UNIVERSITY OF ALBERTA SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING,OPERATIONS AND INFORMATION SYSTEMS
Accounting 523
ACCOUNTING INFORMATION AND INTERNAL DECISION MAKING Syllabus
WINTER2019
Instructor: Sanjay Banerjee, Ph.D. Class
Office: Bus 3-30D
X50: M 6:30 pm – 9:30 pm (BUS 3-5) Office Hours: By appointment
E-mail: [email protected]
1. COURSE DESCRIPTION AND OBJECTIVES
This course is an introduction to managerial accounting. It is designed to give MBA students a solid understanding of the basic functions of management accounting within an organization.
The course emphasizes the links between accounting information and management activities such as operational decision making, financial planning and control, organizational design, and performance evaluation.
Specific skills developed in this course include the abilities to: identify, categorize, and analyze the behaviour of costs; utilize cost information in making decisions (i.e., cost-benefit and profitability analyses); prepare and use budgets; and use accounting information to evaluate and motivate the performance of divisions, departments, and other units within organizations.
At the conclusion of the course, students should be familiar with the basic terminology, concepts, and techniques of managerial accounting; be able to utilize them in managerial problem solving; and be able to critically evaluate managerial accounting data and reports.
This course focuses primarily on the two learning goals of the MBA program: quantitative skills and critical thinking. The assigned problems and exams are designed to enhance and assess the student’s quantitative skills, knowledge of cost accounting and its use in decision- making, and the ability to apply these skills and knowledge in various settings. Critical thinking skills are applied through the use of quantitative analysis for decision-making purposes.
2. COURSE MATERIALS
Textbook: Managerial Accounting (11th Canadian Edition) by Garrison, Libby & Webb
(McGraw-Hill Ryerson). This is available for purchase at the Bookstore or online as an e-book version. The textbook is also on reserve in the Winspear Library.
Cases: Case course packet (link and instructions are available on eClass).
Course Website: Lecture notes and problems, practice exams, and solutions for the recommended problems are available on the course website on eClass.
2 3. COURSE OVERVIEW
The classes will be a combination of lectures, and discussions of problems and cases. Attached is a tentative class schedule. Each day has assigned readings and recommended problems, and some days have assigned cases. I expect that you will come to the class having already read the assigned chapters, made an honest attempt at solving the recommended problems, and
thought through and analyzed the assigned cases. This way, we will be able to devote most of the class time to thinking about and responding to each other's analyses of the problems and cases.
4. EVALUATION
Your grade in this course will be based on the marks you obtain on class participation, 3 case write-ups (best 3 out of 4 cases), a 90-minute midterm exam, and a 2-hour comprehensive final exam. These marks will be weighted as follows to determine your percentage mark in the course:
Class Participation 10%
Case Write-ups (3 @ 10%) 30%
Midterm Exam 25%
Final Exam 35%
Total 100 %
Letter grades will be assigned to the percentage marks in accordance with University
Regulations [Section 23.4(5) of the University Calendar]. Grades in this course will be based on a combination of absolute achievement and relative performance. These grades represent the only marks available to students. No additional work or extra credit is available.
Class Participation
Class participation marks depend on your frequency and quality of participation. Of course, if you fail to attend classes, you are not participating.
Pre-class preparation is critical to your participation in class discussion. If you aren’t prepared for class, the quality of your participation will be severely lacking. The quality of the class, to an extent, depends on your preparation, attendance, and participation.
You are encouraged to ask and answer questions from the instructor and other students.
However, your class participation marks are not allocated based on the number of words you speak in a class. While regular participation in class discussion is a factor, the content and timing of your remarks is more important. Good content involves relating your comments to the subject at hand. Often some of the best contributors to class discussion are those who participate in only a few sessions, but their contributions are truly insightful and persuasive.
The issue is one of quality not quantity.
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Certain behaviours can contribute to a poor class discussion and will be viewed as negative contribution. The lack of courtesy is one such behavior. If you expect others to be quiet and attentive while you speak, then you should extend this courtesy to others. Other potential negatives are absenteeism and tardiness. Students that are absent from class are not contributing. Individuals who are late interrupt the session upon their arrival and cause distraction.
Case discussion
On the days with an assigned case, I will start the class by (randomly) asking one student to provide a brief analysis (in 5 minutes) of the case. The student is expected to summarize the case facts, highlight the main issues involved, and suggest a couple of recommendations. An effective lead-off sets the tone and encourages the class to explore more deeply the main issues of the case. After the individual lead-off analysis, the discussion will be opened to the rest of the class. Others may decide to build on the lead-off discussion, to present a different alternative, or probe deeply on one or more issues which seem to have been inadequately developed or perhaps overlooked.
My role will be to help facilitate discussion by managing the class process to ensure that the class collectively understands the main accounting issues of the case. There is no single “right”
answer to any of these issues. There can be, however, several wrong answers. There are also answers that are not adequately developed with analysis. Some answers are ineffective because they are not communicated persuasively.
Case Write-up
We will discuss four cases in class as per the course schedule. You are expected to read the cases before coming to class and to answer the questions raised in the case or answer additional questions if assigned.
Case write-ups should not be more than five pages of text (typed, double spaced, 12 point
"Times" font, 1-inch margins) plus exhibits. Use exhibits only if they are absolutely necessary to support your analysis. If you do include exhibits, refer to those exhibits in the text,
explaining the clear connection between your analysis and any given exhibit.
Your write-up should include the main issues of the case, your analysis supported by evidence from the case, and your conclusions and recommendations. You can assume that the reader is familiar with the case facts. It is useful to think of a senior executive who has very limited time to read your write-up. Use of visual cues and format to emphasize your main points will
increase their impact.
A case write-up will be evaluated based on the following criteria:
(1) Issues (demonstrates understanding of the main issues of the case and their connection to accounting concepts/theory discussed in class or textbook)
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(2) Analysis (numbers are reasonable and relate to the information provided in the case; considers multiple perspectives; performs sensitivity analyses)
(3) Recommendations (clear, well-reasoned and creative; chooses one out of several options)
(4) Presentation (articulates ideas including grammar, spelling, style etc.; uses a professional and visually pleasant format)
Marks for the criteria are: 20%, 40%, 30%, and 10%.
You should turn in a hard-copy of your case write-up at the beginning of the class in which we will discuss a case. Because the case will be discussed in detail in class, no write-ups will be accepted after the start of the class. You are expected to do your own work on these write-ups (this is not group work).
If you must miss a class when a case will be discussed, please email your case write-up to me before the class begins. Aside from the rare instance in which you must email your assignment to me, I will expect a hard-copy. Failure to turn in a case write-up at the beginning of class will result in zero marks for that case.
Examinations
There is one 90-minute midterm and one two-hour final exam in this course. Exam dates are as indicated on the class schedule below. All exams will be closed book. You may use a non- programmable calculator.
Absence from Exams
Anyone who has an unavoidable commitment that conflicts with the midterm exams should advise me of the conflict, in writing, at least one week prior to the exam date. If a student is absent from a midterm exam for a legitimate and adequately documented reason, the weight of the missed exam will be re-allocated to a comprehensive final exam. There will be no deferred midterm exams in this course. If a student is absent from the final exam, he or she must obtain permission from the Faculty’s MBA Office to write a deferred final exam.
Exam Remarking Policy
After marked midterm exam papers have been returned, the answer key will be posted on the course web page. Students should review the marking carefully and bring to the instructor’s attention any questions about their marks as soon as possible, but no later than one week after the exams have been returned. Any exam brought to my attention for remarking should be accompanied by a short, written explanation of the questions you want me to review. No exam papers will be accepted for remarking more than one week after the exams and answer key have been made available.
5 5. ACADEMIC INTEGRITY
The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.
Policy about course outlines can be found in §23.4(2) of the University Calendar.
6. RECOMMENDED PROBLEMS
Upon completion of each chapter, you should work on the following recommended problems from the textbook. The solutions are available on the course website.
Chapter 2: 10, 13, 19, 24, 25 Chapter 3: 13, 19, 20 Chapter 4: 21, 25, 34
Chapter 5: 16, 19, 25, 26, 27 Chapter 7: 13, 19, A-5 Chapter 8: 12, 16, 18 Chapter 9: 24, 25, 28 Chapter 10: 19, 29, 38, 40
Chapter 11: 18, 20, A-10, A-11, A-13 Chapter 12: 21, 25, 27, 28, 34 Chapter 13: 19, 24, 27, 30
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ACCTG523X50WINTER TENTATIVE CLASS SCHEDULE
# Dates Topics Readings*
1 M Jan 7 Introduction & Cost Terms, Concepts & Classifications Chapters 1 & 2
2 M Jan 14
Cost Behaviour
Cost-Volume-Profit (CVP) Relationships
Chapter 3 + Appendix 3A
Chapter 4 3 M Jan 21
Case 1: Caribbean Internet Cafe Product Costing (Job-order Costing)
Chapter 5
4 M Jan 28 Activity-Based Costing Chapter 7+
Appendix 7A 5 M Feb 4
Case 2: Asante Teaching Hospital Absorption and Variable costing
Chapter 8
M Feb 11 Midterm: 6:30-8:00 pm in regular classroom Chapters 1-5, 7 M Feb 18 No class (Reading Week)
6 M Feb 25 Relevant Costs for Decision Making Chapter 12 7 M Mar 4 Management Control and Transfer Pricing Chapter 11+
Appendix 11A 8 M Mar 11
Case 3: Birch Paper Company Static and Flexible Budgets
Chapter 9
9 M Mar 18
Guest Speaker: Matthew Rudd, Vice President, Finance, Canadian Western Bank Group
Standard Costs
Chapter 10
10 M Mar 25 Capital Budgeting Decisions Chapter 13
11 M Apr 1
Case 4: Entertainmentnow.com
Additional problems from Chapters 9, 10 & 13
12 M Apr 8 Course wrap up & review All chapters
M Apr 15 Final: 6:30-8:30 pm in regular classroom Comprehensive
* Recommended problems for each chapter are listed on page 5
