Ba 823 - Managerial Accounting and Control

MBA 8115 Course Syllabus Managerial Control and Costing Systems

J. Mack Robinson College of Business Georgia State University

Course Overview

This course examines a wide range of fundamental managerial techniques used by companies in their internal planning and control functions. In particular, it focuses on (a) techniques useful in analyzing and managing costs and profits; (b) control systems (e.g., performance evaluation) that cater to large and decentralized business enterprises. In addition to building a basic knowledge base of managerial control and costing systems, students are expected to develop analytical skills necessary for making cost-related decisions and evaluating alternative design of control systems.

Scope and Learning Objectives

This course covers some fundamental methods used for (a) costing products, services, programs, projects, departments and other operational units and cost objects, and (b) tracking and reporting performance of internal operations. In addition, this course deals with how in practice the generated reports are used for evaluating performance and controlling operations.

Key topics include those related to the design and implementation of firms’ internal managerial control and costing systems, such as absorption costing, activity-based costing, costing for pricing decisions, budgeting, performance measurement systems, balanced scorecard, and transfer pricing. The course also explores the behavior patterns stimulated by such reporting and budgeting systems. The primary emphasis is on developing the understanding, insights and skills needed to effectively use accounting and managerial reports and other available information to appropriately analyze costs and profits, and evaluate managers' performances and control operations.

After completing this course, students should be able to: . identify and use appropriate cost perspective to make assorted management decisions; . understand breakeven analysis and the implications of cost structure

1 . understand and appreciate the valuable roles of managerial control systems in business organizations; . understand and apply basic techniques in budgeting, performance measurement, and transfer pricing; . develop a conceptual framework for analyzing strengths and weaknesses of various practices of managerial decision-making and control.

A list of detailed learning objectives based on the textbook is provided at the end of the syllabus.

Course Materials

 Textbook: Managerial Accounting, 12th Ed. (or 11th Ed.) by Garrison, Noreen and Brewer. McGraw-Hill/Irwin.  Other course materials are made available through uLearn (http://gsu.view.usg.edu)

Performance Evaluation and Grades

A student’s performance is evaluated based on the following criteria Grading Component Points Weight Quiz  4 12  4 6%  4 Team Project 40 20% Mid-term Exam 55 27.5% Final Exam 45 22.5% Participation 12 6 % Total 200 100%

The Robinson College of Business’ policies require the use of the plus/minus grading system. Letter grades are determined based on the following scheme:

Letter Course GPA Grade Average points A 92-100% 4.00 A- 90-91% 3.70 B+ 88-89% 3.30 B 82-87% 3.00 B- 80-81% 2.70

2 C+ 78-79% 2.30 C 72-77% 2.00 C- 70-71% 1.70 D 60-69% 1.00 F Below 60% 0.00

Quizzes and Exams

A total of five quizzes will be given at the beginning of the designated classes (see Class Schedule below for details). However, only the top four quizzes count toward you class grade. Each quiz covers the preceding sessions since the last quiz (i.e., quizzes are not cumulative) and normally takes 15-20 minutes to complete. Please note that no make-up quizzes are allowed.

The mid-term exam is scheduled one week before the Spring Break. It will be an open-book test administered in class. In addition, a take-home final exam will be given during the final exam week. The due date and other information will be provided later.

Team Projects

Each student will be assigned to a team to complete one project from a pool of nine. A lottery will be conducted to determine the choice of project for each team. Each team will present its analysis to the class and answer questions. A project report is due one week after the presentation. Detailed instructions for each team project will be provided later.

A student’s total grade on the team project is determined by combining the peer evaluation of the in-class presentation and the score on the project report assigned by the instructor.

Class Participation

Six percent of a student’s total grade will be determined based on attendance, the frequency and quality of participation in class discussion, contribution to group projects and other activities. Needless to say, active participation is not only important for an individual’s success in this class, but also vital for creating a healthy and effective collective learning environment beneficial to all of us.

3 Readings and Exercises

Unless otherwise specified, students are expected to study related textbook chapters after each class. Also, a select set of business articles are provides as additional background reading for those interested in more in-depth coverage of the topics.

A select set of problems (as listed in the last column of the Class Schedule below) from the textbook is assigned as homework exercises. It is highly recommended that you work on these problems independently after reviewing materials covered in each class. Homework exercises are not collected by the instructor for grading; instead, keys will be provided afterwards and students are encouraged to check their solutions and ask questions.

General Class Policies

. Students are expected to attend all classes except when precluded by extraordinary circumstances. Student attendance will be taken and counts towards class participation scores.

. Unless specifically stated by the instructor, all tests and assignments are to be completed by the student alone.

. No make-up exams are permitted unless the student informs the instructor of his or her absence in advance and provides excusable reasons.

. Work copied from the Internet without a proper reference will be considered plagiarism and is subject to disciplinary action as delineated in the Student Handbook.

. Assignments submitted after the specified deadlines will not be accepted and will receive zero points.

. A “W” grade will be assigned if a student withdraws before mid-semester while maintaining a passing grade. Withdrawals after the mid-semester date will results in a grade of “WF”.

Academic Honesty

4 All university and college regulations concerning academic honesty shall apply. In general, students are expected to recognize and uphold standards of intellectual and academic integrity. The university assumes as a minimum standard of conduct in academic matters that students be honest and that they submit for credit only the products of their own efforts.

It is particularly important that students read and understand the portions of the University Policy on Academic Honesty that relate to plagiarism, unauthorized collaboration, falsification, and multiple submissions. The University Policy on Academic Honesty is explained in detail in the student handbook, On Campus, available online at www.gsu.edu/oncampus. This Policy represents a core value of the University. All members of the University community are responsible for knowing and abiding by its tenets. Students are expected to carefully review the online policy prior to undertaking any research or other assignments.

University Policy on Disabilities

GSU provides accessibility and reasonable accommodations for persons with disabilities. Students with disabilities are responsible for contacting the Office of Disability Services to assess their needs. Students must identify themselves and their needs to the professor no later than the first day of class.

5 MBA 8115 CLASS SCHEDULE

Note: In the “Assignment” column, “E” refers to Exercises, “P” refers to Problems and “C” refers to Cases, all from the textbook (end of chapters).

Date Session Topic Chapter Articles Test Exercises

11th Ed. 12th Ed. Jan. 08 1 Course Ch. 1, 2 Kaplan (1984) E2-1, E2-2, E2- E2-1, E2-2, E2- overview 5, E2-6, E2-7, 5, E2-6, E2-7, P2-20 P2-20 Jan. 15 2 Product Ch. 3 Kaplan (1988) E3-3, E3-5, E3-3, E3-5, costing C3-33 C3-33 Jan. 22 3 Decision Ch. 13 Baxendale (2004) P13-20 P13-22 making Jan. 29 4 Cost Ch. 5 Anonymous (1999) Quiz 1 E5-8, P5-16, E5-10, P5-17, estimation P5-18 P5-19 Feb. 05 5 CVP analysis Ch. 6 Shapiro & Varian E6-15, E6-16, E6-10, E6-15, (1999) P6-28 P6-30 Feb. 12 6 Activity- Ch. 8 Cooper & Kaplan Quiz 2 E8-8 E8-14 based costing (1992) P8-28 P8-26 Feb. 19 7 Activity- Ch. 8 Thurston et al. (2000) based costing Feb. 26 8 Mid-term Exam Exam Mar. 04 Break

6 MBA 8115 CLASS SCHEDULE

Date Session Topic Chapter Articles Test Exercises

Mar. 11 9 Target costing App. A Cooper & Slagmulder E A-2, E A-3, P E A-2, E A-3, P (1999) A-6 A-8 Shank & Fisher (1999) Mar. 18 10 Budgeting Ch. 9 Steele & Albright P9-17, C9-23 P9-16, C9-22 (2004) Jensen (2001) Mar. 25 11 Variance Ch. 10, Kaplan (1994) Quiz 3 P10-16, P10-31 P10-17, P10-29 analysis (1) 11 Frieswick (2003) Apr. 1 12 VA (2) Ch. 10 Kaplan & Norton Balanced (1992, 1993) P10-20 P10-23 scorecard (1) Apr. 8 13 Balanced Ch. 10 Kaplan & Norton Quiz 4 scorecard (2) (1996) Gumbus (2002) Apr. 15 14 Performance Ch. 12 Dearden (1969) E12-14, P12-20 E12-13, P12-23, measurement Dearden (1987)

Apr. 22 15 Transfer App. Lee & Nefcy (1997) Quiz 5 C12-34, C15- P12-25 pricing & 12A & Kavoc & Troy (1989) 18 C12-35 allocation 12B Apr. 29 16 Final Exam Exam

7 REQUIRED LEARNING OBJECTIVES

Chapter 11th Edition 12th Edition

Chapter 1 LO1, LO2 LO1, LO2 Chapter 2 LO1, LO2, LO5, LO6, LO7, LO8 LO1, LO2, LO5, LO6, LO7, LO8 Chapter 3 LO1, LO3, LO5 LO1, LO3, LO5 Chapter 5 LO1, LO2, LO3, LO5 LO1, LO2, LO3, LO5 Chapter 6 LO1, LO2, LO3, LO4, LO5, LO6, LO7, LO8 LO1, LO2, LO3, LO4, LO5, LO6, LO7, LO8 Chapter 8 LO1, LO2, LO3, LO4, LO5, LO6 LO1, LO2, LO3, LO4, LO5 Chapter 9 LO1, LO2, LO3 LO1, LO2, LO3 Chapter 10 LO2, LO3, LO4, LO5 LO2, LO3, LO4, LO5 Chapter 11 LO1 LO1 Chapter 12 LO2, LO3, LO4 LO2, LO3, LO4, LO5 Chapter 13 LO1, LO2, LO3, LO4, LO5 LO1, LO2, LO3, LO4, LO5 Chapter 15 LO1, LO2 N/A Appendix A LO2, LO3 LO2, LO3