University of Alberta

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University of Alberta School of Business Department of Accounting and Business Analytics

Accounting 424 (Fall 2021)

Department of Accounting & Business Analytics Intermediate Managerial Accounting

Office: BUS 4-30B

Phone: 780-492-4839

E-mail: [email protected]

Office Hours: Monday 12:30PM – 1:30PM

Wednesday 12:30PM – 1:30PM

Or by appointment

Lecture Section: ACCTG 424 A3 MW 3:30PM – 4:50PM BUS 1-06

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.

This course incorporates the Learning Goals of the BCom Program; in particular, Critical Thinking and Quantitative Skills.

Course Materials:

Required Textbook

Cost Accounting: A Managerial Emphasis, Eighth Canadian Edition, by Horngren, Datar, Rajan, and Beaubien. Pearson Canada Inc., 2016. ISBN 978-0-13-445373-6.

Additional Course Materials

Sample exams and solutions for all recommended problems are posted in the course website.

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Course Overview:

The structure of the course is a combination of lectures and discussions 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 and problems have been assigned.

In order to keep up with the class, students should go over the assigned readings and problems prior to each class. This must then be followed by a more in-depth review of the material and a practice of recommended problems after the class.

Evaluation:

There will be 2 mid-term exams and a final exam. The weighting of these components is indicated below:

Mid-term Exam #1: 25% Wednesday, October 6 (in class) Mid-term Exam #2: 25% Wednesday, November 3 (in class)

Final Exam (cumulative): 50% Saturday, December 11 at 9:00 AM (tentative)

Total: 100%

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

Exams:

All exams are closed book. You will have 80 minutes to write each mid-term exam, and 2 hours to write the final exam. You are responsible for all assigned materials, including handouts, articles posted on eClass, and any additional materials introduced in class unless I explicitly exclude it. In particular, I strongly suggest that you attempt all assigned questions at the end of each chapter.

A student who wishes his/her exam to be re-evaluated must submit the request within 5 business days after the exam is returned.

Please bring your student ID card or other acceptable photo identification on the day you write an exam.

Absences from Exams:

In the event that a mid-term exam is missed for an acceptable reason, no make-up exam will be given. Instead, the weight assigned to the missed exam will be reallocated to the final exam.

Once you have written an exam, marks will not be reallocated due to explanations given after the fact. Therefore, if you are too ill to write an exam, please do not attempt to write it.

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If a student is absent from the final exam, he/she must obtain permission from the School’s Undergraduate Office to write a deferred final exam. If a deferred final exam is required for this course, it will be held on Friday, January 7, 2022, 12:00 – 14:00.

Class Attendance:

It is your responsibility to attend class. If you miss class for any reason, you are still responsible for all materials covered, announcements made, and handouts provided. I will not e-mail handouts distributed in class to students. So if you miss class, you will have to either come to my office to get the handouts or have another student pick them up for you.

I would like to remind you that you are required to wear a mask in a classroom unless there is a minimum distance of 2 meters between students.

There will be no class on September 6 (Labour Day), October 11 (Thanksgiving Day), November 8 (Reading Week), and November 10 (Reading Week).

Classroom Conduct:

Any student who is disruptive during class will be required to leave. Students are expected to arrive in class before the class begins and to stay until the class is over. Continual talking will not be tolerated as it is disruptive to both the instructor and fellow students. All personal communication or entertainment devices must be turned off during the class time.

Audio or video recording, digital or otherwise, 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. Student or instructor content, digital or otherwise, created and/or used within the context of the course 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 content author(s).

Code of Student Behavior:

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 Behavior (on line at http://www.uofaweb.ualberta.ca/governance/StudentAppealsRegulations.cfm) and avoid any behavior 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 Section 23.4(2) of the University Calendar.

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Content of the Course (tentative):

Topics Recommended Problems

1 Introduction to the course A review of cost terminologies (Approximate # of classes: ½)

Chapter 2 14, 15, 17, 18, 19, 20, 21

2 Job Costing System - I Chapter 4 17, 18, 22, 32, 34, 35, 37 (excluding Requirement 2c) 3 Job Costing System - II

(Activity-Based Costing)

Chapter 5 18, 25, 29, 31, 32, 33 4 Process Costing (excluding the

standard costing method)

Chapter 17 15, 16, 17, 19, 20, 21, 22, 24, 25, 30, 31, 35, 37, 39, 40 5 Spoilage, Rework, and Scrap Chapter 18 16, 17, 18, 19, 20, 24, 25, 30,

31, 32, 33, 39

6 Cost Allocation - I Chapter 14 17, 18, 20, 21, 23, 24, 25, 28, 29, 30

Mid-term Exam #1: Covering Chapters 4, 5, 17, 18, and 14

7 Cost Allocation - II Chapter 15 16, 17, 18, 20, 21, 23, 24, 25, 26, 28, 33

8 Variance Analysis - I Chapter 7 18, 19, 24, 25, 28, 31, 33, 39, 40

9 Variance Analysis - II Chapter 8 16, 17, 20, 21, 22, 23, 24, 28, 29, 39, 40

10 Variance Analysis - III Chapter 16 18, 19, 20, 21, 22, 27, 28, 29 Mid-term Exam #2: Covering Chapters 15, 7, 8, and 16

11 Relevant Cost Analysis Chapter 11 23, 24, 26, 28, 29, 33, 34 12 Capital Budgeting Chapter 20 17, 18, 22, 24, 26, 31, 33, 34,

46, 48

13 Inventory Management Chapter 19 16, 17, 18, 19, 20, 22, 27, 30, 31

Final Exam: Cumulative