TEXAS CHRISTIAN UNIVERSITY - M. J. NEELEY SCHOOL OF BUSINESS
ACCOUNTING 6023-080 (evening MBA section)
Accounting for Managerial Planning and Control
Syllabus for Spring 1998 - revised on April 1, 1998
Instructor: Dr. Will Yancey
Office location: Dan Rogers Hall 357 (east side of third floor)
Telephone and voice mail: 257-7543
Office Fax: 257-7227
(Since this fax machine is shared by all Neeley School faculty, please clearly mark your intended receiver on the first page of your transmission.)
Office Hours: 6:00 - 7:00 p. m. Tuesdays,
and other times as announced
Class meeting: 7:00 - 9:40 p. m. Tuesdays DRH 234
Zimmerman, Accounting for Decision Making and Control, Second Edition, Irwin/McGraw-Hill, 1997.
Yancey, Course Packet for ACCT 6023-080 Spring 1998.
Managerial accounting is used primarily for decision making within firms, rather than the primarily external user focus of financial accounting. Managerial accounting is useful for performance measurement, budgeting, control, and decision making. This course provides an overview of managerial accounting with applications to service, manufacturing, and not-for-profit organizations.
Midterm exam 100
Final exam 100
Problem sets 40
Quiz 1 20
Quiz 2 20
The threshold for letter grade cut-offs will be determined after the final exam is graded.
Class participation is encouraged. Your comments should help the class to gain insights on theories, problems, or cases. You can identify key issues in cases, point out apparent contradictions, draw analogies to other areas, add relevant anecdotes from your own experience, or make other comments. The instructor will call for volunteers and will randomly call on individuals. Please allow your more reluctant classmates an opportunity to speak. If you find relevant articles that you would like to share with the class, please inform the instructor and copies might be made.
EXAMS AND QUIZZES
Take the exams and quizzes at the time specified in the syllabus or announced in class. Alternative times may be arranged only if (1) the student has extraordinary scheduling problems; and (2) arrangements are made prior to the beginning of the quiz or exam. If a quiz or exam is missed and no prior rescheduling agreement has been made, a grade of zero will be assigned.
You may use the following items for a quiz or an exam: pencils, erasers, rulers, and calculators. You may not use your textbook, notes, or review sheets. If present-value factors are required, copies of the tables from the end of Chapter 3 of the textbook will be provided.
The quizzes and exams will consist of numerical problems and short answer problems. Application of the course concepts will be tested rather than your ability to memorize definitions. Problems may involve extending the course concepts to applications not covered in the textbook or class discussion.
Academic dishonesty on any kind will not be tolerated. Any instances of academic dishonesty will be dealt with according to the policies of the university. Your instructor may impose the maximum penalties available under university policy.
If you require accommodation for a disability, please contact the Center for Academic Services, 106 Rickel Building, 257-7486.
You should complete the assigned problems and read the chapter before class begins. All of the assignments listed below are from the problems and cases at the end of the textbook's chapters - not the concept questions in the body of the chapters.
Submit your problem solutions at the beginning of class at the front of the room. Keep one copy of your solution for reference during the class discussion.
You may prepare your solutions by hand or with computer software. However, be aware that you may not use a computer for the exams or quizzes. You should make a substantial effort to solve these problems on your own before consulting other students or the instructor.
Your submissions should be on 8.5-by-11-inch paper with your name on the top of each page. The problem numbers should be indicated at the beginning of each item. You may put more than one problem on each page, and may use both sides of a page.
Assigned problems and cases should be submitted on the assigned class night. If you are unable to attend class, please fax them to the instructor no later than 9:30 a.m. on the morning immediately following the due date. Since the fax machine (257-7227) is shared by all Neeley School faculty, please be sure to mark the intended recipient on the first page of your transmission. Late homework will not be accepted. Graded assignments will be returned to your mail slot.
These problem sets will be graded for a substantially completed solution to each assigned problem. The total number of points for each problem set is 4, generally one or two points per problem. Summary solutions for the problems will be distributed after the submissions are collected. There are 12 problem sets with 4 points each (48 points). The maximum number of points you can earn from problems is 40. Thus, you could omit two problem sets and earn all of the possible points for problems in this course. Alternatively, you could complete some or all of 12 different problem sets and get a total of no more than 40 points.
Problem sets, quizzes, and other materials will be returned to your mail slots on the first floor of Dan Rogers Hall. Please check your mail slots before class.
Each assigned chapter and reading should be read before class. The chapter notes in the course packet contain detailed chapter summaries that may be useful study aids. To improve your understanding, read the chapter again after class. Additional outside readings may de distributed in class.
Reading Chapter 1
Topics Course overview
Role of managerial accounting
Opportunity costs versus accounting costs
Fixed, variable, and average costs
Discuss Case 1-8 Parkview Hospital, textbook, p. 23
Due Problems 2-9; 2-11; 2-21; 2-33
Reading Chapter 2 (omit appendices)
Main Line v. Basinger case, course packet readings pp. 1-7
Topics Cost-volume-profit analysis
Discuss Main Line v. Basinger case from course packet
Due Problems 2-5; 2-6; 2-12
Quiz Quiz 1: Cost-volume-profit (CVP) analysis
Reading Chapter 3 (pp. 92-100; 109-111)
Topics Interest rate mathematics
After-tax cash flows
Due Problems 3-9; 3-19; 3-25; 3-30
Reading Chapter 3
Topics Net present value
Alternative investment criteria
Due Problems 3-11; 3-26; 4-13; 4-15
Quiz Quiz 2: After-tax cash flow and capital budgeting
Reading Chapter 4
Topics Principal-agent model and agency costs
Organizational architecture: measurement, rewards, decision rights
Discuss "How a Creaky Factory…" and "Charles Koch …" articles,
from course readings packet, pp. 8-10
Due Problems 5-4; 5-5; 5-14; 5-16
Reading Chapter 5 and readings packet, pp. 11-14
Topics Responsibility accounting
Divisional performance: ROI, RI, EVA
Discuss "Want to Be a Manager …" and "How a Chemicals Giant …"
articles from course readings packet, pp. 11-14
Due Problems 6-12; 6-13; 6-19; 6-20
Reading Chapter 6 (omit appendix) and readings packet, pp. 15-18
Topics Budgets and budgeting
Discuss "Why Budgets are Bad for Business," pp. 15-18 of course packet
February 28 Optional review session on Saturday, in DRH 234,
2:00 - 3:30 p. m. unless otherwise announced
March 3 Mid-term exam (chapters 1-6)
Due Problems 7-4; 7-9; 7-17; 8-16
Reading Chapter 7; Chapter 8 (pp. 266-367, pp. 384-386)
Topics Pervasiveness of cost allocations
Reasons for cost allocation
Death spiral (pp. 266-367)
Segment reporting (pp. 384-386)
Discuss Problem 8-16 Karsten Mills
March 17 - No class - TCU Spring Break
Due Problems 9-4; 9-6 (continues at top of page 450); 9-8; 9-11
Reading Chapter 9 (omit appendix at pp. 437-443)
Topics Absorption costing
Volume changes and fixed overhead rates
Discuss Problem 9-6 MacGiver Brass
Due Problems 9-15; 9-18; 9-21; 9-20
Reading Chapter 9 (omit appendix) and Case 9-1
Topics Absorption costing
Guest Ronald Woll, Support Services Manager, Halliburton Energy Services
Due Problems 11-4; 11-5; 11-6; 11-8
Reading Chapter 11
Topics Activity-based costing
Guest Craig Conrad, Vice President of Corporate Sales, TTI, Inc.
Discuss "TTI, Inc." and "Managing Customers for Profit" articles
articles from course readings packet, pp. 19-40
Optional Quiz 3: Absorption costing and over/underabsorbed overhead
Due Problems 10-2; 10-4; 10-7; 10-11
Reading Chapter 10
Topics Absorption costing's incentive to overproduce
Variable (direct) costing
Due Problems 12-11; 12-12; 12-14; 13-10
Reading Chapter 12 (pp. 554-571)
Chapter 13 (pp. 605-607)
Topics Standard costs
Direct materials and labor variances
Reading Chapter 14 and appendix and Problem 14-4
Topics Review integrative framework
Total quality management (TQM)
Just-In-Time (JIT) production
Review for final exam
Discuss Problem 14-4 Curtis on Corporate Performance, textbook pp. 669-670
May 5 Final exam (chapters 7-14)