John Sperling School of Business

Course Design Guide

ACC/561 Version 4 Accounting

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Course Design Guide ACC/561 Version 4

Course Description
This course applies accounting tools to make management decisions. Students learn to evaluate organizational performance from accounting information. Other topics include financial statements, cost behavior, cost allocation, budgets, and control systems.

Course Topics & Objectives

Week One: Decision Making Explain the role of budgets and performance reports in the management decision-making process. Evaluate the role of ethics in accounting decision making. Evaluate relevant accounting information for business decision making.

Week Two: Financial Statements Apply the concepts, techniques, and conventions of basic financial accounting. Identify how measurement conventions affect financial reporting. Determine the relationships between the elements of the four financial statements.

Week Three: Cost Behavior Evaluate how cost behavior affects selection of cost drivers and management decisions. Analyze the cost-volume-profit relationships to predict effects of changes in sales or costs, including the break-even sales volume. Compare and contrast the different methods of measuring cost functions. Explain how cost accounting systems are used to determine the cost of a product, service, customer, or other cost objectives.

Week Four: Budgets Explain the major components, advantages, and disadvantages of a master budget. Assess the risks associated with sales forecasting. Construct an activity-based flexible budget.

Week Five: Cost Allocation Explain the methods of cost allocation. Analyze how factory overhead is applied to products. Compare and contrast uses of variable and absorption costing.

Week Six: Performance Management Evaluate how managers use control systems to achieve organizational goals. Compute return on investment, residual income, and economic value added.

Course Design Guide ACC/561 Version 4

Course Materials
Horngren, C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J. (2008). Introduction to management accounting (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. All electronic materials are available on your student website.

Recommended Weekly Point Values

Week One Individual Assignment: Guillermo Furniture Store Scenario Week Two Assessed Discussion Question: Financial Statements Learning Team Assignment: Financial Statement Analysis Week Three Assessed Discussion Question: Aunt Connies Cookies Simulation Individual Team Assignment: Practice Text Exercises Week Four Assessed Discussion Question: Master Budget Learning Team Assignment: Guillermo Furniture Store Analysis Week Five Individual Assignment: Text Exercises Week Six Individual Assignment: Final Examination Learning Team Assignment: Guillermo Furniture Store Paper All Weeks Participation & Discussion Questions Point Total

8 2 10 2 5 2 13 8 15 17 18 100

Course Design Guide ACC/561 Version 4

Week One
Decision Making Explain the role of budgets and performance reports in the management decision-making process. Evaluate the role of ethics in accounting decision making. Evaluate relevant accounting information for business decision making.

Course Assignments
1. Readings Read Ch. 1, 5 & 6 of Introduction to Management Accounting.

2. Individual Assignment: Guillermo Furniture Store Scenario Resource: Guillermo Furniture Store Scenario Read the Guillermo Furniture Store Scenario. Write a paper in no more than 700 words explaining the following: o o o How could Guillermo use budgets and performance reports in his decisionmaking process? How might ethics influence his accounting decisions? What accounting information is most relevant for Guillermo to consider when making decisions?

Format your paper consistent with APA standards.

3. Discussion Questions Prepare to discuss any of the following questions from pp. 34 & 35 of Introduction to Management Accounting: 1-5, 1-7, 1-9, 1-14, 1-17, 1-22, & 1-26. Prepare to discuss any of the following questions from p. 229 of Introduction to Management Accounting: 5-2, 5-4, 5-7, 5-16, & 5-21. Prepare to discuss any of the following questions from p. 275 of Introduction to Management Accounting: 6-3, 6-7, 6-9, 6-14, 6-18, & 6-23.

Course Design Guide ACC/561 Version 4

Week Two
Financial Statements Apply the concepts, techniques, and conventions of basic financial accounting. Identify how measurement conventions affect financial reporting. Determine the relationships between the elements of the four financial statements.

Course Assignments
1. Readings Read Ch. 15 & 16 of Introduction to Management Accounting. Review the International Accounting Standards Board (IASB) website: http://www.iasb.org/Home.htm Review the Financial Accounting Standards Board (FASB) website: http://www.fasb.org

2. Assessed Discussion Question: Financial Statements In what ways do the elements of the four financial statements interact with one another? How might changing one of the financial statements affect the other financial statements? Why is it essential to understand the relationship between the financial statements?

3. Learning Team Assignment: Financial Statement Analysis Choose three companies, one from each of the following three sectors: manufacturing, service, and retail sales. One company must be foreign. Compute the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage of each of the three companies. Write a paper in no more than 1,050 words discussing how differences in the industries and different IASB and FASB measurement conventions affect presentations. If one of the companies uses the cash basis of accounting, how would that differ from the accrual basis? Format your paper consistent with APA standards.

4. Discussion Questions Prepare to discuss any of the following questions from p. 715 of Introduction to Management Accounting: 15-3, 15-9, 15-4, & 15-15. Prepare to discuss any of the following questions from pp. 768 & 769 of Introduction to Management Accounting: 16-1, 16-9, 16-14, 16-15, 16-23, & 16-29.

Course Design Guide ACC/561 Version 4

Week Three
Cost Behavior Evaluate how cost behavior affects selection of cost drivers and management decisions. Analyze the cost-volume-profit relationships to predict effects of changes in sales or costs, including the break-even sales volume. Compare and contrast the different methods of measuring cost functions. Explain how cost accounting systems are used to determine the cost of a product, service, customer, or other cost objectives.

Course Assignments
1. Readings Read Ch. 24 of Introduction to Management Accounting.

2. Individual Assignment: Practice Text Exercises Resource: Introduction to Management Accounting Complete the following problem sets from the text: o o o o Question 2-48, CVP and Financial Statements for a Mega-Brand Company, on p. 82 Question 2-61, CVP in a Modern Manufacturing Company, on p. 87 EXCEL Application Exercise, CVP and Break-Even, on p. 89 Question 3-38, Mixed Cost, Choosing Cost Drivers, and High-Low and Visual-Fit Methods, on p. 121-122

3. Learning Team Instructions: Guillermo Furniture Store Paper Review the Week Six Assignment and begin working on the cost relationships and behaviors section for the Guillermo Furniture Store Paper.

4. Assessed Discussion Question: Aunt Connies Cookies Simulation Resource: Aunt Connies Cookies simulation Complete the Aunt Connies Cookies simulation located on the student website. Reflect on the prerogatives and choices of the manager of Aunt Connies Cookies. Write a paper in no more than 700 words explaining how Aunt Connies Cookies could use cost accounting systems to determine its product costs.

5. Discussion Questions Prepare to discuss any of the following questions from pp. 75 & 76 of Introduction to Management Accounting: 2-6, 2-9, 2-13, 2-15, 2-19, & 2-23. Prepare to discuss any the following questions from p. 118 of Introduction to Management Accounting: 3-4, 3-10, & 3-20. Prepare to discuss any of the following questions from pp. 178 & 179 of Introduction to Management Accounting: 4-2, 4-9, 4-15, 4-24, & 4-30.

Course Design Guide ACC/561 Version 4

Week Four
Budgets Explain the major components, advantages, and disadvantages of a master budget. Assess the risks associated with sales forecasting. Construct an activity-based flexible budget.

Course Assignments
1. Readings Read Ch. 7 & 8 of Introduction to Management Accounting.

2. Learning Team Assignment: Guillermo Furniture Store Analysis You are the analyst for Guillermo Furniture Store. You are asked to revise the stores flex budget by using Excel . Assume Guillermo continues doing business with his current budget. Write a budget in no more than 700 words that includes risks associated with sales forecasts and an analysis of ethical considerations in the preparation and subsequent use of the budget. Consider how the organizations code of ethics requires an ethics analysis for any performance tool. Format your paper consistent with APA standards.

3. Assessed Discussion Question: Master Budget The master budget is a detailed and comprehensive analysis of an organizations long- and short-term goals. Identify the major inputs to the master budget and the usefulness of each. Additionally, why would a company need to create a master budget? What are the advantages and disadvantages?

4. Discussion Questions Prepare to discuss any of the following questions from pp. 325 & 326 of Introduction to Management Accounting: 7-6, 7-11, & 7-19. Prepare to discuss any of the following questions from p. 367 of Introduction to Management Accounting: 8-2, 8-3, 8-5, 8-9, & 8-14.

Course Design Guide ACC/561 Version 4

Week Five
Cost Allocation Explain the methods of cost allocation. Analyze how factory overhead is applied to products. Compare and contrast uses of variable and absorption costing.

Course Assignments
1. Readings Read Ch. 12 &13 of Introduction to Management Accounting.

2. Individual Assignment: Text Exercises Resource: Introduction to Management Accounting Complete the following problem sets from the textbook and show your work. o o o o o EXCEL Application Exercise 12-59, Allocating Costs Using Direct and StepDown Methods, on p. 584 Question 13-B3, Comparison of Variable Costing and Absorption Costing, on p. 617 Question 13-45, Variable and Absorption Costing, on p. 621 Question 13-48, Overhead Variances, on p. 622 Question 13-49, Variances, on p. 622

3. Discussion Questions Prepare to discuss any of the following questions from p. 566 of Introduction to Management Accounting: 12-2, 12-5, 12-11, & 12-18. Prepare to discuss any of the following questions from p. 618 of Introduction to Management Accounting: 13-1, 13-3, 13-13, 13-16, & 13-22.

Course Design Guide ACC/561 Version 4

Week Six
Performance Management Evaluate how managers use control systems to achieve organizational goals. Compute return on investment, residual income, and economic value added.

Course Assignments
1. Readings Read Ch. 9 &10 of Introduction to Management Accounting.

2. Individual Assignment: Final Exam Resources: Final exam and assigned readings from all weeks Select the link to the final exam on your student webpage. The exam is available from the end of Week Five through the end of Week Six. Complete the final exam. Only one attempt is allowed, which is timed and must be completed in 3 hours. Results are auto-graded and sent to your facilitator. Note. Final exam questions are adapted from Introduction to Management Accounting. 3. Learning Team Assignment: Guillermo Furniture Store Paper Resource: Guillermo Furniture Store Scenario Review the Guillermo Furniture Store Scenario. Write a paper in no more than 1,400 words in which you explain the following: o How do the cost relationships and behaviors at Guillermo Furniture Store determine decision-making prerogatives for the manager? What control system might Guillermo use to help it achieve his stores organizational goals? Provide a break-even analysis on the current situation considering the possible effects of selling the flame-retardant separately. This must be presented in at least one table. Compute the return on investment, residual income, and economic value added for the current situation.

Format your paper consistent with APA standards. 4. Discussion Questions Prepare to discuss any of the following questions from pp. 414 & 415 of Introduction to Management Accounting: 9-27, 9-28, 9-30, & 9-31. Prepare to discuss any of the following questions from pp. 458 & 459 of Introduction to Management Accounting: 10-7, 10-10, 10-14, 10-24, & 10-25.