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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 202-2"
COURSE NAME: "Managerial Accounting"
SEMESTER & YEAR: Spring 2014
SYLLABUS

INSTRUCTOR: Silvia Pulino
EMAIL: [email protected]
 HOURS: TTH 1:30 PM 2:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisite: FIN 201
OFFICE HOURS: By appointment
COURSE DESCRIPTION:

This course is intended to provide an introduction to how accounting fits into the management process and decision making.  Cost-volume relations and costs relevant to management are examined.  Process costing and job costing are discussed.  Master budgets, flexible budgets and responsibility accounting will be covered.

Highlihgts: the program includes a group project in which students will analyze the financial performance of a real company and make an investment recommendation based on their findings. The course includes also three sessions in the Computer Lab during which students will develop a model to forecast sales and prepare Budgeted Financial Statements for a company.

Pre-requisite:  FIN 201 Financial Accounting.
SUMMARY OF COURSE CONTENT:

Review of Financial Accounting (Recording Business Transactions, The Adjusting Process, Completing the Accounting Cycle, Merchandising Operations, Merchandise Inventory, The Balance Sheet). The Statement of Cash Flows. Financial Statement Analysis. Job Costing. Process Costing. Activity-Based Costing and Other Cost Management Tools. Cost-Volume-Profit Analysis. The Master Budget and Responsibility Accounting. Flexible Budgets and Standard Costs. Short-Term  Business Decisions. Capital Investment Decisions and Time Value of Money.

In addition, students will analyse three HBS cases: Lowes Companies (financial statement analysis), Destin Brass (evaluating alternative costing methods), Monterrey Manufacturing Company (understanding the relationship between costing methods and financial reporting).
LEARNING OUTCOMES:

Students having successfully completed the course should be able to:

  • Prepare and interpret simple financial statements (income statement, balance sheet and statement of cash flows)
  • Distinguish financial accounting from managerial accounting
  • Identify trends in the business environment and use cost-benefit analysis to make business decisions
  • Identify ethical issues in managerial accounting decisions
  • Distinguish between job costing and process costing and use each method as appropriate to determine cost of goods sold
  • Use cost-volume-profit analysis to compute breakeven points and to perform sensitivity analyses
  • Prepare operating and financial budgets and use sensitivity analysis in budgeting
  • Prepare a flexible budget and use it to show why actual results differ from the static budget
  • Use activity-based management (ABM) to make business decisions
  • Appropriately use payback, accounting rate of return and discounted cash flow models to make short- and long-term capital budgeting decisions
TEXTBOOK:
NONE
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Class preparation and participation The class participation grade will reflect preparation, attendance and quality and frequency of participation. Class preparation will require students to read all the assigned material and, whenever possible, to relate it to current events. Assignments and deadlines will be posted on Moodle. Students are required to sign up and keep up to date with all Moodle postings for the course. The instructor may also indicate university open lectures that are relevant to the course; students are expected to attend such lectures (unless there is a scheduling clash with another course) as part of their class participation activities. 20%
In-class minitestsAt the conclusion of each topic there will be a one-question, 15 minute test in class. The test will consist of one problem selected from the relevant chapter in the textbook or from the Problems Workbook provided by the instructor. This portion of the grade will consist of the simple average of these tests. The dates of the tests will be posted on Moodle. A missed test will count as zero; there will be no make-up for the tests. 10%
Group Project and Reflection paperThe assessment will consist of two parts: - The Lowes’ Companies paper - Individual Reflection Paper The Reflection Paper carries no points but there will be a penalty of up to 5 points off the overall grade for not submitting it. The paper will be graded on the basis of achievement of the following objectives: • Clear, grammatical language that uses an appropriate register and technical terminology to convey the information and conclusions • Professional presentation, with clean tables and graphs where appropriate • Thorough, insightful content (background information, description of data, interpretation of data, conclusions drawn from findings) • Appropriate use of financial tools of analysis • Additional research on the industry, the company and the competitors, including share price information • Appropriate use of footnotes to reference sources 20%

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.
-ATTENDANCE REQUIREMENTS:
Students are expected to come to class and to arrive on time. Persistent absence (more than three times, wheter justified or not) or tardiness usually precludes satisfactory performance in the course, and will result in a lower class participation grade. In any case, students are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present.
ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.
SCHEDULE

The following schedule is tentative and subject to change.  The up-to-date schedule and assignments will be the one posted on Moodle.

Class

Topic / Class

Readings and Assignments

1

Introduction and Review

Course overview

Review of Financial Accounting: Recording Business Transactions, The Adjusting Process, Completing the Accounting Cycle, Merchandising Operations, Merchandise Inventory

2

Financial Accounting Review

The Balance Sheet: Internal Control and Cash, Short-Term Assets, Long-Term Assets, Liabilities, Owner’s Equity

Review chapters 1 through 12 of the textbook. Review definitions. Be prepared to answer questions.

3

The Statement of Cash Flows

5-minute student summary

Lecture

                       

Read Chapter 13 “The Statement of Cash Flows” and be ready to summarize the main ideas in class

While you are not expected to study on your own, it greatly helps learning and enhances class discussion if you know in advance what topic you are going to cover and what the main ideas are. Thus, when you read a new chapter in preparation for class discussion, you should focus on the topic, the learning objectives, and how this connects to the previous units and/or to other courses you may have already taken.

Every time we begin a new unit, I will cold call one of you to deliver an oral summary. Students who have manifestly not prepared shall receive an F for the day’s class participation.                        

4

The Statement of Cash Flows

In-class exercise

BRING HANDOUT AND CALCULATOR TO CLASS

Mini-test 1

Submit Memo regarding Group composition (see Guidelines posted on MyJCU)

5

Financial Statement Analysis

5-minute student summary

Lecture

Problems chapter 13 textbook

Read chapter 14 “Financial Statement Analysis” and be prepared to summarize the main ideas in class

6

Financial Statement Analysis

Lecture

Group Project discussion

“Practice problems” Chapter 18

Prepare HBS Case “Lowe’s Companies” for class discussion

-          Bring an outline of the paper

-          Be prepared for substantive discussion

To access the case go to http://cb.hbsp.harvard.edu/cb/access/16661801

 and follow the instructions

 

FINAL PAPER DUE BY MIDTERM

7

Introduction to Managerial Accounting

5-minute student summary

Lecture

Problems Chapter 14 textbook

Read Chapter 15 “Introduction to Managerial Accounting” and be prepared to summarize the main ideas in class

8

Job Order and Process Costing

5-minute student summary

Lecture

“Practice problems” Chapter 19

Read Chapter 16 “Job Order and Process Costing” (Job Order part only) and be prepared to summarize the main ideas in class

9

Job Costing and Process Costing

In-class exercise

“Practice problems” Chapter 20

FIRST DRAFT OF GROUP PAPER DUE

10

Job Costing and Process Costing

5-minute student summary

Lecture

Problems chapter 16 textbook (job costing only)

Read Chapter 16 “Job Order and Process Costing” (Process Costing part only) and be prepared to summarize the main ideas in class

11

Job Costing and Process Costing

In-class exercise

“Practice problems” Chapter 21

12

Mid-term review

Problems Chapter 16 textbook (process costing)

Review all units covered to date, from Introduction to Managerial Accounting to Process Costing included.

13

MID-TERM EXAM

You may bring your calculator and the formulae sheet provided by the instructor to the exam.

Review:

-          Introduction to Managerial Accounting

-          Statement of Cash Flows

-          Financial Statement Analysis

-          Job Costing

-          Process Costing

You may bring your calculator and the formulae sheet provided by the instructor to the exam

GROUP PROJECT AND REFLECTION PAPER DUE

14

Activity-Based Costing and Other Cost Management Tools

5-minute student summary

Lecture

Read Chapter 17 “Activity-Based Costing” and be prepared to summarize the main ideas in class

15

Activity-Based Costing and Other Cost Management Tools

Lecture

16

Activity-Based Costing and Other Cost Management Tools

In-class exercise

“Practice problems” Chapter 25

17

HBS Case Destin Brass

Problems Chapter 17 textbook

Prepare HBS Case Destin Brass (download from http://cb.hbsp.harvard.edu/cb/access/10169877). Answer questions at the end of the case and be prepared to discuss in class.

18

Cost-Volume-Profit Analysis

5-minute student summary

Lecture

Read Chapter 18 “Cost-Volume-Profit Analysis” and be prepared to summarize the main ideas in class

19

Cost-Volume-Profit Analysis

In-class exercise

“Practice problems” Chapter 22

20

COMPUTER LAB

The Master Budget and Responsibility Accounting

5-minute student summary

Lecture

Problems Chapter 18 textbook

Read Chapter 21 “The Master Budget” and be prepared to summarize the main ideas in class

21

COMPUTER LAB

The Master Budget and Responsibility Accounting

Lecture

22

COMPUTER LAB

The Master Budget and Responsibility Accounting

In-class exercise

“Practice problems” Chapter 23

23

HBS Case Monterrey Manufacturing Company

Problems Chapter 21 textbook

24

Flexible Budgets and Standard Costs

5-minute student summary

Lecture

Read Chapter 22 “Flexible Budgets and Standard Costs” and be prepared to summarize the main ideas in class

25

Flexible Budgets and Standard Costs

Lecture

 “Practice problems” Chapter 24

26

Short-Term  Business Decisions

5-minute student summary

Lecture

Problems Chapter 22 textbook

Read Chapter 19 “Special Business Decisions and Capital Budgeting” and be prepared to summarize the main ideas in class

27

Capital Investment Decisions and Time Value of Money

In-class exercise

Problems Chapter 19 textbook

“Practice problems” Chapter 26

Read Chapter 20 “Capital Investment Decisions and Time Value of Money” and be prepared to summarize the main ideas in class

28

REVIEW

Problems Chapter 20 textbook

FINAL COMPREHENSIVE EXAM

You may bring your calculator and the formulae sheet provided by the instructor to the exam