students with Disabilities
Alternate Exam and Test Scheduling
Grading Scheme and Feedback Policy
The Senate Grading Scheme and Feedback Policy stipulates that (a)
the grading scheme (i.e. kinds and weights of assignments, essays,
exams, etc.) be announced, and be available in writing, within the first
two weeks of class, and that, (b) under normal circumstances, graded
feedback worth at least 15% of the final grade for Fall, Winter or
Summer Term, and 30% for ‘full year’ courses offered in the
Fall/Winter Term be received by students in all courses prior to the
final withdrawal date from a course without receiving a grade (see the
policy for exceptions to this aspect of the policy http://www.yorku.ca/secretariat/legislation/senate/gradfeed.htm
"Final course grades may be adjusted to conform to Program or
Faculty grades distribution profiles.” If Term Test will be held outside
of regularly scheduled class time, include announcement of day, date
and time here (e.g., Saturday, October 28, 2006, 10 am to 11:30,
room TBA).

"20% Rule"
No examination or test worth more than 20% of the final grade will be
given during the last two weeks of classes in a term, with the
exception of classes which regularly meet Friday evenings or on the
weekend (Saturday and/or Sunday at any time). (Approved by Senate,
November 28, 1996)
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