MBA 6211: Accounting for Decision Making Course Outline (Fall 2013)

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MBA 6211: Accounting for Decision Making Course Outline (Fall 2013) Instructor: Xue Wang (xue.wang@fisher.osu.

1 MBA 6211: Accounting for Decision Making Course Outline (Fall 2013) Instructor: Xue Wang Office: Fisher Hall 412 Office hours: Wednesdays 1-3 pm or by appointment TA: Vipin Das Review Session: Friday from 1 to 3 pm in GE 210 CLASS HOURS Section 001: Tu/Th 10:15 11:45 p.m. in GE 365 Section 002: Tu/Th 1:15 2:45 p.m. in GE 365 COURSE DESCRIPTIONS Accounting for Decision Making helps you to acquire basic accounting knowledge that is useful in the day-to-day practice of general management and other careers in business. Accounting systems provide important information for all types of organizations throughout the world. Despite their many differences, all accounting systems are built on a common foundation. Economic concepts, such as assets, liabilities, and income are used to organize information into a fairly standard set of financial statements. Bookkeeping mechanics compile financial information with the double entry system of debits and credits. Accounting conventions help guide the application of the concepts through the mechanics. This course outlines these accounting fundamentals. It then extends this knowledge by examining how accounting information and financial statements can be used to make decisions for planning and valuation. This course is self-contained students are not expected to have any prior knowledge of accounting; the only prerequisite is that students must be enrolled in the structured MBA program. Because students have different backgrounds, some students will possess significant knowledge of accounting; class discussions will attempt to bridge the wide range of background knowledge; exams will be developed so that any student can demonstrate his or her proficiency with accounting based solely on materials used in this class. Page 1 of 11

2 We will cover a considerable amount of material in this course. It is essential that you stay current with all reading and problem assignments. The course material is cumulative, making it important to keep up with the readings, complete homework assignments, and pay close attention to class discussions. Failure to follow these practices often leaves students lost and confused when it comes time to apply the material. I expect that you will come to class adequately prepared. I recommend that you prepare for each session by doing the background reading, preparing solutions to practice problems, and preparing solutions to the cases assigned. You should note that the practice problems and cases are similar in structure and degree of difficulty to questions that I will prepare for the mid-term and final exams. COURSE MATERIALS The required text for the course is the single hard-bound textbook Financial & Managerial Accounting for Decision Makers (Cambridge Business Publishers, ISBN: ) by Dyckman/Magee/Pfeiffer/Hartgraves/Morse. Course information will be communicated via Carmen and university , so it is important that you regularly check your accounts best on a daily basis. The course URL is The username and password you will use to log in to Carmen are the same ones you use to check your OSU and to register online for classes. To activate your OSU visit and click on how to activate or call 688- HELP. Lecture notes will be handed out in class or posted on Carmen. Non-HBS cases, solutions to textbook assigned problems, and other supplemental materials will be posted on Carmen. Harvard Business School cases will be available at Harvard Business Publishing: o Go to and sign up for the service. o The HBS cases of the course is registered under MBA 6211 Accounting for Decision Making : TEXTBOOK PRACTICE PROBLEMS: Practice problems from the textbook are assigned for each class session. These are not graded and will not be collected; however, solving these problems will be very helpful in solidifying the material and preparing you to move on to the next material. Solutions to the assigned problems from the textbook will be provided on the course website. ACCOUNTING CASES FINANCIAL ACCOUNTING There are ONE HBS case and EIGHT financial accounting cases, usually involving corporate financial statements. Cases will be used in class, and they emphasize how the concepts discussed in lectures relate to corporate practices. Page 2 of 11

3 MANAGERIAL ACCOUNTING There are FOUR managerial accounting cases, 2 being the HBS cases. Cases will be used extensively in classes that apply issues raised in the lecture to a particular context. Each case discussion will allow an open forum discussion of your analyses of the assigned case. Suggested questions for some cases are included in the course schedule. I will collect SIX selected case assignments (4 from financial accounting cases, and 2 from managerial accounting cases) for evaluation and diagnostic purposes, and the due dates of the case assignments are listed on the course schedule. ACADEMIC STANDARDS The following are the fundamental principles for grading in this course: o o o The requirements of the course are the same for everyone. This means that it is not possible to make up for poor performance through extra credit work. Grading will be based on relative rather than absolute standards. It is possible to earn any of the official OSU grades in this course. Grades are assigned on the following basis: Graded case assignments 10% Midterm Exam 1 30% Midterm Exam 2 30% Final Exam 30% Expected Grade Distribution: Grades will be determined based on the overall achievement of the class. By policy, all MBA courses will have, at maximum, an assigned grade average of 3.6. Students will be ranked by their overall percentage score for the required assignments and exams. The following grade distribution is an ex-ante approximation of the final grades to be given: Approximate Grade Characterization Distribution A Exemplary performance 20% A- Strong performance 30% B+ Good performance 35% B Adequate performance 10% B- Adequate performance but demonstrating some deficiencies C+ Weak performance, demonstrating serious deficiencies B- or below C Poor performance, demonstrating pervasive serious deficiencies 5% across all C- Exceptionally poor performance demonstrating pervasive and acute serious deficiencies grades D+/D/E Chronic lack of commitment and effort Page 3 of 11

4 The final grade distribution may differ from this ex-ante distribution because of variations in performance within the class or because of the overall achievement level of the entire class. Graded Case Assignments There will be SIX written case assignments that you are required to turn in for a grade. The assignments are designed to give you practice in applying the course concepts and tools without grade-related pressures. Of these, the highest FIVE assignments scores will be equally weighted and together will determine 10% of your course grade. (See assignment grading method below.) ASSIGNMENT GRADING METHOD: The case assignment will be graded using a satisfactory (S), and unsatisfactory (U) scheme. The grading guidelines and associated points are: Category Description Points Satisfactory Solution is complete and nearly correct or shows 2 basic concept but has several errors. Unsatisfactory Solution is incomplete and/or has major errors. 1 Not submitted Not submitted or no effort shown. 0 LOGISTICS The assignments are to be turned in at the beginning of class on the due dates given in the course schedule. You are welcome to work in groups, but you may not copy other students works, and each of you should turn in your own assignment. If you anticipate missing a class, you may turn in a hard copy of the assignment before class at my office. assignments will only be accepted if they are in ready to print form in.pdf files. Late assignments will NOT be accepted. Exams There will be three open-book, open-notes exams: two midterm exams and one final exam, each of which worth 30% of your final grade. The midterm exams will be held on October 3 (Thursday) and November 12 (Tuesday) for all students. The final will be held during the final exam period for all students. Section 001 Section 002 Exam 1 October 3, Thursday 10:15 am 12:15 pm (GE 365) October 3, Thursday 1:15 pm 3:15 pm (GE 375) Exam 2 November 12, Tuesday 10:15 am 12:15 pm (GE 365) November 12, Tuesday 12:45 pm 2:45 pm (GE 365) Final Exam TBA TBA Page 4 of 11

5 Exams consist of a combination of true/false, multiple choice, and problem questions. The problem questions will be similar to the assigned cases and problems. You may consult the text and your class notes during exams. You will need a calculator for exams. All students should plan to take all exams at the scheduled time. Only in the most exceptional circumstances will a student be excused from an exam, and my prior approval is required. Incompletes will be given only in accordance with University policy. CLASS PARTICIPATION Please do not hesitate to ask questions or make comments during the class. Class participation makes a class more interesting and ensures that the class is going at an acceptable pace. Although class participation is not an explicit part of your grade, it may be taken into account for students at the grade cut-offs. RE-GRADING POLICY I try to make the exam grading both accurate and fair. However, if you disagree with the grading of some part of your exam and would like a re-grade, you can submit a typed re-grade request. Your re-grade request must include a clear and detailed description of why you believe there has been a grading error. Please note though that once you submit a request for re-grade, the WHOLE piece of the exam will be re-graded so that your overall grade could change up or down. OFFICE HOURS, REVIEW, & TAS: There are several sources of help with class materials available to you. If you have a brief question about course content or procedure, you can send me an at xue.wang@fisher.osu.edu. I check my frequently throughout the day. If you would like help in person, you can stop by my office hours (Wednesday from 1 to 3 pm) or the TA s office hours. If you cannot make it to the regularly scheduled office hours, please make an appointment with me or the TA (the best way to set up an appointment is by ). You can also questions directly to the TA. The TA will also be available for group review. The TA will go over some textbook problems and case problems during the review and also answer any questions. Attendance at review session is optional, but recommended if you have questions about the week s materials. You can always the TA in advance of the session if you d like them to cover a specific topic or problem. Review session time and location: TBA. Page 5 of 11

6 STUDENTS WITH DISABILITIES: Any student who feels s/he may need an accommodation based on the impact of a disability should contact either instructor privately to discuss your specific needs. Please contact the Office for Disability Services at (614) in Pomerene Hall Room 150 to coordinate reasonable accommodations for students with documented disabilities. Also see for more information about the Office for Disability Services. HONOR CODE Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University s Code of Student Conduct, and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University s Code of Student Conduct and this syllabus may constitute Academic Misconduct. The Ohio State University s Code of Student Conduct (Section ) 1 defines academic misconduct as: Any activity that tends to compromise the academic integrity of the University, or subvert the educational process. Examples of academic misconduct include (but are not limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and possession of unauthorized materials during an exam. Ignorance of the University s Code of Student Conduct is never considered an excuse for academic misconduct, so we recommend that you review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct. While we expect all students to have high standards and behave honorably, like every academic institution, we sometimes encounter cases of academic misconduct. It is expected that students will report suspected cases of academic and student misconduct; as faculty members we are obligated by University Rules to report our suspicions to the Committee on Academic Misconduct. If COAM determines that a student has violated the University s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade in this course and suspension or dismissal from the University. We also expect that each student will behave in a manner that is consistent with the Fisher Honor Statement, which reads as follows: As a member of the Fisher College of Business Community, I am personally committed to the highest standards of behavior. Honesty and integrity are the foundations from which I will measure my actions. I will hold myself accountable to adhere to those standards. As a future leader in the community and business 1 See: Page 6 of 11

7 environment, I pledge to live by these principles and celebrate those who share these ideals. If you have any questions about these policies or what constitutes academic misconduct in this course, please contact me. Other sources of information on academic misconduct (integrity) to which you can refer include: The Committee on Academic Misconduct web pages ( Ten Suggestions for Preserving Academic Integrity ( Eight Cardinal Rules of Academic Integrity ( PERMITTED STUDY MATERIALS Use of inappropriate study materials, including previously prepared solutions to required homework problems and files containing tests used during previous terms, compromises the concept of equal opportunity for all students and therefore is prohibited. You may use materials that generally are available to all students provided that they maintain the spirit of the learning objectives. Note that I consider it a violation of the honor code to use any materials from prior semesters of this course in preparing for class. This includes class notes, power point presentations, case write-ups, and problem solutions. You will have access to homework solutions. These materials may be used only by students enrolled in MBA 6211 this semester. You may not distribute any of these materials to others, including other students enrolled in MBA 6211 without permission of an instructor and the copyright holder, Cambridge Business Publishers. CLASS COURTESY Students are expected to be in their seats with cell phones turned off prior to the start of class. In addition, laptops should not be used in a way that is distracting to the instructor or other class members usage in class should be limited to the academic purpose of this course and general internet usage is not permitted. IMPORTANT NOTE This syllabus describes a general plan for the course. Keep in mind, however, that I may occasionally have to modify the course schedule to adapt to student learning needs. You can always check Carmen for an up-to-date schedule. (Please note that the dates for exams will not be changed.) Page 7 of 11

8 MBA 6211 COURSE SCHEDULE (subject to change) DMP = Financial Accounting, by Thomas R. Dyckman, Robert P. Magee, and Glenn M. Pfeiffer HM = Managerial Accounting, by Al L. Hartgraves and Wayne J. Morse Thur. Aug. 22 (1) Topic 1: Introduction/ Overview DMP Chapter 1 Tues. Aug. 27 (2) Topic 1: Overview of Financial Statements and Reporting Process DMP Chapter 1 & 2 (pages 41-47) DMP Ch1: 28, 30 Thur. Aug. 29 (3) Topic 2: Mechanics of Financial Reporting I DMP Chapter 1A & 2 (pages 48-69) DMP Ch2: 14, 24, 26, 36, 37, 66 Tues. Sep. 3 (4) Topic 2: Mechanics of Financial Reporting II DMP Chapter 3 DMP Ch3: 23, 32 (b only), 41(b(2) and c) Thur. Sep. 5 (5) Topic 2: FA Case 1 (assignment 1): Mechanics of Financial Reporting III DMP Chapter 3 DMP Ch3: 25, 28, 34, 42 Preparing Financial Statements (Cisco Systems) DUE September 12, Thursday Tues. Sep. 10 (6) Topic 3: Statement of Cash Flows I DMP Chapter 4 DMP Ch4: 22, 26, 39, 40, 41 Thur. Sep. 12 (7) DUE: Topic 3: FA Case 2: Cisco Systems (hand in at the beginning of class) Statement of Cash Flows II DMP Chapter 4 Understanding Financial Statements (Whole Foods and Johnson & Johnson) Tues. Sep. 17 (8) Topic 4: HBS Case 1 (in-class): Revenues Recognitions and Accounts Receivable I DMP Chapter 6 DMP Ch6: 18, 21, 23, 25, 34, 36, 37 Accounting for the iphone HBS Page 8 of 11

9 Case Q: 1. What are the impacts of subscription accounting and upfront recognition on financial statements? 2. Which method best reflects the economic reality? 3. Should Apple lobby for their non-gaap numbers to be sanctioned by FASB? Thur. Sep. 19 (9) Topic 4: FA Case 3 (assignment 2): Revenues Recognitions and Accounting for the iphone DMP Chapter 6 Revenue Recognitions & A/R (Tenet) DUE September 26, Thursday Tues. Sep. 24 (10) Topic 5: Inventory DMP Chapter 7 DMP Ch7: 19, 21, 26 Thur. Sep. 26 (11) DUE: Topic 5: Tenet (hand in at the beginning of class) Inventory (continued) DMP Chapter 7 & Appendix 7A DMP Ch7: 29, 30, 31, 37 Tues. Oct. 1 (12) Catch up & Review Thur. Oct. 3 (13) Midterm Exam I (DMP Chapters 1-4, 6, 7) Section 001: 10:15-12:15 pm in GE 365 Section 002: 1:15-3:15 pm in GE 375 Tues. Oct. 8 (14) Topic 6: FA Case 4: Long-term Operating Assets DMP Chapter 8 & 12 (pages only) DMP Ch8: 11, 13, 14, 15, 22 DMP Ch12: 41 PP&E and Intangibles (Callaway) Thur. Oct. 10 No class Term 1 Exams Tues. Oct. 15 (15) Topic 7: Inter-corporate Investments I DMP Chapter 12 DMP Ch12: 12, 24, 26, 30 Thur. Oct. 17 (16) Topic 7: FA Case 5 (assignment 3): Inter-corporate Investments II DMP Appendix 12A Investments (State Street) DUE October 24, Thursday Page 9 of 11

10 Tues. Oct. 22 (17) Topic 8: Liabilities I DMP Chapter 9 DMP Ch9: 23, 31, 36, 54 Thur. Oct. 24 (18) DUE: Topic 8: FA Case 6: State Street (hand in at the beginning of class) Liabilities II DMP Chapter 9 Long-term Debt and Leases (Rite Aid) Tues. Oct. 29 (19) Topic 9: Leases DMP Chapter 10 (pages only) DMP Ch10: 12, 25, 36 Thur. Oct. 31 (20) Topic 10: FA Case 7 (assignment 4): Deferred income taxes DMP Chapter 10 (pages only) DMP Ch10: 22, 34, 46 Deferred Taxes (Brass Eagle) DUE November 7, Thursday Tues. Nov. 5 (21) Topic 11: FA Case 8: Shareholders Equity DMP Chapter 11 & Appendix 11A (Stock Options only) 21, 26, 41, 49, 50 Shareholders Equity (Home Depot) Thur. Nov. 7 (22) DUE: Brass Eagle (hand in at the beginning of class) Catch up & Review Tues. Nov. 12 (23) Midterm Exam II (DMP Chapters 8, 9, 10 & 12) Section 001: 10:15-12:15 pm in GE 365 Section 002: 12:45-2:45 pm in GE 365 Thur. Nov. 14 (24) Topic 12: HBS Case 2 (in-class): Case Q: Introduction and Costing Concepts HM Module 13, 14 & 17 (pages 1-6 only) HM Module 14: 13, 14, 17, 31 HM Module 17: 14 Hallstead Jewelers HBS See assignments embedded in that case Page 10 of 11

11 Tues. Nov. 19 (25) Topic 13: MA Case 1: (assignment 5) CVP Analysis / Hallstead Jewelers / Relevance HM Module 15 HM Module 15: 18, 24, 36 CVP Analysis (Nintendo) DUE November 26, Tuesday Thur. Nov. 21 (26) Topic 13: MA Case 2 (in-class): Case Q: CVP Analysis & Relevance HM Module 16 HM Module 16: 14, 16, 22, 30 Purdy Call Centers 1. What are the burden rates for the years 2000 to 2003? 2. What are the reported costs for the firm s customers in the years 2000 to 2003? 3. What are the reported profits for the firm s customers in the years 2000 to 2003? 4. What are the possible explanations for the increase in costs across the two years? 5. How would you bid on the contracts that are coming up for renewal? How would you bid on new business? Tues. Nov. 26 (27) Topic 14: HBS Case 3 (in-class & assignment 6): Case Q Purdy Call Centers & Framework for Cost Systems HM Module 17 & Appendix 17A HM Module 17: 19, 20, 32 Classic Pen: HBS DUE December 3, Tuesday Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey. Thur. Nov. 28 No class Happy Thanksgiving!!! Tues. Dec. 3 (28) DUE: Topic 15: Classic Pen (hand in at the beginning of class) ABC & Classic Pen HM Module 18 HM Module 18: 14, 16, 20, 22, 23 Thur. Dec. 5 (29) Catch-up and Review TBA (Dec. 9-11) Final Exam (HM Modules 13-18) Page 11 of 11

BUSINESS FINANCE 4265 Financial Institutions

BUSINESS FINANCE 4265 Financial Institutions Professor: Prof. Bernadette A. Minton Office: 700E Fisher Hall Email: minton.15@fisher.osu.edu Phone: (614) 688 3125 Office Hours: Wednesdays, 1:00 pm 2:00