Chapter 6: Performance Evaluation Variance Analysis

Sample Syllabi

The sample syllabi presented here are designed for a class that meets for two 75-minute sessions per week (28 – 30 sessions per semester). The first syllabus is based on managerial accounting topics that we perceive to be the most frequently covered in the introductory course. The second syllabus incorporates financial statement analysis early in the course to provide a strong understanding of C&C Sports’ financial health as a foundation for using the company throughout the remainder of the course.

The suggested problems are designed to be easier problems that provide students an opportunity to practice basic concepts from the chapter. The assigned problems generally require students to integrate several concepts in a single problem. Syllabus 1: Managerial Accounting Topics Only

Sessio Topic Reading from text Suggested Assigned n Problems Problems 1 Accounting as a tool for Units 1.1, 1.2, and 1.3 management 2 C&C Sports Topic Focus: C&C 2-2, 2-4, 2-9 2-24, 2-26 Cost behavior, cost estimation, Sports contribution margin Units 2.1, 2.2, and 2.3 3 Breakeven analysis Units 3.1 and 3.2 3-1, 3-5, 3-11 3-14, 3-32 C-V-P analysis 4 Multi-product breakeven analysis Units 3.3 and 3.4 3-21, 3-24 3-38, 3-39, 3-43 Pricing decisions 5 C-V-P case 6 Product and period costs Units 4.1 and 4.2 4-1, 4-3, 4-5 4-24 Product cost flows 7 Job order costing Unit 4.3 4-11, 4-16 4-26, 4-27 8 Underapplied and overapplied MOH Unit 4.4 4-19, 4-21 4-30 9 Test 1 (Chapters 1 – 4) 10 Process costing Topic Focus: Process T2-2, T2-5, T2-6 T2-9 costing 11 Variable and absorption costing Topic Focus: variable T3-2, T3-6 T3-9, T3-11 and absorption costing 12 Planning and the budgeting process Units 5.1, 5.2, and 5.3 5-2, 5-3, 5-4, 5-5, 5-20 Performance standards 5-6, 5-7, 5-10, 5- Building the master budget: the 12 operating budget 13 Building the master budget: the Units 5.3 and 5.4 5-13, 5-16, 5-17, 5-40 operating budget 5-21, 5-24, 5-27 Building the master budget: the cash budget 14 Pro-forma financial statements Unit 5.5 5-38, 5-39 15 Flexible budgets Units 6.1 and 6.2 6-4, 6-6, 6-9, 6-13 6-12, 6-27 Variance analysis – direct material 16 Variance analysis – direct labor Units 6.3 and 6.4 6-14, 6-17, 6-21 6-20, 6-26, 6-31 Variance analysis – manufacturing 6-22 overhead 17 Variance analysis case 18 Activity-based costing Units 7.1 and 7.2 7-1, 7-3, 7-14, 7- 7-21, 7-25 19 19 Activity-based management Units 7.3 7-11, 7-12, T5-5 7-28, T5-9 Customer profitability Topic Focus: Customer Profitability 20 Test 2 (Chapters 5 – 7, Focus on 2 Davis and Davis, Managerial Accounting Instructor’s Manual

& 3) 21 Identifying relevant costs Units 8.1, 8.2, and 8.3 8-2, 8-7, 8-8 8-11, 8-24 Special order pricing Outsourcing 22 Allocating constrained resources Units 8.4 and 8.5 8-12, 8-17 8-27, 8-30 Keeping or eliminating operations 23 Relevant cost case 24 Capital budgeting Units 9.1 and 9.2 9-1, 9-3, 9-4, 9-6 9-20 Time value of money 25 Discounted cash flow techniques Units 9.3 and 9.4 9-10, 9-11, 9-14, 9-25, 9-27, 9-29 Other capital budgeting techniques 9-17 26 Centralized vs. decentralized Units 10.2 and 10.2 10-1, 10-5 10-26 operations Segment evaluation 27 Return on investment Units 10.3 and 10.4 10-9, 10-14, 10-18 10-28, 10-29 Residual income and EVA 28 The balanced scorecard Units 11.1, 11.2, and 11-2, 11-5, 11-8 11-16, 11-20 Benchmarking 11.3 29 Balanced scorecard case 30 Test 3 (Chapters 8 – 11)

Syllabus 2: Managerial Accounting with Financial Statement Analysis

Sessio Topic Reading from text Suggested Assigned n Problems Problems 1 Accounting as a tool for Units 1.1, 1.2, and 1.3 management 2 C&C Sports Topic Focus: C&C 12-1, 12-5, 12-6 12-14 Horizontal analysis, common-sized Sports statements Units 12.1 and 12.2 3 Ratio analysis, Industry analysis Units 12.3 and 12.4 12-8, 12-9, 12-10, 12-19, 12-24 12-11 4 Cost behavior, cost estimation, Units 2.1, 2.2, and 2.3 2-2, 2-4, 2-9 2-24, 2-26 contribution margin 5 Breakeven analysis Units 3.1 and 3.2 3-1, 3-5, 3-11 3-14, 3-32 C-V-P analysis 6 Multi-product breakeven analysis Units 3.3 and 3.4 3-21, 3-24 3-38, 3-39, 3-43 Pricing decisions 7 C-V-P case 8 Product and period costs Units 4.1 and 4.2 4-1, 4-3, 4-5 4-24 Product cost flows 9 Job order costing Unit 4.3 4-11, 4-16 4-26, 4-27 10 Underapplied and overapplied MOH Unit 4.4 4-19, 4-21 4-30 11 Test 1 (Chapters 1 – 4, 12) 12 Planning and the budgeting process Units 5.1, 5.2, and 5.3 5-2, 5-3, 5-4, 5-5, 5-31 Performance standards 5-6, 5-7, 5-10, 5-12 Building the master budget: the operating budget 13 Building the master budget: the Units 5.3 and 5.4 5-13, 5-16, 5-18, 5- 5-40 operating budget 21, 5-24, 5-27 Building the master budget: the cash budget 14 Pro-forma financial statements Unit 5.5 5-38, 5-39 15 Flexible budgets Units 6.1 and 6.2 6-4, 6-6, 6-9, 6-13 6-12, 6-27

6-2 Chapter 6: Performance Evaluation – Variance Analysis

Variance analysis – direct material 16 Variance analysis – direct labor Units 6.3 and 6.4 6-14, 6-17, 6-21, 6- 6-20, 6-26, 6-31 Variance analysis – manufacturing 22 overhead 17 Budgeting or variance analysis case 18 Activity-based costing Units 7.1 and 7.2 7-1, 7-3, 7-14, 7-19 7-21, 7-25 19 Activity-based management Units 7.3 7-16, 7-17, T5-5 7-28, T5-9 Customer profitability Topic Focus: Customer Profitability 20 Test 2 (Chapters 5 – 7) 21 Identifying relevant costs Units 8.1, 8.2, and 8.3 8-2, 8-7, 8-8 8-11, 8-24 Special order pricing Outsourcing 22 Allocating constrained resources Units 8.4 and 8.5 8-12, 8-17 8-27, 8-30 Keeping or eliminating operations 23 Relevant cost case 24 Capital budgeting Units 9.1 and 9.2 9-1, 9-3, 9-4, 9-6 9-20 Time value of money 25 Discounted cash flow techniques Units 9.3 and 9.4 9-10, 9-11, 9-14, 9- 9-25, 9-27, 9-29 Other capital budgeting techniques 17 26 Centralized vs. decentralized Units 10.2 and 10.2 10-1, 10-5 10-26 operations Segment evaluation 27 Return on investment Units 10.3 and 10.4 10-9, 10-14, 10-18 10-28, 10-29 Residual income and EVA 28 The balanced scorecard Units 11.1, 11.2, and 11-2, 11-5, 11-8 11-16, 11-20 Benchmarking 11.3 29 Balanced scorecard case 30 Test 3 (Chapters 8 – 11)