ACCT 386 DEA Managerial and Cost Accounting

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ACCT 386 DEA

Managerial and Cost Accounting

March Session 14-54

March 23 – May 16, 2015

Course Description

Accounting data and other financial data applied to the management of an enterprise. Cost

accounting as part of the spectrum of manufacturing costs is studied. Particular emphasis is placed on planning and controlling.

Prerequisite: ACCT 281 Proctored Exams: -- none

Textbooks

Title: Loose Leaf Managerial Accounting with Connect Plus Author: Garrison, R., Noreen, E., Brewer, P.

ISBN: 978-1259181252 Edition: 15th₂₀₁₅

Publisher: McGraw-Hill/Irwin

You can also purchase access to Connect along with an e-book on the first day of the course via the Connect website.

I will provide a link to my Connect website on the first day of class. Do not try to register for Connect prior to the first day. You must register for my website only. Registration cannot be changed or reversed.

Textbooks for the course may be ordered from MBS Direct. You can order

 online at http://direct.mbsbooks.com/columbia.htm (be sure to select Online Education rather than your home campus before selecting your class)

 by phone at 800-325-3252

Course Overview

Welcome to Managerial and Cost Accounting (ACCT 386)! Throughout this course we will begin to learn about some of the more complicated topics in managerial and cost accounting.

Technology Requirements

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College:

 A computer with reliable Internet access,

 a web browser,

 Acrobat Reader,

 Microsoft Office or another word processor such as Open Office.

You can find more details about standard technical requirements for our courses on our site.

Course Objectives

 To become aware of the uses of accounting data within an organization by its managers.

 To appreciate what kind of information is needed, where this information can be obtained, and how this information can be used by managers as they carry out their planning, control and decision-making responsibilities.

Measurable Learning Outcomes

 Explain the accountant’s role in the organization and the decision making process

 Understand cost terms and describe cost behavior

 Understand job order and process costing systems

 Explain the concept of activity based costing systems

 Calculate and interpret cost volume profit relationships

 Explain profit planning analysis through the use of flexible budgeting and variance analysis

 Calculate pricing decision based upon relevant costs

 Prepare capital budgets

Grading

Grading Scale

GRADE POINTS PERCENT A 630-700 90-100 B 560-629 80-89 C 490-559 70-79 D 420-489 60-69 F 000-419 0-59

Grade Weights

ASSIGNMENT POINTS PERCENT

Discussions (4) 100 14

Homework (7) 200 29

Tests (4) 400 57

Total 700 100

Grades will be updated each Wednesday for the prior week.

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Schedule of Due Dates

WEEK ASSIGNMENT POINTS DUE DAY

1 Discussion 1 25 Sunday 5 Discussion 3 25 Sunday

Homework 1 30 Homework 5 30

2 Homework 2 30 Sunday 6 Homework 6 30 Sunday

Test 1 100 Test 3 100

3 Discussion 2 25 Sunday 7 Discussion 4 25 Sunday

Homework 3 30 Homework 7 20 4 Homework 4 30 Sunday 8 Test 4 100 Saturday Test 2 ₁₀₀ Course WrapUp --

Assignment Overview

Readings: Each week you will be assigned readings from the textbook and the course environment. Please complete the readings prior to posting to the weekly discussions.

Discussions: There are four discussions throughout this session. Please see the Schedule of Due Dates for specific scheduling. You are required to actively participate in the course discussions. Active participation includes posting original thoughts and reading/responding to your classmates’ postings. You must respond to a minimum of one of your classmates’ postings.

Homework: There are weekly Homework assignments that will require you to access the Connect Accounting website. You have multiple attempts to work the homework. See the Connect Accounting website for specific assignment detail.

Tests: Tests are posted at the Connect website and can be worked on all week. Be sure you do not submit the exam until you are finished with the test and ready to submit. The exams are due by Sunday evening for Weeks 2, 4, and 6, and Saturday evening for Week 8. All tests are comprised of multiple choice questions.

Course Schedule

Week 1 – Managerial Accounting – An overview and cost concepts

Readings

 Chapters 1 and 2

 Review Chapters 1 and 2 related materials at the textbook website.

 Review all Week 1 resources in the Content area. Discussions

 Introduction: Introduce yourself in the "Introductions" topic of our class discussion. Please give us more than your name. Include your profession, hobbies, interest in this course, and any other information that can help us get to know you. Don't be shy; I will go first!

 Discussion 1: Visit one of the company websites listed below or choose another company that interests you.

 Biolea

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 Gulf Craft Inc

Review the information about the operations of the company that is provided on the company’s website. Write a brief summary (one paragraph) for the company that includes:

 A brief description of the operations of the company and

 Two specific examples of possible: o Fixed costs,

o Variable costs, and o Mixed costs.

Homework 1: You will complete 5-8 questions similar to the end of chapter exercises in Chapters 1 and 2. You will be able to rework differing versions of the homework to improve your grade and ensure your understanding of this week's material. See the Connect Accounting website for the specific assignment and instructions. This week’s homework will cover the following learning objectives as described in the text.

LO2–1 Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs.

LO2–2 Identify and give examples of each of the three basic manufacturing cost categories.

LO2–3 Understand cost classifications used to prepare financial statements: product costs and period costs.

LO2–4 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.

LO2–5 Analyze a mixed cost using a scatter-graph plot and the high-low method.

LO2–6 Prepare income statements for a merchandising company using the traditional and contribution formats.

LO2–7 Understand cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.

LO2–8 (Appendix 2A) Analyze a mixed cost using a scattergraph plot and the least-squares regression method.

LO2–9 (Appendix 2B) Identify the four types of quality costs and explain how they interact. LO2–10 (Appendix 2B) Prepare and interpret a quality cost report.

Week 2– Job Order Costing

Readings

 Chapter 3

 Review Chapter 3 related materials at the textbook website.

 Review all Week 2 resources in the Content area.

Homework 2: You will complete 5-8 questions similar to the end of chapter exercises in Chapter 3. You will be able to rework differing versions of the homework to improve your grade and ensure your understanding of this week's material. See the Connect Accounting website for the specific assignment and instructions. This week’s homework will cover the following learning objectives as described in the text.

LO3–1 Compute a predetermined overhead rate.

LO3–2 Apply overhead cost to jobs using a predetermined overhead rate. LO3–3 Compute the total cost and average cost per unit of a job.

LO3–4 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.

LO3–5 Use T-accounts to show the flow of costs in a job-order costing system.

LO3–6 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.

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LO3–7 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.

LO3–8 (Appendix 3A) Use activity-based absorption costing to compute unit product costs. LO3–9 (Appendix 3B) Understand the implications of basing the predetermined overhead rate on activity at capacity rather than on estimated activity for the period.

Test 1: Covers Chapters 1, 2 and 3. The test will be completed at the Connect Accounting Website.

Week 3– Process Costing and CVP Relationships

Readings

Discussion 2: Through 2012, Fortune Magazine published the FSB 100, a list of America's 100 Fastest-Growing Small Companies. Using the FSB website link available in the Content area, identify one company on the FSB 100 that would most likely use process costing systems. Write a brief summary (one paragraph) about the company you choose. The summary should include the name, website address, and a brief description of its business, and set forth the reasons why the company would most likely use a process costing system.

LO4–1 Record the flow of materials, labor, and overhead through a process costing system. LO4–2 Compute the equivalent units of production using the weighted-average method. LO4–3 Compute the cost per equivalent unit using the weighted-average method. LO4–4 Assign costs to units using the weighted-average method.

LO4–5 Prepare a cost reconciliation report.

LO4–6 (Appendix 4A) Compute the equivalent units of production using the FIFO method. LO4–7 (Appendix 4A) Compute the cost per equivalent unit using the FIFO method. LO4–8 (Appendix 4A) Assign costs to units using the FIFO method.

LO4–9 (Appendix 4A) Prepare a cost reconciliation report using the FIFO method.

LO4–10 (Appendix 4B) Allocate service department costs to operating departments using the direct method.

LO4–11 (Appendix 4B) Allocate service depart-ment costs to operating departments using the step-down method.

LO5–1 Explain how changes in activity affect contribution margin and net operating income. LO5–2 Prepare and interpret a cost-volume-profit (CVP) graph and a profit graph.

LO5–3 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.

LO5–4 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.

LO5–5 Determine the break-even point.

LO5–6 Determine the level of sales needed to achieve a desired target profit. LO5–7 Compute the margin of safety and explain its significance.

LO5–8 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income.

LO5–9 Compute the break-even point for a multiproduct company and explain the effects of shifts in the sales mix on contribution margin and the break-even point.

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Week 4– Variable Costing and Segment Reporting

Readings

 Chapter 6

 Review Chapter 6 related materials at the textbook website.

Homework 4: You will complete 5-8 questions similar to the end of chapter exercises in Chapter 6. You will be able to rework differing versions of the homework to improve your grade and ensure your understanding of this week's material. See the Connect Accounting website for the specific assignment and instructions. This week’s homework will cover the following learning objectives as described in the text.

LO6–1 Explain how variable costing differs from absorption costing and compute unit product costs under each method.

LO6–2 Prepare income statements using both variable and absorption costing.

LO6–3 Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.

LO6–4 Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.

LO6–5 Compute companywide and segment break-even points for a company with traceable fixed costs.

LO6–6 (Appendix 6A) Prepare an income statement using super-variable costing and reconcile this approach with variable costing.

Test 2: Covers Chapters 4, 5, and 6. The test will be completed at the Connect Accounting Website.

Week 5– Activity Based Costing and Profit Planning

Readings

Discussion 3: Perform an Internet search using one of the following terms:

 Activity Based Costing

 Budgeting

 Zero-based budget (or zero-based budgeting)

 Continuous budgeting

Select an article (less than one year old) from the results of your search. After reading the article, post a couple of paragraphs that summarizes and comments on the article. Be sure to include a link to the article in your post.

LO7–1 Understand activity-based costing and how it differs from a traditional costing system. LO7–2 Assign costs to cost pools using a first-stage allocation.

LO7–3 Compute activity rates for cost pools.

LO7–4 Assign costs to a cost object using a second-stage allocation.

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LO7–6 (Appendix 7A) Prepare an action analysis report using activity-based costing data and

interpret the report.

LO8–1 Understand why organizations budget and the processes they use to create budgets. LO8–2 Prepare a sales budget, including a schedule of expected cash collections.

LO8–3 Prepare a production budget.

LO8–4 Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials.

LO8–5 Prepare a direct labor budget.

LO8–6 Prepare a manufacturing overhead budget.

LO8–7 Prepare a selling and administrative expense budget. LO8–8 Prepare a cash budget.

LO8–9 Prepare a budgeted income statement. LO8–10 Prepare a budgeted balance sheet.

Week 6– Flexible Budgets, Standard Costs and Variances

Readings

LO9–1 Prepare a flexible budget.

LO9–2 Prepare a report showing activity variances.

LO9–3 Prepare a report showing revenue and spending variances.

LO9–4 Prepare a performance report that combines activity variances and revenue and spending variances.

LO9–5 Prepare a flexible budget with more than one cost driver.

LO9–6 Understand common errors made in preparing performance reports based on budgets and actual results.

LO10–1 Compute the direct materials price and quantity variances and explain their significance. LO10–2 Compute the direct labor rate and efficiency variances and explain their significance. LO10–3 Compute the variable manufacturing overhead rate and efficiency variances and explain their significance.

LO10–4 (Appendix 10A) Compute and interpret the fixed overhead budget and volume variances. LO10–5 (Appendix 10B) Prepare journal entries to record standard costs and variances.

Test 3: Covers Chapters 7, 8, 9, and 10. The test will be completed at the Connect Accounting Website.

Course Evaluations: Course evaluations are available and will remain open until Thursday of Week 7. A link sent to your CougarMail will allow you to access the evaluation. Please note that these evaluations are provided so that I can improve the course, find out what students perceive to be its strengths and weaknesses, and in general assess the success of the course. Please do take the time to fill this out.

Week 7– Differential Analysis and Capital Budgeting Decisions

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Discussion 4: Go to the Flowers Foods website (link in the Content area) and click on the Virtual Bakery Tour link (accessible from the Company Info pull-down menu). Take the tour of the company’s bakery in Texas. After taking the tour, answer the following questions:

 What functions have been outsourced?

 Which parts of the general production process have been automated?

 Which parts of the bread-line have been automated?

 Which parts of the production process are still labor-intensive?

LO12–1 Identify relevant and irrelevant costs and benefits in a decision.

LO12–2 Prepare an analysis showing whether a product line or other business segment should be added or dropped.

LO12–3 Prepare a make or buy analysis.

LO12–4 Prepare an analysis showing whether a special order should be accepted. LO12–5 Determine the most profitable use of a constrained resource.

LO12–6 Determine the value of obtaining more of the constrained resource.

LO12–7 Prepare an analysis showing whether joint products should be sold at the split-off point or processed further.

LO13–1 Determine the payback period for an investment.

LO13–2 Evaluate the acceptability of an investment project using the net present value method. LO13–3 Evaluate the acceptability of an investment project using the internal rate of return method. LO13–4 Evaluate an investment project that has uncertain cash flows.

LO13–5 Rank investment projects in order of preference. LO13–6 Compute the simple rate of return for an investment.

LO13–7 (Appendix 13A) Understand present value concepts and the use of present value tables. LO13–8 (Appendix 13C) Include income taxes in a net present value analysis.

Week 8– Wrap-up and Final Test

Test 4: Covers Chapters 12 and 13. The test will be completed at the Connect Accounting Website.

Course Policies

Student Conduct

All Columbia College students, whether enrolled in a land-based or online course, are responsible for behaving in a manner consistent with Columbia College's Student Conduct Code and Acceptable Use Policy. Students violating these policies will be referred to the office of Student Affairs and/or the office of Academic Affairs for possible disciplinary action. The Student Code of Conduct and the Computer Use Policy for students can be found in the Columbia College Student Handbook. The

Handbook is available online; you can also obtain a copy by calling the Student Affairs office (Campus

Life) at 573-875-7400. The teacher maintains the right to manage a positive learning environment, and all students must adhere to the conventions of online etiquette.

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Plagiarism

Your grade will be based in large part on the originality of your ideas and your written presentation of these ideas. Presenting the words, ideas, or expression of another in any form as your own is plagiarism. Students who fail to properly give credit for information contained in their written work (papers, journals, exams, etc.) are violating the intellectual property rights of the original author. For proper citation of the original authors, you should reference the appropriate publication manual for your degree program or course (APA, MLA, etc.). Violations are taken seriously in higher education and may result in a failing grade on the assignment, a grade of "F" for the course, or dismissal from the College.

Collaboration conducted between students without prior permission from the instructor is considered plagiarism and will be treated as such. Spouses and roommates taking the same course should be particularly careful.

All required papers may be submitted for textual similarity review to Turnitin.com for the detection of plagiarism. All submitted papers may be included in the Turnitin.com reference database for the purpose of detecting plagiarism. This service is subject to the Terms and Conditions of Use posted on the Turnitin.com site.

Please view the plagiarism tutorial that can be found in your course content area in D2L.

Non-Discrimination

There will be no discrimination on the basis of sex, race, color, national origin, sexual orientation, religion, ideology, political affiliation, veteran status, age, physical handicap, or marital status.

Disability Services

Students with documented disabilities who may need academic services for this course are required to register with the Coordinator for Disability Services at (573) 875-7626. Until the student has been cleared through the disability services office, accommodations do not have to be granted. If you are a student who has a documented disability, it is important for you to read the entire syllabus before enrolling in the course. The structure or the content of the course may make an accommodation not feasible.

Online Participation

You are expected to read the assigned texts and participate in the discussions and other course activities each week. Assignments should be posted by the due dates stated on the grading schedule in your syllabus. If an emergency arises that prevents you from participating in class, please let your instructor know as soon as possible.

Attendance Policy

Attendance for a week will be counted as having submitted a course assignment for which points have been earned during that week of the session or if the proctoring information has been

submitted or the plagiarism quiz taken if there is no other assignment due that week. A class week is defined as the period of time between Monday and Sunday (except for Week 8, when the week and the course will end on Saturday at midnight). The course and system deadlines are all based on the Central Time Zone.

Cougar E-mail

All students are provided a CougarMail account when they enroll in classes at Columbia College. You are responsible for monitoring e-mail from that account for important messages from the College and from your instructor. You may forward your Cougar e-mail account to another account; however, the College cannot be held responsible for breaches in security or service interruptions with other e-mail

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providers.

Students should use e-mail for private messages to the instructor and other students. The class discussions are for public messages so the class members can each see what others have to say about any given topic and respond.

Late Assignment Policy

An online class requires regular participation and a commitment to your instructor and your classmates to regularly engage in the reading, discussion and writing assignments. Although most of the online communication for this course is asynchronous, you must be able to commit to the schedule of work for the class for the next eight weeks. You must keep up with the schedule of reading and writing to successfully complete the class.

Late discussion assignment posts will not be accepted or receive any credit. Late homework will have 2 points deducted for each day it is late. Late tests will have 5 points deducted for each day it is late.

Course Evaluation

You will have the opportunity to evaluate the course near the end of the session. Course evaluations will open on Sunday of Week 5 and will remain open until Thursday of Week 7. A link will be sent to your CougarMail that will allow you to access the evaluation. Be assured that the evaluations are anonymous and that your instructor will not be able to see them until after final grades are submitted.

Additional Resources

Orientation for New Students

This course is offered online, using course management software provided by Desire2Learn and Columbia College. The Student Manual provides details about taking an online course at Columbia College. You may also want to visit the course demonstration to view a sample course before this one opens.

Technical Support

If you have problems accessing the course or posting your assignments, contact your instructor, the Columbia College Helpdesk, or the D2L Helpdesk for assistance. Contact information is also available within the online course environment.

CCHelpDesk@ccis.edu

800-231-2391 ex. 4357

helpdesk@desire2learn.com

877-325-7778

Online Tutoring

Smarthinking is a free online tutoring service available to all Columbia College students.

Smarthinking provides real-time online tutoring and homework help for Math, English, and Writing. The Writing Center can be used for writing assistance in any course.

Smarthinking also provides access to live tutorials in writing and math, as well as a full range of study resources, including writing manuals, sample problems, and study skills manuals. You can access the service from wherever you have a connection to the Internet. I encourage you to take advantage of this free service provided by the college.

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Grading Criteria

Discussions

Criteria Description A (22.5-25 pts.)

Reflects a full understanding of all key concepts and addresses all questions/criteria presented. Reflects thorough familiarity with the assigned readings. Specific examples are used. Responses are substantive and provoke further thought/discussion, providing in-depth analysis or application of the concepts/questions. Responds to at least one classmate. Reads all of other students’ postings.

B (20-22.4)

Moderate coverage of each required question/criteria presented; one or more elements are missed. Connections to course materials and examples are not fully evident. Posts are simple but show some insight and analysis. Responds to at least one classmate. Reads most of other students’ postings.

C (17.5-19.9 pts.)

Average coverage of each required question/criteria presented; one or more elements are missed. Connections to course materials and examples are not present or are not fully evident. Posts are simple and show little insight or analysis. Offers some new line of thinking, but this expression lacks elaboration, detail, and/or support. Responds to at least one classmate. Reads most of other students’ postings.

D (15-17.4 pts.)

Only briefly touches on one or more elements, minimal effort. Content is off-topic or only summarizes others' posts. Response is vague and does not address readings. Does not express position clearly. Lacks insight and analysis. Posts do not inspire further thinking. May not respond to at least one classmate. Reads little to none of other students’ postings.

F (0-14.9 pts.)

Does not touch on any of the possible elements. Shows little to no effort. Does not support position clearly. Shows no insight, analysis, or familiarity with the readings. No response postings or responses consist of “good job,” “I completely agree,” or similar rhetoric. Reads little to none of the other students’ postings. No postings or plagiarized postings will receive zero credit.