MENDOZA COLLEGE OF BUSINESS

MENDOZA COLLEGE OF BUSINESS I. Instructor Contact Information Instructor: Office Location: Office Hours: Phone: E-mail Address: ACCT 20200 11: ACCOUNTANCY II SPRING 2014 MWF 11:30 PM 12:20 PM ROOM 320 E.J. DEBARTOLO HALL Michael Favorite 809 Grace Hall Monday through Friday, 8:30am 4:30pm, appt. recommended 574 631 6564 (office); 574 233 5993 (h); 574 360 8384 (c) mfavorite@nd.edu II. Required Course Materials Supplement Selected pages from various authors covering topics in Income Taxation, Audit and Assurance, and Budgeting. The supplement will be available via the ACCT 20200 web site (http://acct20200.com). Text Managerial Accounting, 14 th Edition; Garrison, R., Noreen, E., and Brewer, P. (Irwin McGraw-Hill), 2012. Calculator Calculators should be brought to class and to exams. Programmable calculators are not allowed for exams. Cell phones and ipods are not allowed for exams. Simple, four-function calculators or non-programmable scientific calculators are recommended. III. Course Goals and Objectives The primary objective of Accounting is to provide useful information for decision-makers. The overall goal for the two-semester Accountancy sequence is to develop the ability of students to use accounting information in various economic decision-making contexts, as well as to understand the scope of services provided by accounting professionals. ACCT 20200 provides the student with the accounting tools and skills useful for planning, decision-making and management control within an organization. The first third of the course focuses on an understanding of the accounting environment in which business units operate. The remainder of the course deals with the use of internal accounting information to aid management in its decision-making. In addition, there will be problems or cases representing business situations designed to reinforce the course materials and to develop an appreciation for the integrity and ethical conduct required of accountants while performing services in their professional careers. Page 1 of 8

Upon completion of this course and its prerequisite, ACCT 20100, the student should have a broad understanding of the decision usefulness of accounting information both as it relates to decision-making by users of financial statements and decision-making by management. Upon completion of Accountancy I and II, students will understand: $ Business entities and the activities they undertake: Readings provide broad exposure to the forces acting on businesses; the assignments and the use of cases will require the student to simulate business activities. $ Accounting as a broad information discipline: The information perspective of accounting is emphasized throughout the sequence. Most major functional areas of accounting are covered. $ The decision-usefulness of accounting information: The primary objective of accounting is to provide useful information for decision-making. Accounting information usefulness is examined for operating, investing, and financing decisions. $ The nature of contractual relations among business parties as a means for determining accounting information requirements: Accounting information is frequently used to ensure that parties are keeping their business promises. $ The integrity required of accountants: The ethical components of contract performance and the accountant=s role in contract enforcement will be considered in cases and assignments. Accountants must not only be ethical, but often must attest that others are as well. In the process of learning to use accounting information in decision-making, students will: $ Improve oral and written communication skills through daily participation and several assignments that require analysis and written feedback. $ Improve group interaction and team-building skills by completing the assigned group projects. $ Enhance critical thinking skills in the learning process by actively participating in group and classroom activities. $ Apply major concepts, ideas and tools to problem solving situations. Page 2 of 8

IV. Grading Students grades will be determined based on the total points earned on the following items: Group Projects 1 (2)... 55 pts. Group Oral Presentation... 10 pts. Excel Assignments (5)... 25 pts. Assessment Pre-test... 5 pts. Instructor Discretionary Points... 80 pts. Exam 1... 80 pts. Exam 2... 125 pts. Final Exam... 150 pts. Total 530 pts. The course instructors collaborate to assure consistency in grading across sections. Please note that the Mendoza College of Business requires that each instructor s combined sections in this course have an average GPA of 3.1-3.2. The grade ranges will be curved for the class to achieve this target. V. Course Organization & Administration Group Assignments: Groups of students will be organized by the instructor early in the semester. Each group is responsible for the completion of two written group projects as well as any in-class assignments assigned by the individual instructor. Projects and any presentation requirements will be distributed in class at least one week prior to the due date; due dates are listed on the Syllabus. Each group is to work independently of all other groups. Beta Alpha Psi members are not to be asked questions on group projects. If you are unsatisfied with the contributions of a group member, please contact the instructor. Excel Assignments: Five Excel assignments have been assigned throughout the semester. Assignments MUST be completed in Microsoft Excel, NOT ANY OTHER SPREADSHEET PROGRAM. Excel assignments and related templates can be downloaded from the ACCT 20200 website (www.acct20200.com). Each template is individualized with an ID code for each student. It will be assumed a violation of the Honor Code if you use a template with some else s ID code. All Excel assignments are self-grading. Your instructor will provide you with details of how they wish to collect these assignments. You must follow your instructor s instructions to receive credit. Failure to follow the instructions on each assignment will result in a zero grade for the assignment. Late Work: Work submitted to the instructor after the day and time indicated by the instructor without official Notre Dame approval will be assigned a penalty by the instructor. Do not email late work unless instructed to do so. Computer problems are not an excuse for late work. Expect technology to fail and prepare for that possibility. Instructor Discretionary Points: The course is organized around three 50-minute sessions per week. The instructors encourage active student involvement in the learning process. In addition to attendance and participation, individual instructors will announce any additional activities they will use to determine the awarding of instructor points for their sections. Regular attendance and class participation are demanded and will impact the Instructor Points awarded at the end of the semester. Factors in the final points will be attendance, preparation, participation, and general engagement in the course. 1 Group Project 1 is worth 30 points and GP 2 is worth 25 points. Page 3 of 8

Exams: Common exams will be given, but the individual instructors will grade their own exams and determine final grades for their students. It is course policy that students must document sufficient official Notre Dame approval before taking an exam at an alternative time for full credit. If a student arrives late to an exam and is unable to finish by the exam s conclusion, the student may be allowed additional time at the instructor s discretion. Work completed after the exam s conclusion will be assessed a 10% penalty. If a student misses an entire exam without the aforementioned approval, the instructor will use his or her discretion to decide whether or not to give the exam at a later time on the exam date. In this case, there will be an automatic penalty of 20% of total exam points. Grade Appeals on Exams: Any protests on the scores for exams must be submitted in writing within one calendar week after the exam was returned in class. The written protest must clearly identify why the disputed item should be scored differently. General requests for re-grading or failure to follow directions will not be considered. The student will not be granted an extension of time to file a grade protest if not present when the exams were returned to the rest of the class. No points will be allowed for late grade protests. Oral protests of exams will not be considered. Assessment Pre-test: Total of 5 points available You will be required to take an on-line assessment during the first week of class. To receive the 5 points, you must complete the pre-test by the due date listed on the course calendar. A link to the pre-test can be found on the ACCT 20200 website (www.acct20200.com). Drive I resources: The instructor will use the space assigned to the class and section on the I Drive (WebFile) directory for the Spring 2012 semester to place additional class material, exercises, solution to class examples and other relevant material related to the course, including lecture PowerPoint slides. VI. The Academic Code of Honor: AS A MEMBER OF THE NOTRE DAME COMMUNITY, I WILL NOT PARTICIPATE IN OR TOLERATE ACADEMIC DISHONESTY. Expectations with regard to Academic Integrity follow: Students will not give or receive aid on exams. This includes, but is not limited to, viewing the exams of others, sharing answers with others, and using books or notes while taking the exam. It also includes discussing the exam in order to help those who are taking it later. For case assignments involving groups, groups must work completely independently of other individuals, or groups. Each member of a group has an obligation to ensure that the workload is shared by all members for each assignment. Students are expected to avoid plagiarism, including the use of material from previous semesters. See http://www.nd.edu/~writing/resources/avoidingplagarism.html for rules on appropriate citations. Notre Dame s Writing Center is an excellent resource for researching and structuring written assignments. The honor code requires that a student, with knowledge of the above violations, report such occurrences. If a perceived honor code violation occurs, the procedures outlined in the Student Guide to the Academic Codes of Honor, www.nd.edu/~hnrcode, will be followed. * * * * * * * * * * * * * ** * * * * * * * * To the extent possible, the instructors will follow the schedule of assignments in this syllabus. The schedule may be altered in order to enhance student learning opportunities or for other reasons. Page 4 of 8

Session 1 (W 1-15) Introduction: Instructor, Course Structure, Textbook, Webfile Non-Textbook Assignments Group Projects Reading Assignments (To be completed prior to beginning of session) In-Class Activities Excel Assignments Prepare Questions, Exercises and Problems as Assigned by your Instructor Turn In Textbook website (www.mhhe.com/garrison14e); ACCT 20200 website (www.acct20200.com) Info. Sheet Syllabus: Course Policies, Instructor Points, Daily Schedule Session 2 (F 1-17) ACCT 20100 Review Assessment Pretest Completed Review Problem (distributed in class and available on the ACCT 20200 website) Due 1/22 Student (online) Info Sheet Session 3 (M 1-20) Chapter 15: Financial Statement Analysis, pp. 679-690 READ Chapter 15, pp. 679-690 Limitations of Financial Statement Analysis Group Project E15-1, E15-10 Statements in Comparative and Common Size Form #1 (due 1/31) E15-2, E15-7 Ratio Analysis - The Common Stockholder Session 4 (W 1-22) Professional Presentation - TBA Session 5 (F 1-24) Chapter 15: Financial Statement Analysis, pp. 690-693 READ Chapter 15, pp. 690-693 Ratio Analysis - The Common Stockholder E15-8, E15-9, P15-13 Ratio Analysis - The Short-Term Creditor E15-3, E15-5, P15-14, P15-18 Session 6 (M 1-27) Chapter 15: Financial Statement Analysis, pp. 693-699 READ Chapter 15, pp. 693-699 Ratio Analylsis - The Long-Term Creditor E15-4, E15-6, P15-16 Session 7 (W 1-29) SUPPLEMENT: Professional Ethics (pp. 2-27) READ Supplement, pp. 2-27 In-depth Guide to Public Company Auditing (ACCT 20200 site) READ In-depth Guide to Public Company Auditing (see ACCT 20200 site) The Financial Statement Audit 3-32 (a-l ) The Nature of Auditng and the Audit Report Audit Risk AICPA Code of Professional Conduct Student Assessment Pretest ( Online) Session 8 (F 1-31) SUPPLEMENT: Auditor Reports (pp. 43-63) READ Supplement, pp. 43-63 Group Project Public Company and Non-public Company Standard Audit Reports 17-25 (a-l ) #1 Unmodified and Modified Opoinions Additional Reporting Issues Session 9 (M 2-3) Chapter 1: Managerial Accounting: An Overview, pp. 1-23, Chapter 2: Managerial READ Chapter 1, pp. 1-18; Appendix 1A, pp. 20-23; Chapter 2, pp. 24-34 Accounting and Cost Concepts, pp. 24-34 Chapter 1 Q1-1, Q1-3, Q1-5, QA1-3 General Cost Classifications E2-1 Product Costs versus Period Costs E2-2, E2-6, Cost Classifications for Predicting Cost Behavior E2-3 Session 10 (W 2-5) Chapter 2: Managerial Accounting and Cost Concepts, pp. 35-42 Excel Assignment READ Chapter 2, pp. 35-42 An analysis of Mixed Costs #1 (due 2/10) E2-4, E2-12, E2-13, P2-15, P2-17, P2-21, P2-23 Session 11 (F 2-7) Chapter 2: Managerial Accounting and Cost Concepts, pp. 35-42 READ Chapter 2, pp. 35-42 Traditional and Contribution Margin Format Income Statements E2-5, E2-8, E2-11, E2-10, P2-14, P2-18 Cost Classifications for Assigning Costs to Cost Objects P2-16, P2-22, P2-24 Cost Classifications for Decision Making Session 12 (M 2-10) Excel #1 Catch-up and Review for Exam #1 Exam #1 (T 2-11) 7:45-9:15 AM (Locations vary by instructor) Page 5 of 8

Non-Textbook Assignments Group Projects Reading Assignments (To be completed prior to beginning of session) In-Class Activities Excel Assignments Prepare Questions, Exercises and Problems as Assigned by your Instructor Turn In Session 13 (W 2-12) Chapter 5: Cost-Volume-Profit Relationships, pp. 183-190 READ Chapter 5, pp.183-190 The Basics of CVP Analysis E5-1, E5-2 Session 14 (F 2-14) Chapter 5: Cost-Volume-Profit Relationships, pp. 190-202 READ Chapter 5, pp. 190-192 The Basics of Cost-Volume-Profit (CVP) Analysis Excel Assignment E5-3, E5-4, E5-5, E5-17 Target Profit and Break-Even Analysis #2 (due 2/19) E5-6, E5-7, E5-8, E5-11, E5-12, P5-20 CVP Considerations in Choosing a Cost Structure Session 15 (M 2-17) Chapter 5: Cost-Volume-Profit Relationships, pp. 202-207 READ Chapter 5, pp. 202-207 Operating Leverage E5-9, E5-15, P5-21, P5-26 Sales Mix E5-10, E5-14, P5-22 Assumptions of CVP Analysis Session 16 (W 2-19) SUPPLEMENT: Planning for Profit and Cost Control, pp. 80-86 READ Supplement, pp. 80-86 Introduction to the Master Budget Group Project Supplement: E7-2A, E7-3A, E7-4A, E7-5A, P7-17A Excel #2 Sales Budget #2 (due 3/3) Addison Company Practice Master Budget - Sales Budget Kelsey Company Practice Master Budget Session 17 (F 2-21) SUPPLEMENT: Planning for Profit and Cost Control, pp. 87-91 READ Supplement, pp. 87-91 Inventory Purchases Budget Supplement: E7-7A, E7-8A, E7-9A, P7-18A Selling and Administrative Expense Budget Supplement: E7-10A, E7-12A Kelsey Company Practice Master Budget Addison Company - Inv. Purch Budget and Selling & Admin Budget Session 18 (M 2-24) SUPPLEMENT: Planning for Profit and Cost Control, pp. 91-94 READ Supplement, pp. 91-94 Cash Budget Supplement: E7-13A, P7-20A Proforma Income Statement - GAAP and Contribution Margin formats Addison Company - Cash Budget and Proforma Income Statement Kelsey Company Practice Master Budget Session 19 (W 2-26) SUPPLEMENT: Planning for Profit and Cost Control, pp. 94-96 READ Supplement, pp. 94-96 Proforma Balance Sheet Addison Company - Proforma Balance Sheet Kelsey Company Practice Master Budget Session 20 (F 2-28) SUPPLEMENT: Planning for Profit and Cost Control Master Budget Review - Lily Company Practice Master Budget Session 21 (M 3-3) Chapter 9: Flexible Budgets and Performance Analysis, pp. 383-394 READ Chapter 9, pp. 383-394 Flexible Budgets E9-1 Group Project #2 Flexible Budget Variances E9-2, E9-3, E9-4, E9-9-E9-13 Session 22 (W 3-5) Chapter 9: Flexible Budgets and Performance Analysis, pp. 396-399 READ Chapter 9, pp. 396-399 Some Common Errors E9-6, E9-7 Session 23 (F 3-7) Unscheduled/Catch-up Day 3-8 to 3-16 SPRING BREAK Session 24 (M 3-17) Chapter 10: Standard Costs and Variances, pp. 418-425 Excel Assignment READ Chapter 10, pp. 418-425 Standard Costs -- Setting the Stage #3 (due 3/24) Session 25 (W 3-19) Chapter 10: Standard Costs and Variances, pp. 425-430, 435-437 READ Chapter 10, pp. 425-430, 435-437 Using Standard Costs -- Direct Materials Variances E10-1 An Important Subtlety in the Materials Variances E10-7 Session 26 (F 3-21) Chapter 10: Standard Costs and Variances, pp. 430-432, 437-443 READ Chapter 10, pp. 430-432, 437-443 Using Standard Costs -- Direct Labor Variances E10-2, E10-5, E10-6, E10-8, P10-13 Variance Analysis and Management by Exception P10-9, P10-10, P10-11, P10-12 Evaluation of Controls Based on Standard Costs Page 6 of 8

Non-Textbook Assignments Group Projects Reading Assignments (To be completed prior to beginning of session) In-Class Activities Excel Assignments Prepare Questions, Exercises and Problems as Assigned by your Instructor Turn In Session 27 (M 3-24) Excel #3 Review for Exam #2 Exam #2 (T 3-25) 7:45 9:15 AM (Locations vary by instructor) Session 28 (W 3-26) Unscheduled/Catch-up Day Session 29 (F 3-28) Chapter 11: Performance Measurement in Decentralized Organizations, pp. 472-479 READ Chapter 11, pp. 472-479 Decentralization in Organizations E11-1, E11-10, E11-12, P11-15 Responsibility Accounting Evaluating Investment Center Performance -- Return on Investment Session 30 (M 3-31) Chapter 11: Performance Measurement in Decentralized Organizations, pp. 479-485 Excel Assignment READ Chapter 11, pp. 479-485 Residual Income #4 (due 4/9) E11-2, E11-7, E11-8, E11-9, P11-14 Operating Performance Measures E11-3, P11-16 Session 31 (W 4-2) Chapter 11: Performance Measurement in Decentralized Organizations, pp. 485-492; Chapter 11, Appendix A: Transfer Pricing, pp. 507-513 READ Chapter 11, pp. 485-493; Appendix A, pp. 507-513 Balanced Scorecard E11-4, P11-17 Transfer Pricing E11A-1, E11A-2 Session 32 (F 4-4) Chapter 11, Appendix A: Transfer Pricing, pp. 507-513 Transfer Pricing E11A-3, P11A-5, P11A-6 Session 33 (M 4-7) Chapter 11, Appendix B: Service Department Charges, pp. 519-524 READ Chapter 11 Appendix B, pp. 519-524 Service Department Charges E11B-2, E11B-3 Charging Costs by Behavior Some Cautions in Allocating Service Department Costs Session 34 (W 4-9) Chapter 12: Differential Analysis, pp. 527-538 Excel Assignment READ Chapter 12, pp. 527-538 Excel #4 Cost Concepts for Decision Making #5 (due 4/14) E12-1, P12-24 Adding and Dropping Product Lines and Other Segments E12-2, E12-10, E12-15, P12-20 Session 35 (F 4-11) Chapter 12: Differential Analysis, pp. 539-548 READ Chapter 12, pp. 539-548 The Make or Buy Decision E12-3, E12-16, P12-22, P12-25 Opportunity Cost E12-12 Special Orders E12-4, E12-14, P12-21 Utilization of a Constrained Resource E12-5, E12-6, E12-9, E12-13 Session 36 (M 4-14) Chapter 12: Differential Analysis, pp. 548-554 READ Chapter 12, pp. 548-554 Joint Product Costs and the Contribution Approach E12-7, E12-8 Excel #5 Session 37 (W 4-16) SUPPLEMENT: An Introduction to Income Taxes, pp. 125-142 READ Supplement, pp. 125-142 What Qualifies as a Tax? Supplement pp. 151-152: 34, 35, 36, 37, 38, 39, 40, 41, 44, 45, 46, 47 How to Calculate a Tax and Different Ways to Measure Tax Rates Tax Rate Structures and Types of Taxes 4-18 to 4-21 EASTER HOLIDAY Session 38 (W 4-23) SUPPLEMENT: An Introduction to Income Taxes, pp. 142-149; Entities Overview, pp. 155-170 READ Supplement, pp. 142-149, pp. 155-170 Evaluating Alternative Tax Systems Supplement pp. 153-154: 51, 52, 56, 57, 59, 60 Entity Legal Classifications and Non-tax Characteristics Supplement pp. 176-177: 1, 4 Entity Tax Classification Entity Tax Characteristics Page 7 of 8

Non-Textbook Assignments Group Projects Reading Assignments (To be completed prior to beginning of session) In-Class Activities Excel Assignments Prepare Questions, Exercises and Problems as Assigned by your Instructor Turn In Session 39 (F 4-25) SUPPLEMENT: Entities Overview, pp. 45-50 READ Supplement, pp. 45-50 Other Tax Characteristics Supplement pp. 177-182: 12, 24, 25, 37, 38, 52, 53, 54, 57, 64, 65 Corporate Taxable Income Formula Computing Corporate Regular Taxable Income (through Common Temporary Book-Tax Differences) Session 40 (M 4-28) Ethics Day ZZZZ Best Videos Session 41 (W 4-30) Review for Comprehensive Final Exam Final Exam (Tu 5/7) 7:30 9:30 PM (Locations vary by instructor) Page 8 of 8