WACO, TEXAS COURSE SYLLABUS AND INSTRUCTOR PLAN PRINCIPLES OF MANAGERIAL ACCOUNTING ACCT 2302.01 JANIS COLEHOUR AN EQUAL OPPORTUNITY INSTITUTION Spring, 2016
Course Description: Emphasizes managerial use of and decision making with accounting data. Topics include financial statement analysis and interpretation, budgeting, product costing, cost control, and management decision techniques. Prerequisites and/or Corequisites: Prerequisites: Successful completion of ACCT 2401 or 2301. Students must have passed the math portion of the THEA or approved alternative test or have credit for MATH 0307. Semester hours for this course = 3. Course Notes and Instructor Recommendations: ACCT 2302, Managerial Accounting, is the subsequent course to Financial Accounting, ACCT 2401or 2301. The course focuses on cost-control accounting, decision-making analysis and accounting for departmental operations, manufacturing operations and budgetary control. The objective of the course is to provide students, whether or not they are working as accountants or managers, a basic understanding of the organization and the skills necessary to make intelligent, efficient managerial decisions. Instructor Information: Instructor Name: Janis Colehour MCC E-mail: jcolehour@mclennan.edu Office Phone Number: 254-299-8510 Office Location: MAC 227 Office/Instructor Conference Hours: Monday: 12:30-2:30 Wednesday: 10:30-11:00; 12:30-2:30; 4:45-5:15 Other times by appointment and through email. Required Text & Materials: Title: Financial & Managerial Accounting (bundled package with loose leaf textbooks for financial and managerial accounting, 13e., and key for Cengage Now (CNOW)). NOTE: You must have key for using CNOW Authors: Warren, Reeve, Duchac Edition: 13th Edition Publisher: Cengage Learning ISBN: 9781305516717 MCC Bookstore Website I expect you to have your textbook by the second week of class. Each student must have their own textbook and CNOW code. Paper Scantron forms for exams (882-E or 882-ES) Inexpensive, four-function nonprogrammable calculator-phones cannot be used as calculators. Accounting forms (4-6 columns) for problem work-this is optional. Access to computer and internet 2
Methods of Teaching and Learning: Instructor lecture and demonstration of managerial accounting concepts and material. Group and individual exercise/problem assignments. Audit quizzes over assignments (including reading). Exams over chapter material and assignments. Comprehensive final exam. Class participation and discussion. Current events assignments and discussions. Computer lab assignments using excel spreadsheets and accounting software. Use of Cengage NOW, an online homework system dedicated to improving student performance. Other methods as determined by the instructor. Course Objectives and/or Competencies: Identify the major differences and similarities between financial and managerial accounting. Identify and assign product costs in a manufacturing environment. Identify and analyze different cost behaviors. Understand and apply cost-volume-profits relationships and techniques. Understand and apply Job-Order costing and Process costing. Learn to prepare and make decisions with a contribution margin income statement. Understand and apply the principles of absorption and variable costing. Learn the basics of an Activity-Based Costing system. Learn the basics of preparing and using budgets (Profit planning). Learn the basics of standard costing, flexible budgeting and variance analysis. Learn tools and techniques for evaluating the performance of segments of a business. Identify relevant and irrelevant costs and be able to make various business decisions concerning these costs. Learn basics of capital investment decision-making and analysis. The managerial accounting chapters begin with chapter 16. Detailed Course Learning Objectives as outlined in the textbook, Financial & Managerial Accounting, 13e, include the following: Chapter 16-Managerial Accounting Concepts and Principles Managerial Accounting Manufacturing Operations: Costs and Terminology Financial Statements for a Manufacturing Business Uses of Managerial Accounting Chapter 17-Job Order Costing Cost Accounting Systems Overview Job Order Cost Systems for Manufacturing Businesses Job Order Costing for Decision Making Journal Entries for Job Order Costing 3
Chapter 18-Process Cost Systems Process Cost Systems Cost of Production Reports Journal Entries for a Process Cost System Using the Cost of Production Report for Decision Making Chapter 19-Cost Behavior and Cost-Volume-Profit Analysis Cost Behavior Cost-Volume-Profit Relationships Mathematical Approach to Cost-Volume-Profit Analysis Special Cost-Volume-Profit Analysis Variable Costing Chapter 20-Variable Costing for Management Analysis Income from Operations under Absorption Costing and Variable Costing Income Analysis Under Absorption and Variable Costing Using Absorption and Variable Costing Analyzing Market Segments Contribution Margin Analysis Chapter 21-Budgeting Nature and Objectives of Budgeting Budgeting Systems Master Budget Operating Budgets Financial Budgets Chapter 22-Performance Evaluation Using Variances from Standard Costs Standards Budgetary Performance Evaluation Direct Materials and Direct Labor Variances Factory Overhead Variances Chapter 23-Performance Evaluation for Decentralized Operations Centralized and Decentralized Operations Responsibility Accounting for Cost Centers Responsibility Accounting for Profit Centers Responsibility Accounting for Investment Centers Chapter 24-Differential Analysis and Product Pricing Differential Analysis Production Bottlenecks 4
Chapter 25-Capital Investment Analysis Nature of Capital Investment Analysis Methods Not using Present Values Methods Using Present Values Factors that Complicate Capital Investment Analysis Chapter 26-Cost Allocation and Activity-Based Costing Product Costing Allocation Methods Single Plantwide Factory Overhead Rate Method Multiple Production Department Factory Overhead Method Activity-Based Costing Method Chapter 14-Statement of Cash Flows Review Describe the cash flow activities reported in the statement of cash flows. Prepare a statement of cash flows, using the indirect method. Chapter 15-Financial Statement Analysis Review Describe basic financial statement analytical methods. Compute the various financial ratios presented throughout the chapters. Use financial statement analysis to assess the solvency of a business. Use financial statement analysis to assess the profitability of a business. Describe the contents of corporate annual reports. Course Outline or Schedule: Note: The chapter exercise and problem assignments reflect the knowledge required for the successful completion of this course. The assignments are in fact brief statements of the specific problem solving knowledge and skills covered in each chapter. Course examinations will require that the student demonstrate the ability to apply this body of knowledge and skills to accounting problems and questions. The assignments represent the minimum practice/application work that should be done to learn the material. Always be sure to read the chapter and go over the review and discussion material at the end of each chapter as a way of checking your understanding of the chapter. The schedule is subject to change by the instructor. Students will be notified of such changes through an announcement in class. See next page for the tentative schedule. 5
Tentative (EX) Exercises Tentative (PR) B Problems Tentative Time Frame Chap Topic Review Introduction to Managerial Accounting and Review of Financial Accounting, Financial Statements, Etc. TBA TBA 16 Managerial Accounting Concepts and Principles Managerial Accounting 1,2,3,4,9, Manufacturing Operations: Costs and Terminology 15 Financial Statements for a Manufacturing Business 1,4,5 Uses of Managerial Accounting 17 Job Order Costing Cost Accounting Systems Overview Job Order Cost Systems for Manufacturing Businesses 2,4,7,8,10, Job Order Costing for Decision Making 14 (JE s) 1,2,4 Job Order Costing for Professional Service Businesses Journal Entries for Job Order Costing 18 Process Cost Systems Process Cost Systems Cost of Production Reports 1, 5, Journal Entries for a Process Cost System 1,24,25,28 Other Using the Cost of Production Report for Decision TBA Making Lean Manufacturing EXAM 1 (Review, Chapters 16, 17, 18) Feb. 10 19 Cost Behavior and Cost-Volume-Profit Analysis Cost Behavior Cost-Volume-Profit Relationships Mathematical Approach to Cost-Volume-Profit Analysis Graphic Approach to Cost-Volume-Profit Analysis Special Cost-Volume-Profit Analysis Variable Costing 20 Variable Costing for Management Analysis Income from Operations under Absorption Costing and Variable Costing Income Analysis Under Absorption and Variable Costing Using Absorption and Variable Costing Analyzing Market Segments Contribution Margin Analysis Variable Costing for Service Firms 23 Performance Evaluation for Decentralized Operations Centralized and Decentralized Operations Responsibility Accounting for Cost Centers Responsibility Accounting for Profit Centers Responsibility Accounting for Investment Centers Transfer Pricing 1,5,6,7,9, 10,11,14, 23,24,25, 27 1,2,3,6 1,2,5,6,16 1,2,3 9,10,11, 13 These chapters will be covered from Jan. 11-Feb. 10, 2016 These chapters will be covered from Feb. 10-March 2, 2016 EXAM 2 (Chapters 19, 20, 23) March 2 1, 3 6
Chap Topic 21 Budgeting Nature and Objectives of Budgeting Budgeting Systems Master Budget Operating Budgets Financial Budgets 22 Performance Evaluation Using Variances from Standard Costs Standards Budgetary Performance Evaluation Direct Materials and Direct Labor Variances Factory Overhead Variances 24 Differential Analysis and Product Pricing Differential Analysis Setting Normal Product Selling Prices Production Bottlenecks Tentative (EX) Exercises 3,5,6,11, 12,15,17, 18,20 Tentative (PR) B Problems 2,3,4 1,4,8,15 1, 3 2,4,7,9, 11,14,22 1,2,3,4 Tentative Time Frame These chapters will be covered from March 14- April 6, 2016 EXAM 3 (Chapters 21, 22, 24) April 6 25 Capital Investment Analysis Nature of Capital Investment Analysis Methods Not using Present Values Methods Using Present Values Factors that Complicate Capital Investment Analysis Capital Rationing 26 Cost Allocation and Activity-Based Costing Product Costing Allocation Methods Single Plantwide Factory Overhead Rate Method Multiple Production Department Factory Overhead Method Activity-Based Costing Method Activity-Based Costing for Selling and Admin. Expenses Activity-Based Costing for Service Businesses 14-15 Review of Statement of Cash Flows and Financial Statement Analysis FINAL EXAM, COMPREHENSIVE, Chapters 14-26 1,2,5,7, 10,12,15, 16,19 2,5,6,8,9, 11 TBA 1,2,5 TBA TBA These chapters will be covered from April 6-April 28, 2016 Week of May 2 Note: The above assignments represent the minimum practice/application work that should be done to learn the material. Always be sure to read the chapter and go over the review and discussion material at the end of each chapter as a way of checking your understanding of the chapter. 7
Course Grading Information: There will be four examinations (see Tentative Schedule) that will comprise 80% of the course grade. The fourth exam is the final and it is comprehensive over the semester s work. The remaining 20% of the grade is based upon lab assignments, CNOW assignments, homework, class assignments, audit quizzes, attendance and participation in the contribution to the learning environment in the class. Absences and tardiness will be a factor that will affect your final grade. It will be the responsibility of each student to obtain any missed work from other students. Your final grade will be determined as follows: Exams-4 Exams including the Final....80% Daily Grade-Homework, Audit Tests, Daily Work, Participation, Attitude, CNOW assignments/quizzes, Other Assignments.. 20% The following grade scale applies: 90-100+ = A 60-69 = D 80-89 = B <60 = F 70-79 = C Late Work, Attendance, and Make Up Work Policies: Attendance will directly affect your final grade in the course in 2 ways: 1. If you attend class, you have the opportunity to hear and see the instructor explanation of the course material. Your exam grades may be significantly better. Class time provides a valuable learning opportunity and interaction with both the instructor and other students. 2. As discussed above, daily work is 20% of your overall grade and can make a difference of up to two letter grades. If you attend class, you will participate in daily graded activities and therefore receive a higher "daily average." Come prepared for class. Attendance alone will not result in a passing grade for you. Based on MCC s Attendance policy, each absence will count toward attendance requirements in each course. Regular and punctual attendance is expected of all students, and a complete record of attendance will be kept by the instructor for the entire length of each course. Students will be counted absent from class meetings missed, beginning with the first official day of classes. Students, whether present or absent, are responsible for all material presented or assigned for a course, and will be held accountable for such materials in the determination of course grades. It will be the responsibility of each student to obtain the assignments and any missed material from other students. Please share contact information with another student in the class. 8
Absence from 25 percent of scheduled class meetings will be taken as evidence that a student does not intend to complete the course; the student will be dropped by the instructor. For this class, the 25% represents seven (7) absences for a MW or TTH class and four(4) absences for a Wednesday only class. Please do not think of these allowed absences (< 25%) as an entitlement. If the student's 25 percent absences are accumulated before the official drop date, the instructor will assign a grade of W (subject to the six-drop rule-see below). It is the student s responsibility to inform the instructor of the reason for an absence and to do so in a timely fashion. Timely fashion will be interpreted for this class to mean within three days. If the 25% absences are reached after the official drop date of March 28, 2016, the student will most likely receive an F for non-completion of the course. Please refer to the Highlander Guide for the complete attendance policy. Based on section 51.907 of the Texas Education Code, students who enroll at MCC as entering freshmen or first-time college students during the fall 2007 semester or any subsequent semester may not drop more than six courses. The student will receive an F for this course if the student has six drops and an attempt has been made to drop the student for attendance or other issues. Tardiness Student tardiness disrupts a class. A tardy is up to 15 minutes. After the third tardy, every tardy will be counted as an absence. Any tardy over 15 minutes will be counted as ½ an absence. However, after any third tardy, it will be counted as one absence. This same policy will also be applied to leaving class early. If you are tardy, do not assume that I have changed your absence to a tardy. Please remind me after class. Withdrawals If you decide to drop this course, it is your responsibility and opportunity as a student to initiate the withdrawal. The last day to drop with an automatic "W" is March 28, 2016 (except for students who already have six drops-see above). I do not give a W after this date. Please do not ask me to drop you after March 28, 2016, for any reason. 9
Makeup for Daily Work and Exams: Assignments will include CNOW assignments/quizzes, reading, and/or exercises and problems to be worked on your own. Assigned homework (including reading assignments) will be due at the beginning of the next class meeting. Homework, other than CNOW assignments/quizzes, may be taken up or I may give an audit quiz over the assignment or reading. Quiz questions will not be repeated for late students. There will also be CNOW assignments/quizzes that will need to be completed using the textbook s CNOW website (you will need the access code to use CNOW). Daily grades will be graded on a scale from 0 to 10, the 10 points representing accurate answers. CNOW assignments/quizzes will be graded on CNOW. Missed daily grades will count as a zero. Daily work CANNOT, under any circumstances, be made up or turned in after the due date. You have to be present in class to receive a grade for work done in class or for quizzes given in class. I will not accept homework assignments before they are due because you are going to miss a class. However, I will drop your two lowest daily grades at the end of the semester. This is the makeup for missed daily grades, for whatever reasons. Please don t expect to be able to makeup daily assignments and quizzes and also be allowed to drop 2 daily grades at the end of the semester. I may occasionally offer an assignment or quiz for replacement of a missed or low-scored grade. No makeup exam will be given for a missed exam. If you miss one of the first three exams, the fourth and final exam will be counted twice to replace points lost by missing an exam (for any reason). This is your makeup for a missed exam. Only one missed exam will be counted this way. Other missed exams will be recorded as a zero. Also, if you have taken the first three exams and score higher on the final exam than one of the previous exams, I will drop that lower exam grade and count the final exam twice. If you miss the final exam, it will result in an F in the course or a W depending on the student s substantial completion of the course. Student Behavioral Expectations or Conduct Policy: In accordance with the "General Conduct Policy", MCC intends to provide an atmosphere conducive to learning. Adherence to the behavioral standards of mutual respect and academic honesty is expected of all students. All cell phones, ipods, MP3 players, etc. are to be turned off and put out of sight. Phones may not be used for calculators. If you are expecting an emergency call, please inform me before class and leave your phone on silent mode or vibrate. Leave the room if you receive the call. You will be asked to leave the class for violation of this policy and this will be counted as a full absence. The student may also lose points on a daily assignment or exam. This is at my discretion. Continual violation will result in the student being dropped from the course or receiving an F in the course. The following are other behavioral expectations that will provide a more conducive learning environment for all students in the classroom and will provide opportunities for successful completion of this course. Violations may result in dismissal from the classroom, points lost on daily assignments or exams or being dropped from the course. This is at my discretion. The use of alcohol, drugs or tobacco products is not allowed in the classroom. 10
Students should not attend class with the smell of or under the influence of drugs or alcohol. Take care of your personal business before class starts. Leaving and entering the classroom disrupts the learning environment. Exceptions for sickness will be made. If this is a continual habit, I will tell the student to leave. Expressions of opinions and questions on classroom discussions are encouraged. Do not carry on your own private conversations while I am or other classmates are talking. This is disrespectful and I will dismiss you from the class. Do not sleep during class. I will ask you to leave. Mutual respect of others opinions is expected. Loud, raucous behavior in the classroom is not acceptable. Only simple, non-programmable calculators may be used on exams in this course. Translators may not be used during exams. Major exams will be returned to students for review after being graded. These exams must be returned to the instructor by the end of the class period. If you take an exam out of the classroom or copy the exam in anyway, it will result in a zero on the exam. Students of the college, while on campus and/or participating in any function or activity of the college, are expected to meet acceptable standards of dress and personal hygiene. A student s dress or personal hygiene shall be considered unacceptable if it inhibits or interferes with the educational responsibility of the college community or if it disrupts the administrative functions of the college, including social-educational activities. MCC Academic Integrity Statement: The Center for Academic Integrity defines academic integrity as a commitment, even in the face of adversity, to five fundamental values: honesty, trust, fairness, respect, and responsibility. From these values flow principles of behavior that enable academic communities to translate ideals into action. Individual faculty members determine their class policies and behavioral expectations for students. Students who commit violations of academic integrity should expect serious consequences. For further information about student rights, responsibilities, and academic integrity definitions, please consult the General Conduct Policy in the Highlander Guide. Academic Integrity Statement: As stated in MCC s General Conduct Policy, cheating includes, but is not limited to: use of any unauthorized assistance in taking quizzes, tests, or examinations; dependence upon the aid of sources beyond those authorized by the instructor in writing papers, preparing reports, solving problems, taking tests or exams or carrying out other assignments; or the acquisition, without permission, of tests or other academic materials belonging to a member of the MCC faculty or staff. Any student, who the instructor believes is cheating, may receive an F on the project, assignment or exam, or an F in the course. As stated in MCC s General Conduct Policy, plagiarism includes, but is not limited to, the use, by paraphrase or direct quotation, of the published or unpublished work (this includes internet articles, information, etc.) of another person without full and clear acknowledgement. It also includes the unacknowledged use of materials prepared by 11
another person or agency engaged in the selling of term papers or other academic materials. Any student, who the instructor believes is plagiarizing, may receive an F on the project, assignment or exam, or an F in the course. MCC Attendance Policy: Regular and punctual attendance is expected of all students, and each instructor will maintain a complete record of attendance for the entire length of each course, including online and hybrid courses. Students will be counted absent from class meetings missed, beginning with the first official day of classes. Students, whether present or absent, are responsible for all material presented or assigned for a course and will be held accountable for such materials in the determination of course grades. Please refer to the Highlander Guide for the complete policy. ADA Statement: In accordance with the requirements of the Americans with Disabilities Act (ADA), and the regulations published by the United States Department of Justice 28 C.F.R. 35.107(a), MCC s designated ADA coordinators, Dr. Drew Canham Vice President, Student Success and Mr. Gene Gooch - Vice President, Finance and Administration shall be responsible for coordinating the College s efforts to comply with and carry out its responsibilities under ADA. Students with disabilities requiring physical, classroom, or testing accommodations should contact the Accommodations Specialist at the Completion Center in the Student Services Center, Room 211 or at 299-8122 or disabilities@mclennan.edu. TITLE IX No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance. Legal Citation: Title IX of the Education Amendments of 1972, and its implementing regulation at 34 C. F. R. Part 106 (Title IX) In accordance with the requirements of the Title IX Education Amendments of 1972 MCC s designated Title IX Coordinator, Drew Canham Vice President, Student Success and Deputy Coordinator, Melissa (Missy) Kittner Director, Human Resources shall be responsible for coordinating the College s effort to comply with and carry out its responsibilities under Title IX. Contact information Drew Canham, Title IX Coordinator Vice President, Student Success McLennan Community College Administration Building, Room 408 Administration Building, Room 104 1400 College Drive 1400 College Drive 254-299-8645 254-299-8514 FAX: 254-299-8654 FAX: 254-299-8592 dcanham@mclennan.edu mkittner@mclennan.edu Melissa (Missy) Kittner, Title IX Deputy Coordinator Director, Human Resources McLennan Community College 12
Course Syllabus Acknowledgement I understand that I have the opportunity to drop this course by March 28, 2016, with a W. After this date, I will not request a withdrawal ( W ) from my instructor for any reason. I acknowledge receipt of the course syllabus for ACCT 2302, Principles of Managerial Accounting. I have read this syllabus and understand the expectations for the successful completion of this course and the attendance policy of my instructor, Janis Colehour. I also understand the cell phone policy for this class and the consequences for noncompliance. Student s signature Date Student s printed name 13