All exams in this course will be closed book

UNIVERSITY OF ALBERTA

SCHOOL OF BUSINESS

DEPARTMENT OF ACCOUNTING AND MIS

ACCTG 424

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FALL 2008 Instructors: Dr. Florin Şabac (A2 and A3)

Mr. Le Luo (A1)

Classes

Office: BUS 3-20G (Şabac) 2-32A (Luo) A1 Bus B-9 MW 12:30-13:50 (Luo) Phone: 492-8791 (Şabac) 492-1204 (Luo) A2 Bus 1-10 MW 14:00-15:20 (Şabac) e-mail: [email protected]

[email protected]

A3 Bus 2-9 MW 15:30-16:50 (Şabac) Office

hours:

Tuesday and Thursday 11:30-12:00 or by appointment (Şabac) Tuesday 14:00-16:00 or by appointment (Luo)

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 tools 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 characteristic facing modern business practitioners.

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Your grade in this course will be based on the marks you obtain on two 70-minute midterm exams, and a two-hour comprehensive final exam. All exams in this course will be closed book. You may use a non-programmable calculator. These marks will be weighted as follows to determine your percentage mark in the course:

Midterm Exam 1 (Wednesday, October 8, in class) 25 % Midterm Exam 2 (Wednesday, November 12, in class) 25 Final Exam (consolidated, Saturday, December 6, 9:00 am) 50

Total 100 %

The location for the consolidated final exam will be determined by the Registrar’s Office.

Section 23.5.1 of the Calendar provides the University Regulations for the conduct of exams.

In particular, students writing an exam must be able to present their student ID cards or other acceptable photo identification.

Letter grades then will be assigned to the percentage marks in accordance with University Regulations [Section 23.4(4) of the University Calendar].Grades in this course will be based on a combination of absolute achievement and relative performance.

Absence from Exams

If a student is absent from a midterm exam for a legitimate and adequately documented reason, the weight of the missed exam will be reallocated 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 Undergraduate Office to write a deferred final exam. If a deferred final exam is required for this course, it will be held at 9:00 a.m. on Friday, January 9, location TBA.

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 a 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.

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Cost Accounting: A Managerial Emphasis, Fourth Canadian Edition, by Horngren, Foster, Datar, Teall, and Gowing. Pearson Education Canada Inc., 2006.

Additional Course Materials

Student Solution Manual accompanying the above text. This manual contains suggested solutions for all the even-numbered problems in the text. Several copies of the Student Solution Manual have been placed on reserved in the Rutherford North Library. Sample exams and solutions for all recommended problems are provided on the course web page.

Overview of Course:

The classes will be a combination of lectures and discussions of problems. Most of the concepts and techniques taught in this course are best illustrated and learned through problem solving. Therefore, we will analyze many problems in class. In addition to attending the classes, it is expected that you will read the relevant chapter of the textbook before coming to

class. If specific questions have been assigned in advance, you should be prepared to discuss them.

Upon completion of each chapter, you should work on the recommended questions from the textbook. You can check your answers against the solutions available from the course web page.

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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 (available online at http://www.uofaweb.ualberta.ca/secretariat/studentappeals.cfm) 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.

Policy about course outlines can be found in Section 23.4(2) of the University Calendar.

TOPIC OUTLINE

Topics Recommended Problems

1 Introduction to the course

Review of cost terminologies Chapter 2 23, 25, 26, 27, 29, 37 2 Job Costing System - I Chapter 4 18, 21, 24, 25, 32, 33, 37 3 Job Costing System – II

(Activity Based Costing)

Chapter 5 18, 27, 30, 31, 32, 35, 39

4 Process Costing Chapter 17 22, 23, 24, 25, 35, 37, 38, 39, 40 5 Spoilage, Rework, and Scrap Chapter 18 16, 17, 19, 24, 33, 34, 35, 36, 37 6 Cost Allocation - I Chapter 14 17, 18, 19, 20, 24, 26, 27, 29, 30 7 Cost Allocation – II Chapter 15 18, 23, 26, 27, 30, 33, 34

8 Variance Analysis - I Chapter 7 Chapter 16 (Appendix)

19, 22, 31, 32, 33, 36, 43, 44 25, 26, 37

9 Variance Analysis – II Chapter 8 18, 19, 20, 24, 30, 31, 34, 41, 43 10 Variance Analysis - III Chapter 16 17, 18, 19, 28, 29, 30, 31

11 Relevant Cost Analysis Chapter 11 18, 19, 23, 24, 28, 31, 32, 34, 38, 42, 43

12 Capital Budgeting - I Chapter 21 17, 22, 25, 26, 28, 30, 32

13 Capital Budgeting - II Chapter 22 16, 18, 19, 20, 22, 23, 24, 26, 28, 32 14 Inventory Management Chapter 20 16, 17, 23, 28, 31, 32, 33