Course Materials

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University of Alberta Faculty of Business

Department of Accounting and MIS

Accounting 424 (Winter, 2005) Intermediate Managerial Accounting

Instructor: Professor Jennifer L. Kao, Ph.D., CA

Lecture B1: 9:30 pm-10:50 pm, Mon & Wed;

Room BUS 1-09

Office: 4-30D Business Building Lecture B2: 11:00 pm-12:20 pm, Mon & Wed;

Room BUS 1-09 Phone: 492-7972

(on campus 2-7972)

AMIS Phone: 492-3053

(on campus 2-3053)

Email: [email protected] Office Hours: 12:30 pm-14:00 pm, Mon & Thu (or by appointment)

Course Description and Objectives

Accounting 424 builds on the foundation laid in Accounting 322 to study the preparation and use of cost accounting information for managerial decision-making and control purposes.

Together, these two courses provide students with the tool needed to understand and address the important problems facing management accountants today.

We will promote the use of quantitative techniques and stress the importance of considering qualitative factors. Most managerial decisions are made with less than perfect information.

Accordingly, we will also discuss analysis of information under uncertainty, an essential characteristics facing modern business practitioners.

Course Materials

Required Textbook

Cost Accounting: A Managerial Emphasis, Third Canadian Edition, by Horngren, Foster, Datar and Teall. Prentice-Hall Canada Inc., 2003, ISBN 0-13-035580-1

Recommended Textbook

Student Solution Manual accompanying the above text. This manual contains suggested solutions for all the even-numbered problems in the text. Five copies of Student Solution Manual have been placed on reserve in the Rutherford North Library.

Both the textbook and Student Solution Manual are available from the U of A bookstore.

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Supplementary Course Materials

Supplementary Course Materials can be found under the “Readings” section of Acc 424 Course Web Page (password protected). The Readings section is organized by week. For each week, you will find links to the following course materials:

Lecture Slides (in PowerPoint): to be posted at least 2 days before the scheduled lecture.

Solutions to Recommended Exercises (in Word): already posted on the Acc 424 course web page.

Structured Solutions to some of the exercises/problems taken up in class (in PowerPoint): to be posted right after the class discussion.

Roadmap (in Word) contains comments by the instructor and other relevant information about each chapter: to be posted right after we have concluded discussion of that chapter.

Sample Exams for Mid-Term 1, Mid-Term 2 and Final Exams (in Word): already posted on the course web page under Weeks 5, 10 and 13, respectively.

Solutions to Sample Exams: to be posted under Weeks 5, 10 and 13, respectively.

Course Structure and Requirements

Accounting 424 is a rigorous course. The structure of the course is a combination of lecture and discussion of problems. Difficult concepts are best illustrated through problem solving.

Many examples will be discussed in class. In addition, a number of end-of chapter exercises/

problems have been assigned. While solutions to these questions are available from the Student Solution Manual (even-numbered questions) and Acc 424 Course Web Page (under Solutions to Recommended Exercisesand Structured Solutions for selected odd-numbered questions), you are advised to solve the problems first before looking up the solutions.

In order to keep up with the class, students should go over the assigned readings and problems, lecture slides prior to each class. This must then be followed by a more in-depth review of the material and practice of problems after the class. In total, students are expected to spend approximately 6-8 hours per week outside of class.

Course Evaluation

There will be two mid-term examinations (70-minute long) and one final examination (2 hours long) in this course. Course grades are established based on the following:

Mid-Term 1 (February 9, Chapters 2, 4, 5, 17 & 18) 25 % Mid-Term 2 (March 23, Chapters 14, 15, 7, 8, part of 16) 25 % Final Examination (Cumulative, all chapters) 50 %

Total 100 %

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Course Conduct and Policy

Attendance

Class attendance is not mandatory. However, students are responsible for the material covered in missed classes. Thus, you should acquire a command of the subject similar to those who have attended the class by borrowing notes from your classmates or consulting with the instructor.

Missed Exams

A student will automatically receive a mark of zero for any missed exam unless a doctor's note or documented evidence of a family crisis is provided within two weeks from the date it is written.

If absence from mid-term is due to acceptable reasons, no make-ups will be given. Instead, the marks allocated to the missed mid-term(s) will be re-distributed to the remaining exams in the following fashion:

(1). Marks allocated to missed Mid-Term 1 will be re-allocated to Mid-Term 2 and Final Exam, in proportion to the two remaining exams’ relative weights;

(2). Marks allocated to missed Mid-Term 2 will be added to Final Exam;

(3). The missed Final Examination will be handled in accordance with the University Policy. In particular, deferred final exam should be written by the deadline established by the University.

Please note that it=s the students= responsibility to contact the instructor regarding any missed exam.

The instructor will not accept a sickness excuse or other explanations after you have physically written an exam. In other words, once an exam has been written, grades will not be re-allocated.

Exam Re-evaluation Policy

Marked exam papers will be returned within 2 weeks after an exam is written. Marking keys for Mid-terms 1 and 2 along with grades (sorted by student ID numbers) will be posted under Weeks 5 and 10 in the Readings section of Acc 424 Course Web Page.

Students are urged to review the marking keys carefully and bring to the instructor’s attention any question for review purposes right away. No exam papers will be reviewed and marks adjusted, more than one week after the paper and marking keys have been made available to the class.

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Accounting 424 Lecture B1 & B2 Timetable (Winter 2005)- Page 1 of 2

Week Dates Lecture Topics Readings In-Class Activities and Recommended Practice Problems/Exercises 1 Jan. 10

Jan. 12

1

2

Introduction to the course;

Cost terminologies -review Job Costing System – I

Chapter 2

Chapter 4

Course Administration.

Lecture Slides (Chapter 2)

Exercises: 2-23, 2-25, 2-26, 2-27, 2-29, 2-37 Lecture Slides (Chapter 4)

2 Jan. 17

Jan. 19 3

4

Job Costing System – I Job Costing System - II (Activity Based Costing)

Chapter 4 Chapter 5 Chapter 5

Exercises: 4-18, 4-21, 4-24, 4-25, 4-32, 4-33, 4-37 Lecture Slides (Chapter 5)

Exercises: 5-18, 5-27, 5-30, 5-31, 5-32, 5-35, 5-39 3 Jan. 24

Jan. 26 5 6

Process Costing Chapter 17 Lecture Slides (Chapter 17)

Exercises: 17-22, 17-23, 17-24, 17-25, 17-35, 17-37, 17-38, 17-39, 17-40

4 Jan. 31 Feb. 2

7 8

Spoilage, Rework & Scrap Chapter 18 Lecture Slides (Chapter 18)

Exercises: 18-16, 18-17, 18-19, 18-24, 18-33, 18-34, 18-35, 18-36, 18-37

5 Feb. 7 9 Cost Allocation – I Chapter 14 Lecture Slides (Chapter 14)

Feb. 9 10 Mid-Term 1 will be held in class (covering Chapters 2, 4, 5, 17, and 18)

6 Feb. 14

Feb. 16

11

12

Cost Allocation – I

Cost Allocation – II

Chapter 14

Chapter 15

Exercises: 14-17, 14-18, 14-19, 14-20, 14-24, 14-26, 14-27, 14-29, 14-30 Return Mid-Term 1

Lecture Slides (Chapter 15) Reading Week (February 21-25, 2005)

7 Feb. 28

Mar. 2

13

14

Cost Allocation – II

Variance Analysis – I

Chapter 15

Chapter 7

Exercises: 15-18, 15-23, 15-26, 15-27, 15-30, 15-33, 15-34

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Accounting 424 Lec B1 & B2 Timetable (Winter 2005)- Page 2 of 2

Week Dates Lecture Topics Readings In-Class Activities and Recommended Practice Problems/Exercises

8 Mar. 7

Mar. 9

15

16

Variance Analysis – I

Variance Analysis – II

Chapter 7

Chapter 8

Exercises: 7-19, 7-22, 7-31, 7-32, 7-33, 7-36, 7-43, 7-44 Students’ Union Election noon to 1:00 pm

9 Mar. 14

Mar. 16

17

18

Variance Analysis – II

Variance Analysis – III

Chapter 8

Chapter 16:

Part II &

Appendix

Exercises: 8-18, 8-19, 8-20, 8-24, 8-30, 8-31, 8-34, 8-41, 8-43

Exercises: 16-17, 16-18, 16-19, 16-25, 16-26, 16-28, 16-29, 16-30, 16-31, 16-37

Mar. 21 19 Relevant Cost Analysis Chapter 11, including Appendix

Exercises: 11-18, 11-19, 11-23, 11-24, 11-28, 11-31, 11-32, 11-34, 11-38, 11-42, 11-43 10

Mar. 23 20 Mid-Term 2 will be held in class (covering Chapters 14, 15, 7, 8 and 16)

Mar. 28 21 Easter Monday

11

Mar. 30 22 Capital Budgeting – I Chapter 21 Lecture Slides (Chapter 21)

Exercises: 21-17, 21-22, 21-25, 21-26, 21-28, 21-30, 21-32 Return Mid-Term 2

12 Apr. 4 Apr. 6

23 24

Capital Budgeting – II Chapter 22 Lecture Slides (Chapter 22)

Exercises: 22-16, 22-18, 22-19, 22-20, 22-22, 22-23, 22-24, 22-26, 22-28, 22-32

13 Apr. 11 Apr. 13

25 26

Inventory Management Chapter 20 Lecture Slides (Chapter 20)

Exercises: 20-16, 20-17, 20-23, 20-28, 20-31, 20-32, 20-33

Consolidated Final Exam to be held 9:00 am – 11:00 am, Saturday April 16, 2005 (covering all the chapters)

Remarks: The coverage for each lecture is approximate. The actual pace may differ somewhat, depending on the degree of difficulties encountered by students regarding a particular assigned topic. Questions expected to be taken up in class are bolded.