COURSE SYLLABUS

School of Management
The University of Texas at Dallas
Accounting and Information Management Programs

Course: Strategic Cost Management, AIM6342.0G1

Instructor: Constantine Konstans
Semester: Spring 2005

| Course Information | Technical Requirements | Course Access | Communications |

| Student Assessment | Scholastic Dishonesty | Course Evaluation | Course Outline |

Course Information
Course Description

Instructor: Constantine Konstans, Ph.D., CPA, CMA, CIA, CFE

Professor of Accounting and Information Management
Executive Director, Institute for Excellence in Corporate Governance
Telephone: 972-883-6345
Office: SM 2.403
FAX: 972-883-5968
E-mail: Course internal email as primary contact
Web site: http://www.utdallas.edu/~konstans
Office Hours: By appointment

Course Description

This course extends the perspective of cost management/analysis from a primary focus on
tactical short-run/micro concerns to an emphasis on strategic long-run/macro issues. The
linkage between cost management/analysis and strategy is facilitated by utilizing three powerful
strategic management tools: value chain analysis, strategic positioning analysis and cost driver
analysis. Supported by these as well as by other financial and non-financial tools, cost
management analysis evolves into Strategic Cost Management (SCM). SCM exists to support
decision-makers as they develop, communicate, implement, evaluate and modify organizational
strategy.
There are three course themes:

1. Developing new ways of looking at familiar problems and concepts – an SCM look at such
familiar issues as product line profitability, make/buy or new product introduction.

2. Introducing some relatively new and/or interesting topics/tools in cost analysis that facilitate
SCM, to include but not limited to:

a. Activity Based Management/Budgeting SCM for Line of Business Evaluation

b. Economic Value to the Customer SCM for Product/Channel Decisions
c. Life Cycle Costing SCM for Sourcing Decisions
 d. Strategic Cost Drivers Technology Costing
e. Target Costing Environmental Cost
Measurement/Management
f. Value Chain Analysis Quality Cost
Measurement/Management
g. Lean Production Balanced Scorecard
h. Strategy and Management Accounting Measuring and Managing Capacity
i. Theory of Constraints and Throughput Accounting

3. Interacting with practitioners of SCM. This course is designed for students who plan to
pursue careers as management consultants, as internal consultants or as business
managers. Regardless of the career path selected, all students will benefit from exposure to
the unique perspective of contemporary practitioners. Therefore, two professional
consultants will be featured as teleconference guest lecturers on selected aspects of SCM.
In addition, recorded presentations of others will be available for students.

Course Prerequisite

The course is designed for MBA/MS students who have completed Accounting for
Managers (AIM 6305) or its equivalent.

Course Approach

The course will rely heavily on student-intensive activities. Student teams will have the
responsibility for presenting case analyses and topics as shown in the course schedule below.

Course Preparation and Participation

Each student must accept the responsibility for course preparation. Thus, for each session,
every student must study the assigned readings and analyze the assigned cases. In addition,
each student is expected to participate actively in teleconferences and “chat room” sessions.

The course uses cases extensively. In order to derive maximum benefit, it is essential that you
mentally "get inside" the case situation. Do not approach a case as you would a chapter in a
book or an article in a journal. You are not an observer but a participant. If a case centers on a
decision that needs to be made, put yourself in the shoes of the decision-maker. Feel the
frustration (s)he feels with respect to data limitations. Feel the pressure (s)he feels with respect
to difficult tradeoffs, limited resources, potential conflicts, etc. Share your ideas with others as
we work jointly to resolve the issues.

I will guide you in your case and topic presentations (see below). For topic presentations, you
are required to find and use a minimum of three references from the internet or a variety of
publications such as, but not necessarily limited to, the Journal of Cost Management, the
Journal of Management Accounting Research; Accounting, Organizations and Society; Harvard
Business Review; and Sloan Management Review. I will be available to review your plans for
these activities.
Professional Linkages

SCM represents a lucrative, important and growing area for consulting services both
domestically and internationally. SCM consulting services are provided by management
consulting firms as well as by the “Big Four” accounting firms.

Course Materials

Texts (and their abbreviations)

“BCL” COST MANAGEMENT: A STRATEGIC EMPHASIS 3d. Irwin/McGraw-Hill, 2005, by

E. J. Blocher, K. H. Chen, G. Cokins and T. W. Lin.

“CCM” CASES IN COST MANAGEMENT: A STRATEGIC EMPHASIS Second Edition.

South-Western, 2001, by J. Shank.

Textbooks and other materials can be ordered online through MBS Direct Virtual Bookstore or
Off-Campus Books web ordering site. They are also available at UTD Bookstore and Off-
Campus Books.

Back to Top

Technical Requirements
In addition to a confident level of computer and Internet literacy, certain minimum technical
requirement must be met to enable a successful learning experience. Technical requirements
include but are not limited to:

Hardware
• A Pentium processor or equivalent Mac system; Windows 98/Me/2000/XP or Mac OS
9.x or OS X 10.1.
• Internet access with 56.6 modem (minimum). A high-bandwidth connection is
recommended.
• 32 MB system Ram; 200 MB free disk space or sufficient storage
• Sound card
• CD-ROM capabilities
Software
• Internet Explorer 5.0 to 6.0 (but 5.5 SP1 not supported), or Netscape Navigator 6.2.x
(see notes) and 7.0 (4.78, 4.79 and 6.0-6.1 not supported), or AOL 7.0 and 8.0. See
browser configuration information below.
• MS Office 2000 is the minimum standard. (Microsoft software is available at a nominal
cost from the UTD/Microsoft Program. For more information, visit the Global MBA Online
Student Service web page at:
http://som.utdallas.edu/globalmba/gmba_online_services.htm).
• Virus detection/protection software (such as McAfee)
• “Plug-ins” including the most current version of RealPlayer (available at:
http://www.real.com) and Adobe Acrobat Reader (available at:
http://www.adobe.com/products/acrobat/readstep2.html)
 • A zip file expansion tool such as WinZip or Stuffit Expander (available at:
http://www.download.com).

Web Browser Configuration

For WebCT courses to work properly, you will need one of the WebCT supported
browsers listed above with JavaScript enabled and cookies enabled. It is also
important that you set the cache settings of your browser to verify web documents
“Every Time”. The methods for configuring these settings vary among browsers. Please
follow this web link provided by WebCT to tune-up your browser:
http://www.webct.com/tuneup/.

Back to Top

Course Access and Navigation

This course was developed using a web course tool called WebCT. It is to be delivered entirely
online. You will be notified by email about the course access information at the start of the
course. You’ll need to have a UTD NetID and password to access the course. If you have not
set up a UTD NetID account yet, please go to the UTD NetID page at http://netid.utdallas.edu
to initiate your account shortly before or at the start of the semester. Your UTD NetID is your
WebCT ID. It is to be used to access all of your UTD WebCT courses plus other UTD computing
systems e.g. your UTD email account. Please note that it’s required that your account
password to be updated every 6-12 months. UTD IR will send you reminding messages to
your UTD email account towards the time when your password is getting expired. To update
your password, please login at the above NetID page. For more information, please visit the
NetID FAQs page.

The URL for the course login page is: http://webct.utdallas.edu. The course may be accessed at
any time. You are required to meet all assignment and exam deadlines. Participation in
scheduled class activities is required. You should login to the course site regularly (at least three
times per week) to check course updates, and discussion board messages .

You’ll access the “My WebCT” page after you login. The page lists all courses that you have
registered for. You can click the course title to access the course Home Page which displays
several icon links. Clicking each icon link will take you to different subsidiary pages containing
the course content elements or built-in course tools. Some navigation components such as the
Navigation Bar with Course Menu on the left side, the Menu Bar and the path link on the top,
and the Action Menu on the content page can help you navigate within the course site.

To get started with a WebCT course, please see the Getting started: Student WebCT
Orientation link. For more information about WebCT tool usage, please see the WebCT Student
Help Index. Within the course site, you can always click HELP on the WebCT Menu Bar to find
information and answers. You can also check out the Orientation Center to Online Learning and
WebCT provided on WebCT’s web site. For more WebCT information and its learning
resources, visit http://www.webct.com.

If you have any problems with your UTD account or any problem with the UTD WebCT server,
you may email to: assist@utdallas.edu or call the UTD Computer Helpdesk at: 972-883-2911. If
you encounter any technical difficulties within the course site, please send an email to
gmbasupport@utdallas.edu.
Back to Top

Communications
WebCT built-in communication tools: There are four built-in communication tools to facilitate
learning, communication, and collaboration. A course conferencing system, the Discussion,
allows communication among all course participants. Discussion topics or groups can be set up
for topic discussions and homework assignments. You can use the course Mail tool to
communicate privately with the instructor and any class participants. The Chat tool can be used
for real-time communication among course participates. Please see specific information for
accessing Chat tool. Finally there is a graphic interface Whiteboard tool which allows real-time
interaction among course participants. If necessary, I will schedule times to use the Chat and/or
Whiteboard tools for office hours and/or class discussion sessions. Small groups may also use
the Chat tool for group discussions.

Interaction with Instructor: I will communicate with students mainly using the Discussion
board. Students may send personal concerns or questions to me using the course Email tool. I
will reply to student emails or Discussion board messages within 3 working days under normal
circumstances.

Emailing: Besides using the WebCT course internal email, if there is any need, students may
contact me via external regular emails. UTD provides each student with a free email account
that is to be used in all communication with university personnel. This allows the university to
maintain a high degree of confidence in the identity of all individuals corresponding and the
security of the transmitted information. Beginning September 1, 2004, the Administration has
informed faculty to require any email communications to be through UTD email accounts.

To access your UTD email, please go to: http://pipeline.utdallas.edu and login with your UTD
NetID and password (same as WebCT login). The Department of Information Resources at UTD
provides a method for students to forward email from other accounts to their UTD address and
have their UTD mail sent to other accounts. Students may go to the following URL to establish
the email forwarding if necessary: http://netid.utdallas.edu. For any assistance with UTD email
account, call 972-883-2911 or email assist@utdallas.edu.

MeetingPlace TeleConference System: UTD maintains a telephone conferencing system. All

participants in the course can use the system for teleconferences throughout the semester.
Participants access a meeting by dialing either a “972” area code number or a toll free number if
outside the Dallas area (but within the continental U.S.) with a touch tone phone. When
prompted, you will enter a code. If a teleconference is scheduled for the course, you will be
notified of the time and given access instructions. A class teleconference is usually recorded
and can be reviewed over the phone after the conference. Please see TeleConference Guide
for general instructions.

If you would like to reserve a time to meet with a group of your classmates, please send an
email one week in advance to gmbasupport@utdallas.edu. Be sure to include the course
name, student names and email addresses, choice of date, and start and end times. Once
a reservation has been made, students will receive a confirmation email with access
instructions.

Back to Top
Student Assessment
Grading Information

Team Case Analysis and Critiques 100

Team Topic Presentation and Critiques 100
Timed Final Examination 100
Possible Points 300

Translation of the total point score into a letter grade will be based on the instructor’s judgment.
The letter grade will reflect each student's performance relative to the course and standards
expected of MBA students.

Important / Time -Sensitive: Study teams will be formed immediately at the start of the course
and posted on the Discussion Board. To facilitate the process, the following information,
formatted as shown below, must be sent to the instructor immediately upon logging-in to the
course through course internal e-mail.

1. Last Name; First Name; UTD Degree Program and Expected Graduation Semester

2. Day-Time Telephone Number and FAX Number; Day and Evening e-Mail Addresses

3. Collegiate Degree(s) Earned; Year(s) Earned; Name(s) of the Granting Institution(s)

4. Number of Earned Collegiate Semester Hours of Accounting; Where Earned (Institution)

5. Name of Current Employer; Your Position or Title; Months with Employer

6. Short Summary of Prior Business Experience with Most Recent Experience First

7. A Short Statement of Your Career Objectives and How You Expect This Course to Help

Guidelines on Case Presentations

Each team will present one case during the semester. These will be assigned at the instructor’s
discretion on the basis of student interest, “first-come, first-serve”, and other criteria. Two
weeks prior to the week that a team’s case solution is due, team members should discuss the
case and develop a tentative solution using various modes of communication to include the use
of the team’s private discussion forum. One week prior to due date, team members should
provide the instructor their tentative solution using the course internal e-mail. The instructor will
provide comments for enhancing the case solution by return e-mail or other form of
communication. On the week that a team case solution is due, a team member should post the
team solution on the Discussion Board by Wednesday morning at 10 A.M. for all students to
review. By Friday at 6 P.M., the other teams will post their one-page critique of the case
solution on the Discussion Board. Team critiques should be developed through interaction
among members of the critiquing teams using their teams’ own discussion forums or other
means of communication. Critiques will represent 10% of the each team’s “Case Analysis” and
“Topic Presentation” grades. Grades will reflect the team’s ability to critically analyze the case
or topic. Teams should use the same criteria in preparing the critiques of cases and topics as
the instructor uses in grading the cases and topics (see below).

The case solution will be in two parts. The major part will be a written report that does not
exceed six pages, double-spaced exclusive of exhibits. The report should address each of the
case questions succinctly, yet completely. The second part will be a PowerPoint presentation of
the case that could be used in a traditional classroom setting. Use no more than 15 slides.

Case solutions will be graded using the following criteria:

A. Analyzing each question effectively 20

B. Identifying and evaluating alternative solutions 20
C. Linking the case to strategic issues 20
D. Organizing the case logically 20
E. Quality of the PowerPoint slides 20
Total 100

Guidelines on Topic Presentations

Each team will present one topic. The procedure for team topic presentations and critiques is
the same as for team case presentations and critiques regarding critical events and their timing,
the requirement for one-page critiques by non-presenting teams, etc. However, the timing of
case presentations will try to spread each team’s workload fairly evenly over the semester.
Topic presentations will be graded using the following criteria:

A. Organization and balance between too much and too little detail 20
B. Well researched with emphasis on the important aspects of a topic 20
C. Linking the case study to strategic issues covered in the course 20
D. “Cutting edge” developments are identified and introduced. 20
E. Quality of the PowerPoint slides 20
Total 100

Final Exam

Timed case write-up. Short case available within Course Site as an online exam. Exam must
be taken within the scheduled time window and must be completed online in 2.5 hours.

You can access the exam by clicking the Final Exam icon and then clicking the available exam
title link. The exam is timed and can only be accessed once within the scheduled time window.
Please read the on-screen instructions carefully before you click the Begin Quiz button. After the
exam is graded and released, you may go back to the exam page and click the “View scores”
button to review your exam results.

Back to Top

Scholastic Dishonesty
The University has policies and discipline procedures regarding scholastic dishonesty. Detailed
information is available on the Scholastic Dishonesty web page. All students are expected to
maintain a high level of responsibility with respect to academic honesty. Students who violate
University rules on scholastic dishonesty are subject to disciplinary penalties, including the
possibility of failure in the course and/or dismissal from the University. Since such dishonesty
harms the individual, all students and the integrity of the University, policies on scholastic
dishonesty will be strictly enforced.

Course Evaluation
As required by UTD academic regulations, every student must complete an evaluation for each
enrolled course at the end of the semester. An online instructional assessment form will be
made available for your confidential use. Please look for the course evaluation link on the
course Homepage towards the end of the course.

Back to Top

Course Outline/Schedule
Date Case (CCM) Topic/Activity Reading
(BCL)
1/10-1/16 Orientation to WebCT and Course Chapter 1
Week 1 Site. Send instructor time -
sensitive data requested in
syllabus.

Lecture #1
Cost Management: Strategic
versus Conventional Approaches –
Instructor Provides Course
Overview.

PowerPoint slides and streaming

audio available under “Course
Materials” on the course site.

Teleconference #1:1/16/05; 9:00 -

10:00 PM

Call: 972-231-5379 (or toll

free within continental USA:
1-800-910-2280). Enter the
Meeting ID as: 6342. Please
use this same info for all the
following meetings.
1/17-1/23 Lecture #2 PowerPoint slides and streaming Chapter 2
Week 2 Baldwin Bicycles ; audio available under “Course
Instructor Presents Case Materials” on the course site.
to Illustrate SCM.
1/24-1/30 Lecture #3 PowerPoint slides and streaming
Week 3 Mavis Machine Shop; audio available under “Course
Instructor Presents Case Materials” on the course site.
to Illustrate SCM
Teleconference #2: 1/30/05; 9:10
– 10:30 PM.
1/30-2/6 Case #1 Topic #1 Chapter 3
Week 4 Bridgewater Castings Cost Drivers and SCM.

2/7-2/13 Case #2 Topic #2 Chapter 4

Week 5 DairyPak Value Chain Analysis.
2/14-2/20 Case #3 Topic #3 Chapter 5
Week 6 Montclair Deep Colors Target Costing

2/21-2/27 Case #4 Topic #4 Chapter 6

Week 7 Chalice Wines Quality Cost
Measurement/Management.
2/28- 3/6 Case #5 Topic #5 Chapter7
Week 8 Tijuana Bronze Activity Based Management
Machining Budgeting

3/7-3/13 Spring Break Spring Break

3/14-3/20 Case #6 Topic #6
Jones Ironworks Learning Curve Analysis

Teleconference #3: “Live” Guest

Speaker: 3/20/05, 7:00 – 8:30 PM
3/21-3/27 Case #7 Topic #7 Chapters
Week 10 Wellington Chemicals Strategic Positioning and SCM. 15 & 17
3/28-4/3 Case #8 Topic #8 Chapter 16
Week 11 Boston Creamery Supply Chain Management and
SCM.

4/4-4/10 Case #9 Topic #9 Chapter 8

Week 12 Kinkead Equipment Technology Costing and SCM.

4/11-4/17 Lecture #4 PowerPoint slides and streaming Chapter 18

Week 13 audio available under “Course
Balanced Scorecard:
Instructor Presentation Materials” on the course site.

Teleconference #4: “Live” Guest

Speaker: 4/17/05, 7:00 – 8:30 PM
4/24- Final Exam: Timed case write-up. Short case available within
4/25 Course Site as an online exam. Exam must be taken within
Week 14 the scheduled time window and must be completed online in
2.5 hours.

Back to Top