Managerial Accounting 1B

Spring 2013

Course Description

Teaches the selection, use, and analysis of accounting information by managers. Covers cost accounting for manufacturing organizations, decision-making based upon accounting information, the evaluation of business segments, cost-volume analysis, responsibility accounting, standard cost systems and variance analysis. In addition, emphasis will be made to further the understanding of how the techniques apply to emerging business that are sustainable and sociall responsible. Quotes from significant individuals past and present, and direct examples of new business practices exemplifying actions of social responsibility will be incorporated.

Objectives:

1. Identify the cost components of a product made by a manufacturing company: the cost of materials, labor, and overhead. Explain how product costing differs in service, merchandising, and manufacturing companies.

2.Identify and describe fixed, variable, and mixed cost behavior. Demonstrate how the relevant range and decision context affect cost behavior.

3.Use the contribution margin per unti approach to calculate the sales volume

required to break even or earn a target profit. Use the contribution margin ratio and the equation method to conduct cost-volume-profit analysis.

4.Distinguish direct costs from indirect costs, select appropriate cost drivers for allocating direct costs, and recognize the effects of cost allocation.

5.Distinguish between unit-level, batch-level, product-level, and facility-level costs and understand how these costs affect decision making.

6.Explain how activity-based costing (ABC) improves accuracy in determining the cost of products and services

7. Describe the budgeting process and the benefits it provides

8. Describe flexible and static budgets; compute and interpret budget variances

9. Describe the differences among cost, profit, and investment centers. Identify factors that affect return on investment.

10. Explain the time value of money concept and apply it to capital investment decisions. Identify cash flows associated

11. Describe the nature and treatment of product cost information for manufacturing and service companies

12. Distinguish between job-order and process cost systems

13. Differentiate between horizontal and vertical analysis. Calculate ratios for assessing a company’s liquidity, solvency and management effectiveness.

14. Identify the types of business events that are reported in the three sections of the statements of cash flow; operating, financing and investing

Student Learning Outcomes (SLO)

Students should be able to:

Assessment 1

-Use fixed, variable, mixed costs, and distinguishes direct and indirect costs in decision making for; service, merchandising and manufacturing businesses. Calculate contribution margin to determine break-even and profitability.

Assessment 2

-Use activity based costing and just-in-time inventory management financial analysis. Prepare flexible and static budgets; compute variances. Interpret variances for actual vs. static and flexible budgets.

Assessment 3

- Calculate present and future value of money; apply in capital investment for cash flow decision. Prepare horizontal and vertical analysis of financial statement and determine cash flow within; operating, financing and investing activities. Prepare financial statement analysis using financial ratios and determine effectiveness of business as compared to industry.

Textbooks and Supplies

1. Text

Managerial Accounting , 14/e , Garrison, Noreen, Brewer, McGraw-Hill, ISBN: 13:978-0-07-811100 Copyright year: 2011

The text will be available at the Cabrillo Bookstore approximately two weeks before the semester begins. You may also buy the text online from Amazon, McGraw-Hill, Barnes & Noble and half.com (owned by E-Bay). Be aware that it may take 3-4 weeks to receive a text purchased online. Therefore, be sure to order several weeks before the semester begins; lack of a text does not warrant extension of assignment/quiz due dates. Another alternative is to purchase the text as an e-book from the publisher.

2. McGraw-Hill's CONNECT™

This is a McGraw-Hill product to be used for online homework submission and grading. This program automatically grades assignments and provides immediate feedback so you know if you are doing the work accurately. See the publisher's website for information. Follow the instructions on the publisher's site to finalize the purchase and registration. (URL Link is in available directly through Cabrillo BlackBoard)

3.Handheld calculator

4.User Name and Password in the Computer Technology Center OR off-campus access to the Internet

5.Print Card, if using the Computer Technology Center

6.SCANTRON input answer sheets, Form No 882-E (will be needed for each assessment, with the exception of the final project)

Course Requirements:

Since each person has valuable life and vocational experiences to share, attendance is extremely important and creates a more interesting and dynamic class. Many class discussions will be related to the homework/discussion assignments; therefore, it is expected that students will attend and participate in all class sessions with all assignments prepared

professionally and accurately. You are expected to attend class, and successfully achieve the student learning outcomes for each major milestone of the course. The student is responsible for all material covered in class, late assignments will not be accepted. Material covered in class may not be in the textbook, and could be included in exams. If you are not present when materials are discussed, assigned or distributed in class, it is your responsibility to obtain materials from other members of the class.

Classroom Student Responsibilities:

The conduct in the classroom will be in accordance with the Cabrillo Student Rights and Responsibilities , AR 6110, Revised September 2006. In addition, there will be NO allowance for cheating. The first incident of cheating will result in an immediate “F”, the second will result in immediate removal from the course. “This is a learning environment, the best learning occurs through mistakes, and therefore at all times the work during the course should be from the student.”

Cooperative Learning:

To respect our right to the best possible learning environment, classroom disruptions will not be tolerated, please:

Turn Off cell phones, pagers, etc before class (or as a minimum have on silent, vibrate mode. No text messaging is allowed during class. Text messaging will result in dismissal from class session, and recorded as an absence/non-participation.

If you arrive late or leave early, sit near the door Do NOT carry on side conversations when I, or others are speaking Eat before or after—not during class (only water is allowed in the

classroom)

Attendance at First Class Meeting

Per Cabrillo College Academic Policies and Procedures: “Students who do not attend the first class meeting may be dropped and their seats filled by other students on the waiting list. If a student is unable to attend

the first class meeting, but attends another section or makes other accommodations with the instructor, it is his/her responsibility to notify the instructor personally or in writing prior. Students should not, however, assume that they will be dropped. It is the student’s responsibility to officially drop a course using WebAdvisor online registration. If the instructor does drop the student from the class, there is no automatic refund or reversal of charges. The student must drop by the deadline during he first two weeks of instruction for the full-term class.” No exceptions will be made to this policy.

Attendance/Participation:

This course requires active participation each day of class so it is important for you to attend every class session, arrive on time, and come prepared. Your participation not only enhances your own learning, it benefits other students in the class, especially when the class is doing group work. Your level of participation is reflected in your grade and since you can’t participate if you are not in class, absences will also be reflected in your grade.

Attendance Policy:

Per Cabrillo College Academic Policies and Procedures: “Students are expected to attend all classes and use the on-line labs via WebCT Blackboard learning systems. Students who are absent because of illness should personally contact the instructor. Illness related absences do not relieve students from the responsibility of making up any work missed. It is the responsibility of the student to obtain information from the on-line course syllabus schedule, and WebCT Blackboard learning systems concerning missed work and see that it is completed and turned in on time or within a the timeframe set by the instructor and the student. Class hours of absence are considered excessive when they total more than the number of hours of full-time class meets during each week of the 16 week semester. Excessive absence from class will constitute reason for the instructor to drop a student from the class. However, it is the student’s responsibility to officially withdraw from the class by published deadlines to avoid failing grades.”

Consequences for Disruptive Behavior:

First incident (not severe) – discussion and verbal warning Second incident – a) dismissed for the remainder of the class and possibly for the next class period. b) A disruptive behavior report will be written and sent to the Dean of Student Services c) Division Dean will be informed d) a meeting during office hours will be required to write up an agreement on future behavior in class. Third incident – a) dropped from the class.* b) Disruptive Behavior Report will be written and sent to the Dean of Student Services. c) Division Dean will also be informed.

SEVERE CLAUSE – Severe acts of disruption, lack of respect, such as with the use of a racial slur or an issue of sexual harassment or physical violence could be cause for an immediate drop from the class and a Disruptive Behavior Report sent to the Dean of Student Services and other college and legal authorities.

Sexual Harassment Issues

Sexual harassment is against the law, against school board policy, is disruptive and not tolerated under any circumstances in my class. Any student who feels he/she is being harassed in my class is encouraged to report the situation to me immediately. Any student engaging in sexual harassment may be dropped from class and reported to the Dean of Student Services for further disciplinary action, may include an investigation by law enforcement officials as well as College officials.

Disabilities/Special Needs:

Students needing accommodations should contact the instructor ASAP. As required by the Americans with Disabilities Act (ADA), accommodations are provided to ensure equal opportunity for students with verified disabilities. If you need assistance with an accommodation, please contact Disabled Student Services, Room 1073, Learning Resources Center, 479-6379, or Learning Skills Program, 479-6220. A Learning Skills specialist is also available at the Watsonville. Center Student Resource Center, 477-5134.

Accommodations:

If you have difficulty seeing or hearing, or mobility difficulty, please let me know so that you can be seated appropriately.

As small changes can make the difference between frustration and success, please let the instructor know if you are having difficulty with the accessibility of materials or the class.

If you have an accommodations letter, please give the instructor a copy and meet with the instructor to discuss any accommodations you need to be successful in this class.

Veterans Services Overview

Cabrillo College provides assistance in obtaining your educational goals:

Contact: Patricia Reyes, Veterans Certifying Offical Phone: (831) 477-5697 Location: Admissions & Records, Bldg. 100, Window 4...do not wait in line!

Academic Counseling

Personal Counseling

Special Programs

(Homework/Assessment)

Homework:

Accounting 1B is intense and will require more work than most classes. Most learning occurs OUTSIDE the classroom, which means you can only master the subject through hard work—doing assignments, reading the text, working the problems and exercises, and preparing the discussion topics for group discussion. Students who apply themselves succeed in this class: student’s can succeed if you follow effective time management and make the course a priority for your expansion of knowledge. All chapters, will be discussed. Selected exercises and/or problems will be assigned and must be completed using McGraw Hill Connect™. Submit your solutions via the McGraw-Hill Connect™(URL is through Cabrillo Blackboard). Managerial Accounting (Garrison,Noreen, Brewer,13th edition):

Discussion Topics:

Note: on the Tentative schedule there are several “ Group Discussion Topics” assigned from the Managerial Accounting textbook. It is critical you have reviewed the material prior to the class meeting, and are prepared to add constructed dialog to the group discussions. In addition, have any necessary ratios, or analysis completed prior to class. Your analysis will be collected at the end of each class that a discussion is assigned. Be prepare to present the results of the group discussion as an individual representing the summary of the group conclusions. This is a critical part of the course, and you will need to have your completed assignment ready to turn-in on the day of the discussion/presentation.

Assessments:

Four (4) Assessments will be given, including the Final, plus one chapter quiz . Assessments will consist mostly of multiple-choice questions but may include matching, terminology, problem solving, computations, budgets, cost analysis, written analysis, ratios etc. See the Tentative schedule for assessment dates. Assessments will be separated into chapters. Assessments are linked to Student Learning Outcomes listed on course home page. No make-ups will be given for late exams. (Note: Exams will be given using SCANTRON form 882-E. If there is an exception it will be announced during class and updated on this website.)

SCHEDULE:

Please note: This is a summary of the tentative schedule and is subject to change during the semester. Changes will be announced, posted on

this website, and written on the whiteboard at the beginning of class when the change is announced.

Assignment due dates will be provided Cabrillo Blackboard/McGrawHill

CONNECT, and updated on the course website.

Please note – This is a summary of the tentative schedule. In the Managerial Accounting text E=Exercise and P=Problem; these are located at the end of each chapter. In addition, there may be research and/or discussions topics, and change in the weeks chapters are covered in class, changes will updated on the this Website, Blackboard, and announced in class. Note: there may be possible changes to case studies assigned.

Week Date Chap Topic Assignment

1 1 Introduction to

Managerial Accounting (Ethics)

Case Study: The Case of Bad

News

15

Financial

Statement/Ratio Analysis E15-1, E15-2, E15-3, E15-4, E15-

6, E15-7, E15-8, E15-9, P15-11,

P15-12

2 2 Cost Terms and

Concepts

Quiz Chap 15 (online)

E2-1, E2-2, E2-3, E2-4, E2-5, E2-

6, E2-7, E2-8, E2-9, E2-12

3 2 Cost Terms and

Concepts Due Quiz Chap 15 (online,

Cabrillo Blackboard, Chapter

15 Review)

P2-14, P2-16, P2-18

Case Study; Maria Chavez

Catering, analysis of mixed

costs

3 3 Systems Design - Job

Costing

E3-1,E-3-2, E3-3, E3-4, E3-5, E3-

6, E3-8, E3-9, E3-10,E3-12, E3-

18 P3-24, P3-27

4 3 Systems Design - Job

Costing (cont) Due: Case Study; Maria Chavez

Catering, analysis of mixed

costs

Case Study: Harvard Business

Case (Youngstown)

4 Systems Design -

Process Costing E4-2, E4-3, E4-4, E4-6, E4-7,

Pr4-18

5 4 Systems Design -

Process Costing (cont) Due: Case Study; Harvard Business Study

Case Study; (Lenko Products)

4 Appendix 4B Service

Dept Allocations Pr4B-6

Due: Case Study; (Lenko

Products)

6 Assessment Chapters

2,3 & 4 95 points

5 Cost/Volume/ Profit E5-1, E5-2, E5-4, E5-5, E5-6, E5-

7, E5-8, E5-11, E5-12

7 5 Cost/Volume/Profit (cont) Pr5-19, Pr5-23; Case study

PowerTime & Haltom

7 Activity Based Costing E7-1, E7-2, E7-3, E7-4, E7-5, E7-

7, E7-8; Due: Case study;

PowerTime & Haltom Due

8 7 Activity Based Costing

(cont) Pr7-18, Pr7-20, Case Study;

Java Coffee Roasters

8 Profit Planning E8-1, E8-2, E8-3, E8-4, E8-5, E8-

6, E8-7, E8-8, E8-9, E8-10

9 8 Profit Planning (cont) Pr8-16, Pr 8-17, In class exercise

Pr8-26

Due; Case Study; Java Coffee

Roasters

Case Study: Cabrillo Music

Review Chap 5, 7 & 8

10 Assessment Chapters 5,

7 & 8

9 Flexible Budgets and

performance analysis E9-1, E9-2, E9-3, E9-4, E9- 8,

E9-9, E9-11, E9-12

11 9 Flexible Budgets (cont.) Due: Case Study; Cabrillo

Music, Pr9-20,

Case Study; (Munchkin

Theater)

10 Standard Costs and

Operating Performance

Measures

E10-1, E10-2, E10-3, E10-4, E10-

6, E10-8,

12 Note: Holiday

10 Standard Costs (cont) Pr10-11, Pr10-15 Due: Case

Study; (Munchkin Theater)

13 12 Relevant Costs for

Decision Making E12-1, E12-2, E12-3, E12-4, E12-

5, E12-12

12 Relevant Costs (cont) Pr12-19, Pr12-19, Pr12-20

14 Assessment Chapters 9,

10 & 12

13 Capital Budgeting

Decisions E13-1, E13-2, E13-4, E13-6, E13-

11

15 14 Capital Budgeting (cont) Pr13-17, Pr13-21

Capital Budgeting (cont)

16 Final Assessment

Chapter 13 & 14, Only

Final Note: See

Calendar Tab for Final

Schedule

Grading:

Note: This is a tentative grading schedule, points and assignments will change during the

semester. You will be notified during class and on the website of the changes.

Assignment Points

Discussion: Group/Individual Case Studies (8 @

30 points ea)

240

Assessment 3 @ 90 points ea 270

Final and Chapter Quiz 80

Homework, other assignments, participation and

use of Blackboard Learning Modules

360

Total 950 pts

Grading Scale:

Percentage of Points Grade

90-100% A

80-89% B

70-79% C

60-69% D

50% and below F

Note: If you decide to drop this class, it is your responsibility to officially withdraw to avoid a letter grade. P/NP (Pass / No Pass) is

available by making arrangement with the instructor prior to the published date on the calendar for making this change.