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ACCOUNTING INFORMATION AND INTERNAL DECISION MAKING ACCTG 523 Section B1 Winter 2020
Wednesday 9:00 to 11:50 am (BUS 3-5)
Accounting, Operations and Information Systems (AOIS) University of Alberta School of Business
Instructor Sanjay Banerjee, PhD Office: BUS 3-30D
Office phone: 780-492-6774
E-mail: [email protected] Office hours: By appointment
Teaching Assistant Mr. Debnath Nandi
Location: Third floor lounge beside the painted cow E-mail: [email protected]
Office hours: Wednesday, 12:30-1:30 pm
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; to utilize cost information in making decisions (i.e., cost-benefit and profitability analyses); to prepare and use budgets; and to 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 2. REQUIRED 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. Prior edition of the textbook will not be sufficient for the course.
Cases: Case course packet (link and instructions are available on eClass).
Course Website: Lecture notes, practice exams, and solution to the practice problems are available on the course website on eClass.
3. FORMAT
The classes will be a combination of lectures, case discussions, and problem solving. Attached is a tentative class schedule. Each day has assigned readings and practice problems, and some days have assigned cases. I will assume that you have done the assigned preparation before the class.
4. EVALUATION
The final grade will be determined using the following weights:
Class Participation 10
Case Write-ups (3 @ 5%) 15
Midterm Exam 35
Final Exam 40
Total 100
Bonus credits 3
Letter grades will be determined in accordance with the Evaluation Procedures and Grading System section of the University’s Academic Regulations. Grades in this course will be based on a combination of absolute achievement and relative performance.
Class Participation and Conduct
Class participation marks depend on the frequency and quality of participation. 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 class discussions depends on your preparation, attendance, and participation.
Class participation includes asking and answering questions to the instructor and students. 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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Class participation marks will be awarded as follows. If you attend a class, you receive 6 points. If you contribute to class discussions (which also include discussions in small groups), you receive 8 points. If your contribution is outstanding, you receive 10 points. If you do not attend a class, your participation mark is zero for that class. In all cases, the instructor will be the sole arbiter of the worth of your contribution. In calculating your total participation marks for the course, I will toss out your two worst performances and average the rest.
As a courtesy to your fellow students and the instructor, and to ensure an effective learning environment, please observe the following:
i) Students should carry their name cards and try to sit in the same/similar seat each lecture so that I can keep track of your class participation.
ii) Students arrive in class before it begins, and will stay until it is over, except in an emergency. If you must leave early, please inform me before class and sit in an open aisle near the exits of the classroom.
iii) Students keep all phones and electronic devices on silent mode. The use of personal computers including laptops and tablets is strictly for the purposes of the class.
Case Write-ups
We will discuss 4 cases in class as per the course schedule. The link and instruction for the cases are available on eClass. 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. If you must miss a class when a case will be discussed, please email me your case write-up before the class.
The write-ups are strongly encouraged to be done in groups up to five students. In case you do not find anybody to work with, you may complete the write-ups individually. All groups must work independently. Prior to turning in the write-ups, members of any group are not allowed to discuss or share answers with the members of other groups, or anybody inside or outside the Alberta School of Business (ASB).
The write-ups should not be more than 4 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 the exhibit.
Your write-up should include only three sections: the main issues of the case, your analysis supported by evidence from the case, and your recommendations (short- and long-term), which may include some suggestions about their implementation. You can assume that the reader is familiar with the case facts, which you do not need to supply in the write-up. It is useful to think of a senior executive who has very limited time to read your write-up.
Marks for each write-up will be awarded as follows. If your write-up demonstrates that you have made an honest attempt in completing all three sections, you receive 4 marks. If your write-up looks professional, and demonstrates that you have understood the main issues, the numbers in your analysis are reasonable and your
recommendations are well-reasoned, you receive 5 marks. If you do not submit a write-up in time, you receive zero marks. I will toss out your worst performance and average the rest. There are no make-up for case write-ups.
4 Examinations
There is one two-hour 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 are allowed to use a financial calculator, and carry a one-page (8.5X11) sheet of paper (one-sided) with as many formulas as you wish. Personal computers including notebooks, laptops, and smartphones are not allowed.
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 the 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.
Bonus Credits
You may receive up to 3 bonus marks by writing a term paper on any of the following topics:
i) Costing and pricing of health care in Canada;
ii) Costing and pricing of prescription drugs in Canada;
iii) Costs of climate change;
iv) The use of blockchain on any topic discussed in the course;
v) The use of machine learning and artificial intelligence in any topic discussed in the course.
If you have other interesting topics in mind, talk to me. The term papers are to be done individually, and should not be more than 10 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.
Your term paper should include five sections: an abstract of not more than 300 words, an introduction detailing the main issues of your chosen topic, a summary of the existing body of research and practice, a summary of on-going and future research and practice, and a conclusion. While citing the sources of information, you may use the American Psychological Association (APA) style.
5 5. ACADEMIC INTEGRITY
Absolute and complete academic honesty is expected of you in this course. It is important for you as a student to behave in an ethical manner. 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 and avoid any behaviour that 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.
6. OTHERS
Audio or video recording of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved accommodation plan. Recorded material is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the instructor.
Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University’s Academic Regulations.
7. USEFUL LINKS
The University’s Academic Regulations: https://calendar.ualberta.ca/content.php?catoid=6&navoid=806 Code of Student Behaviour: https://www.ualberta.ca/governance/resources/policies-standards-and-codes-of- conduct/code-of-student-behaviour
eClass: https://eclass.srv.ualberta.ca/portal/.
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TENTATIVE CLASS SCHEDULE
1 Jan 8 Introduction
Cost Terms, Concepts &
Classifications
Slides Lecture 1
Reading Chapters 1, 2
Problems Chapter 2: 10, 13, 19, 24, 25
2 Jan 15 Cost Behaviour
Cost-Volume-Profit (CVP) Relationships
Slides Lecture 2
Reading Chapters 3, Appendix 3-A, 4
Problems Chapter 3: 13, 19, 20; Chapter 4: 21, 25, 34
3 Jan 22 Case1: Protect-A-Plate Venture Product Costing (Job-order Costing)
Slides Lecture 3
Reading Chapter 5
Problems Chapter 5: 16, 19, 25, 26, 27
Assignment Due Case 1 write-up
4 Jan 29 Activity-Based Costing
Slides Lecture 4
Reading Chapter 7, Appendix 7-A
Problems Chapter 7: 13, 19, A-5
7 5 Feb 5 Case 2: Asante Teaching
Hospital
Absorption and Variable costing
Slides Lecture 5
Reading Chapter 8
Problems Chapter 8: 12, 16, 18
Assignment Due Case 2 write-up
6 Feb 12 MIDTERM EXAM
9:00 – 11:00 am in regular classroom
Chapters 1-5, 7
7 Feb 19 No Class Reading Week
8 Feb 26 Static Budgets
Slides Lecture 6
Reading Chapter 9
Problems Chapter 9: 24
9 Mar 4 Flexible Budgets, Variance Analysis, and Standard Costs
Slides Lecture 7
Reading Chapters 9, 10
Problems Chapter 9: 25, 28; Chapter 10: 19, 29, 38, 40
8 10 Mar 11 Case 3: Danshui Plant No. 2
Management Control
Slides Lecture 8
Reading Chapter 11
Problems Chapter 11: 18, 20
Assignment Due Case 3 write-up
11 Mar 18 Transfer Prices Accounting Ethics
Slides Lecture 9
Reading Chapter 11, Appendix 11A
Problems Chapter 11: A-10, A-11, A-13
12 Mar 25 Case 4: A Letter from Prison Relevant Costs for Decision Making
Slides Lecture 10
Reading Chapter 12
Problems Chapter 12: 21, 25, 27
Assignment Due Case 4 write-up
13 April 1 Relevant Costs for Decision Making (contd.)
Slides Lecture 11
Reading Chapters 12
Problems Chapter 12: 28, 34
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14 April 8 Course wrap up & review All chapters
15 April 21 (Tuesday)
FINAL EXAM 2:00 – 4:00 pm
(exam room: to be decided)
Comprehensive
