MANAGEMENT CONTROL SYSTEMS

ADM4345 N
Winter 2015
Professor

Shujun Ding, Ph.D., Associate Professor

Telfer Excellence Fellow

Office

DMS 7115

Telephone

613-562-5800 ext 4688

E-mail

Ding@telfer.uottawa.ca

Class Hours

Monday: 11:30am1:00pm
Thursday: 1:00pm2:30pm
Tuesday: 11:00am to 12:00pm, 2:00 to 3:00pm
Wednesday: 11:00am to 12:00pm, 5:00 to 6:00pm
Or by appointment

Office Hours

Class Location

Morisset Hall (MRT) 211

Prerequisite(s)

ADM3346

Program of study

Specialization in Accounting

BlackBoard

You should access the ADM4345 N folder in BlackBoard

at least twice weekly during this course.

Course Deliverables

Date

In-class participation (10%), logs (5%), and

case issue-analysis (5%)

Weight on Final Grade

20%

Mid-term examination

Saturday Feb. 28, 13:00

to 15:00, DMS1150.

20%

Group case study presentation & report

See pages 8 & 9.

30%

Peer evaluation
Final examination
Class protocol

5%
To be announced

25%
See page 6

In order to pass the course, you must normally receive at least 22.5 marks (50% weighted average) out of 45
marks for the two examinations.
Students must normally attend at least 80% of classes to qualify to sit the final examination.
This course does not have a deferred mid-term examination: see page 7.

1/14

Course Objective
ADM4345s objective is to provide students with an integrated study of the nature of control
systems, the management control environment, and the management control process.
This capstone course aims to enable students to gain knowledge, insights, and analytical skills
related to how managers go about designing, implementing, and using planning and control systems
in pursuit of an organisations strategies.
Scope of the Course
Topics include: strategic planning, discretionary costs, responsibility centres, transfer pricing,
measuring and controlling assets employed, budget preparation, analysing financial performance,
performance measurement, management compensation, and management control of projects.
Pedagogy
This is a case-study-based course which uses group discussions, student presentations, group
reports, and case-studies in its examinations. Lectures are occasionally provided to facilitate
understanding of key concepts.
Course Contribution to the Bachelor of Commerce Learning Goals
Learning Goal 1
Understand, Apply and Integrate Core Management Disciplines.
This integrative fourth year capstone course builds on the concepts in management accounting
(ADM2341) and cost accounting (ADM3346) and draws on the financial, marketing, organisation
behaviour, human resource management, strategic management, and reasoning and critical thinking
concepts covered in the first three years of the Bachelor of Commerce.
Learning Goal 2
Demonstrate Critical Thinking and Decision Making Skills.
The ambiguities, and multiple stakeholders, organizational, and industry scenarios portrayed in the
assigned case studies foster a climate of analysis, critical thinking and debate within which students
are required to assess the pros and cons of, and changes to, the interrelated components of
management control systems.
Learning Goal 3
Demonstrate Leadership, Interpersonal and Communications Skills.
Groups, each comprising 4-5 randomly-selected students, are created by the professor at the
beginning of the course. These groups prepare a case report (15%) and presentation (15%) and can
also be asked to present at other times during the course. This provides multiple opportunities for
students to develop and demonstrate their leadership, interpersonal and communications skills
Learning Goal 5
Demonstrate the Ability to Perform in a Culturally Diverse Environment.
In keeping with Canadas demographics, ADM4345 students reflect a wide variety of cultural,
religious, and ethnic backgrounds. International students augment this diversity. The courses
randomly-defined groups and on-going in-class discussions provide a rich environment that
promotes multi-cultural interaction and understanding.
Learning Goal 7
Provide Value to the Business Community in a chosen Area of Specialization.
ADM4345 is a recognized course for CPA Canada.

ADM4345 N Winter 2015

2/14

Evaluation
Class participation
Logs
Case issue-analysis
Mid-term examination
Group case study presentation (15%) and report (15%)
Peer evaluation
Final examination
Total
Class protocol

10%
5%
5%
20%
30%
5%
25%
100%
see page 6

o In order to pass the course, you must normally receive at least 22.5 marks (50% weighted
average) out of 45 marks for the two exams.
o Students must normally attend at least 80% of classes to qualify to sit the final
examination.
o This course does not have a deferred mid-term examination: see page 7.
Required Text
Management Control Systems (Twelfth Edition) by R. Anthony and V. Govindarajan, Irwin, 2007.
Reference Texts
[You are not required to buy these reference texts]

Cost Accounting: A Managerial Emphasis (5th Canadian Edition) by Horngren, Foster, Datar,
and Gowing, Pearson Canada, 2011.

or
Cost Accounting: A Managerial Emphasis (4th Canadian Edition) by Horngren, Foster, Datar,
Teall, and Gowing, Pearson Canada, 2007.
Other Learning Resources
University of Ottawa Library Accounting Portal: this provides access to core accounting and
auditing resources. These resources include both print and electronic formats, found at the
University of Ottawa and on the web.
http://uottawa.ca.libguides.com/content.php?pid=13684&sid=91958

www.strategicvarianceanalysis.com: This interactive applications objective is to assist students

adopt a strategic perspective when analyzing profit variances in a multi-product setting.

www.ccataxpvcash.com: This interactive application's objective is to assist students review,

synthesize, and apply capital budgeting concepts and Canada's capital cost allowance (CCA)
rules that they have previously learned in tax, management accounting, and finance courses.

ADM4345 N Winter 2015

3/14

In-class participation (10%)

These marks apply to participation both in the pre-mid-term and in the post-mid-term cases which
will be presented by assigned groups. 25-30 different students will usually participate verbally in
case (and assigned readings) discussion during an 80 minute session. A student may earn a
maximum of 10 marks during the course for verbal contributions. Verbal contribution to the class
discussions will be evaluated as Excellent (1.25%), Good (1.0%), Satisfactory (0.7%), Poor (0%),
Worse-than-poor (-1.0%). What is rewarded is helping the class make progress as it tries to come to
grips with a given case, exercise, or assigned reading. For effective participation, students should
reflect in making their interventions as to whether:
o the point will improve the class understanding;
o the point builds upon previous analysis and commentary;
o there is a willingness to understand the comments of others;
o the point is merely repetitious;
o one is willing to recognise one's errors or the superiority of another's viewpoint.
Each student is expected to bring to class two copies of his/her case preparation notes for the case
study being discussed. One of these copies must be a hardcopy that may be collected on an ad-hoc
basis in lieu of a verbal contribution.
Logs (5%)
Class participation logs (5%) are to be maintained for any five of the pre-midterm case studies
with the objective of improving your learning through the process of reflection on the case
discussion. Within twenty-four hours of each of these five case discussions a log is to be emailed to
Professor Ding. Professor Ding will usually respond to the logs. Each log should include two brief
sections:
i) a description of how the participant contributed to the case discussion write
no contribution if you did not make a verbal contribution;
ii) what they felt were the primary learning points about management control
systems that they are taking away from the class each learning point should
commence with the phrase I learned .;
o Students are urged to write a log immediately after each class in which a case is
discussed;
o Each case participation log should not exceed 200 words in length;
o Logs are to be part of the email text. Logs submitted as attached files will be
automatically deleted and earn zero marks;
o Make sure you sign/insert your name at the bottom of the email text;
o Make sure to include ADM4345-N-LOG-case name in the emails subject line
emails without this exact subject line will be filtered as junk mail and deleted,
and will earn zero marks. Remember - use University of Ottawa email
addresses only;
o Each log will be evaluated as Good (80%-100%), Fair (50%-79%), Poor (0%);
o Late logs will earn zero marks.

ADM4345 N Winter 2015

4/14

Case issue-analysis (5%)

o After the mid-term examination each student from the non-presenting groups must submit an
email to Professor Ding before the class of each scheduled group presentation (see pages 5 and 9
of this course outline). The email should:
i) Identify what you believe to be the most significant management control system issue
highlighted by the case;
ii) Explain why you believe the issue to be significant from a management control system
perspective: your discussion should focus on the significance (a) to the case study and (b)
to similar organizations management control systems.
o The email should be less than or equal to 200 words in length;
o The case issue-analysis is to be part of the email text: a case issue-analysis
submitted as an attached file will be automatically deleted and earn zero marks;
o Make sure you sign/insert your name at the bottom of the email text;
o Make sure to include ADM4345-N-casename in the emails subject line
emails without this exact subject line will be filtered as junk mail and deleted,
and will earn zero marks. Remember - use University of Ottawa email
addresses only;
o Each case issue-analysis will be evaluated as Good (80%-100%), Fair (50%-79%), Poor
(0%);
o Late case issue-analyses will be automatically deleted and earn zero marks.
Group Case Study Presentation (15%) and Report (15%)
Each group will prepare a report and class presentation for the case study assigned to the group.
Each group member must present.
A digital copy of the report is to be emailed to the professor before the beginning of the class in
which the case is presented.
A hard-copy of the report is to be handed to the professor at the beginning of the class in which
the case is presented.
The report should be in size-12 font, double spaced, and no longer than 2,000 words plus no
more than 3 appendices.
The report is to be professionally written. It is recommended that you review the guidance to reportwriting that is provided at the following web site, http://arts.uottawa.ca/en/writing-guides. We thank
the Faculty of Arts for allowing Telfer School of Management students to consult this site.
Peer evaluation (5%)
At the end of the course each student will assess his/her group members by awarding a mark out of 5
with supporting rationale. This evaluation should be sent to the professor and will remain
confidential.
Class seating arrangement
To facilitate correct identification of students for class participation marks and student-to-student
recognition/interaction, you are asked to:
use the same seat location throughout the course;
always bring your tent-card to class and place it on the desk in front of you; no tent-card, no
class participation.
ADM4345 N Winter 2015

5/14

Attendance at classes
Please be reminded of the university policy that says attendance at lectures is mandatory, and that a
student can be prevented from taking a final exam if the professor deems that the student has not
attended a sufficient number of lectures. Students must normally attend at least 80% of ADM4345s
classes to qualify to sit the final examination. Class attendance will be monitored and recorded.
Class protocol
Students are expected to behave in a courteous manner during classes and in their email
communications with one another and the professor.
Discourteous behaviour includes disrupting/distracting the class or any members of the class by:

Arriving late at class;

Distracting other students by using a laptop, tablet, or other communication device to view
materials that are not directly related to ADM4345;

Using a cell phone during class;

A cell phone ringing during class;

Allowing a cell phone to ring during class;

Using University of Ottawa email to send inappropriate emails;

Unauthorized video and/or audio recording in class or in the professors office;

Frivolous requests to review a mid-term exam.

The professor reserves the right to deduct marks from the overall course mark for discourteous
behaviour: 0.5 to 2 marks for a minor infraction; 2 to 10 marks for repeat or serious infractions. The
latter will be reported to the Director of the Undergraduate Program.
Drops and adds
Groups will be formed early in the course. Therefore, we ask that you commit yourself to the course
early and that groups stay intact throughout the term. If you do decide to drop the course, please let
your group members and professor know immediately.
Examinations
Individual performance on the ADM4345 final examination accounts for 25% of the course grade.
The final examination can be drawn from all of the course materials. The assigned textbook
chapters, assigned case studies, additional readings, additional slides, group research topics, and inclass discussions are examinable. The final examination may include a case study that was discussed
or presented during the course.
Please note the rule for lateness at the end of an examination and in-class tests: exams of students
who do not stop writing at the stop writing, drop your pens and pencils order will not be graded.
Should you have any questions about your final exam grade, request an appointment with Professor
Ding to review your exam in the first month of the following semester.
The academic regulations regarding absence from the final examination are available at:
http://web5.uottawa.ca/admingov/regulations.html#r55

ADM4345 N Winter 2015

6/14

Missed exam
Students are expected to write the mid-term examination as scheduled. Students who miss the
midterm for a documented valid reason (serious illness, death in the family, or religious holiday)
will have their midterm or quiz mark added to the final exam: there are no deferred (make-up) midterm examinations in ADM4345. Personal or work-related reasons do not constitute valid excuses
for missing a scheduled assignment, quiz, or exam [see
http://web5.uottawa.ca/admingov/regulations.html#r55].
Students who miss a final examination will normally obtain a failing grade for the course. A student
may apply for prior authorization to be absent from an examination in exceptional circumstances
(see the Telfer School calendar for details).
Requests to review the Mid-Term Examination
In accordance with university regulations a request to have the mid-term examination reviewed must
be made within 5 working days of the exam being returned to students. Any request to have the midterm examination reviewed for re-marking purposes can only be made if the exam was written in
non-erasable pen. Such a request must be in writing and include a clear justification why the request
is being submitted. The students exam will then be reviewed to ensure that it was marked on a
consistent basis with the other ADM4345 students exams. A students mark will be changed
(increased or decreased) only if (i) there is evidence of inconsistent marking, (ii) there is a
computational error in the addition of marks or (iii) if a particular part of the students exam was
inadvertently not assessed. Frivolous requests may result in a loss of marks and may be referred to
the Undergraduate Program Director.
Release of course grade
Only the Undergraduate Office is permitted to release course grades.
Professors are not permitted to release course grades.
It is inappropriate for students to contact the professor after the final examination and before the
course grades are released/published by the Undergraduate Office.

ADM4345 N Winter 2015

7/14

ADM4345 N WINTER 2015 SCHEDULE

(Revisions may be made as appropriate)
Case studies/problems/readings may be introduced for teaching purposes as appropriate and students will be responsible for their content.

Week
beginning

Topics
Class organization.
The Case Study Method.

Mon. Jan. 12

Mon. Feb. 2

Mon. Feb. 9

MCS Ch. 1.
MAP 6600

MCS Ch. 2.

Mini-Case (handout)

Mintzbergs
articles*

Understanding
Strategies.

Nucor Corporation (A)

Controls for
Differentiated Strategies.
Mon. Jan. 26

Case studies to be prepared for

class; and hand-in deliverables.

(reprint courtesy of CPA

Canada)

The Nature
of
Management
Control
Systems.

Mon. Jan.19

Readings to be
completed for
class

MCS Ch. 13.

Lecture

Rendell Company

Behaviour
in
Organisations.

MCS Ch. 3.
Simons article*

Responsibility Centers:
Revenue And
Expense
Centers.

Southwest Airlines Corporation

Westport Electric Corporation

MCS Chs. 4&5.

Vershire Company

MCS Ch 5.

Abrahams Company

Profit
Centers.

Reading week, from February 15 to 21

Mon. Feb. 23

Transfer Pricing

ADM4345 N Winter 2015

MCS Chs 5 & 6

Birch Paper Company

8/14

Week
beginning

Readings to be
completed for
class

Topics

Case studies to be prepared for

class; and hand-in deliverables.

and
Profit Centers.
Sat. February 28

13:00 to 15:00,

MCS Chs 5 & 6

DMS1150,

Mid-term Examination, two hours

Project evaluation.

Capital Budgeting Analysis

www.ccataxpvcash.com

Horngren et al, Problem 22.36

(adapted) (handout)

Mon. Mar. 2

Mon. Mar. 9

North Country Auto

Analyzing
Financial
Performance
Reports.

MCS Ch. 10.

Pelican
Instruments
Inc

www.strategicvarianceanalysis.com

Mon. Mar. 16

Measuring
and
Controlling
Assets
Employed.

Groups 1 & 2
MCS Ch. 7.

Aloha Products**
Groups 3 & 4
Quality Metal Service Centre**
Groups 5 & 6
Allied Office Products**

Mon. Mar. 23
***

Strategic
Planning.

MCS Ch. 8.

Groups 7 & 8
Hasbro Interactive**

Mon. Mar. 30

Budget Preparation.

Performance
Measurement.

MCS Ch. 11.

Enager Industries, Inc**

Management
Compensation.

MCS Ch. 12.

Group 11: Wayside Inns, Inc**

Thur. Apr. 9
Apr. 15 to 28

MCS Ch. 9.
Groups 9 & 10

Review
Official Examination Period

** Case issue-analysis email required: please see page 5 above.

*** See http://www.registrar.uottawa.ca/Default.aspx?tabid=2671 for details regarding dropping courses.

ADM4345 N Winter 2015

9/14

*The following four articles are required reading:

1) Control In An Age Of Empowerment.
https://login.proxy.bib.uottawa.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9503281996&site=ehost-live

2) Letters To The Editor: Control In Age Of Empowerment.

https://login.proxy.bib.uottawa.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=537054&site=ehost-live

3) Strategy Concept I: Five Ps For Strategy.

https://login.proxy.bib.uottawa.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4760299&site=ehost-live

4) Strategy Concept II: Another Look At Why Organizations Need Strategies.

https://login.proxy.bib.uottawa.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4760357&site=ehost-live

ADM4345 N Winter 2015

10/14

Beware of Academic Fraud

Academic fraud is an act committed by a student to distort the marking of assignments, tests, examinations
and other forms of academic evaluation. Academic fraud is neither accepted nor tolerated by the University.
Anyone found guilty of academic fraud is liable to severe academic sanctions.
Here are a few examples of academic fraud:

engaging in any form of plagiarism or cheating;

presenting falsified research data;

handing in an assignment that was not authored, in whole or in part, by the student;

submitting the same assignment in more than one course, without the written consent of the
professors concerned

In recent years, the development of the Internet has made it much easier to identify academic plagiarism. The
tools available to your professors allow them to trace the exact origin of a text on the Web, using just a few
words.
In cases where students are unsure whether they are at fault, it is their responsibility to consult the
Universitys Web site at the following address, where you will find resources, tips and tools for writing
papers and assignments:
http://web5.uottawa.ca/mcs-smc/academicintegrity/home.php
Persons who have committed or attempted to commit (or have been accomplices to) academic fraud will be
penalized. Here are some examples of the academic sanctions, which can be imposed:

a grade of F for the assignment or course in question;

an additional program requirement of between three and thirty credits;

suspension or expulsion from the School.

Please be advised that professors have been formally advised to report every suspected case of academic
fraud. In most cases of a first offence of academic fraud, the sanction applied to students who have been
found guilty is an F for the course with an additional three credits added to their program requirements.
Repeat offenders are normally expulsed from the School of Management.
Finally, the Telfer School of Management asks that students sign and submit with their deliverables the
Personal Ethics Agreement form. Two versions of this form exist: one for individual assignments, and one
for group submissions. Assignments will not be accepted or marked if this form is not submitted and
signed by all authors of the work. We hope that by making this personal commitment, all students will
understand the importance the School places on maintaining the highest standards of academic integrity. The
forms are accessible on BlackBoard.

ADM4345 N Winter 2015

11/14

Statement of Academic Integrity

Integrity is a basic value of our society and of the business world. Academic integrity is also a key value of
the Telfer School of Management. To underline its importance, all assignment, report, project, or other work
submitted in partial fulfillment of the requirements of a course at the Telfer School of Management must
include on its front page one of the following signed statements:

Please note that any submission in a course (homework, assignment, report, etc) that does not include that
signed statement will not be corrected and will get a grade of zero.

Personal Ethics Statement, Individual Assignment

By signing this Statement, I am attesting to the fact that I have reviewed the entirety of my attached work and
that I have applied all the appropriate rules of quotation and referencing in use at the Telfer School of
Management at the University of Ottawa, as well as adhered to the fraud policies outlined in the Academic
Regulations in the Universitys Undergraduate Studies Calendar. I further attest that I have knowledge of and
have respected the Beware of Plagiarism brochure found on the Telfer School of Managements
BlackBoard site.

________________
Signature

______________
Date

________________________________
Last Name (print), First Name (print)

______________
Student Number

ADM4345 N Winter 2015

12/14

Personal Ethics Statement Concerning Telfer School Assignments, Group Assignment

By signing this Statement, I am attesting to the fact that I have reviewed not only my own work, but
the work of my colleagues, in its entirety.
I attest to the fact that my own work in this project meets all of the rules of quotation and
referencing in use at the Telfer School of Management at the University of Ottawa, as well as
adheres to the fraud policies as outlined in the Academic Regulations in the Universitys
Undergraduate Studies Calendar. I further attest that I have knowledge of and have respected the
Beware of Plagiarism brochure found on the Telfer School of Managements BlackBoard site.
To the best of my knowledge, I also believe that each of my group colleagues has also met the rules
of quotation and referencing aforementioned in this Statement.
I understand that if my group assignment is submitted without a signed copy of this Personal Ethics
Statement from each group member, it will be interpreted by the Telfer School that the missing
student(s) signature is confirmation of non-participation of the aforementioned student(s) in the
required work.
______________
Signature
________________________________
Last Name (print), First Name (print)

_______________
Date
_______________
Student Number

______________
Signature
________________________________
Last Name (print), First Name (print)

_______________
Date
_______________
Student Number

______________
Signature
________________________________
Last Name (print), First Name (print)

_______________
Date
_______________
Student Number

______________
Signature
________________________________
Last Name (print), First Name (print)

_______________
Date
_______________
Student Number

______________
Signature
________________________________
Last Name (print), First Name (print)

_______________
Date
_______________
Student Number

______________
Signature
________________________________
Last Name (print), First Name (print)

_______________
Date
_______________
Student Number

ADM4345 N Winter 2015

13/14

Table of Contents
Page
MANAGEMENT CONTROL SYSTEMS .......................................................................................... 1
Course Objective .................................................................................................................................. 2
Scope of the Course.............................................................................................................................. 2
Pedagogy .............................................................................................................................................. 2
Course Contribution to the Bachelor of Commerce Learning Goals ................................................... 2
Required Text ....................................................................................................................................... 3
Reference Texts .................................................................................................................................... 3
Other Learning Resources .................................................................................................................... 3
In-class participation (10%) ................................................................................................................. 4
Logs (5%) ............................................................................................................................................. 4
Case issue-analysis (5%) ....................................................................................................................... 5
Group Case Study Presentation (15%) and Report (15%) ................................................................... 5
Peer evaluation (5%) ............................................................................................................................ 5
Class seating arrangement .................................................................................................................... 5
Attendance at classes............................................................................................................................. 6
Class protocol ....................................................................................................................................... 6
Drops and adds...................................................................................................................................... 6
Examinations ........................................................................................................................................ 6
Missed exam......................................................................................................................................... 7
Requests to review the Mid-Term Examination..................................................................................... 7
Release of course grade ........................................................................................................................ 7
ADM4345 N WINTER 2015 SCHEDULE........................................................................................... 8
Beware of Academic Fraud ................................................................................................................. 11
Personal Ethics Statement, Individual Assignment ............................................................................. 12
Personal Ethics Statement Concerning Telfer School Assignments, Group Assignment...................... 13
Table of Contents ............................................................................................................................... 14

ADM4345 N Winter 2015

14/14