Managerial Accounting 1B Course Syllabus

Spring 2012

Michael G. Booth

Cabrillo College

Accounting/Finance

Course Description

Teaches the selection, use, and analysis of accounting information by managers. Covers cost accounting

for manufacturing organizations, decision-making based upon accounting information, the evaluation of

business segments, cost-volume analysis, responsibility accounting, standard cost systems and variance

analysis. In addition, emphasis will be made to further the understanding of how the techniques apply to

emerging business that are sustainable and sociall responsible. Quotes from significant individuals past

and present, and direct examples of new business practices exemplifying actions of social responsibility

will be incorporated.

Objectives:

1. Identify the cost components of a product made by a manufacturing company: the cost of materials,

labor, and overhead. Explain how product costing differs in service, merchandising, and manufacturing

companies.

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

and decision context affect cost behavior.

3.Use the contribution margin per unti approach to calculate the sales volume required to break even or

earn a target profit. Use the contribution margin ratio and the equation method to conduct cost-

volume-profit analysis.

4.Distinguish direct costs from indirect costs, select appropriate cost drivers for allocating direct costs,

and recognize the effects of cost allocation.

5.Distinguish between unit-level, batch-level, product-level, and facility-level costs and understand how

these costs affect decision making.

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

services

7. Describe the budgeting process and the benefits it provides

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

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

on investment.

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

flows associated

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

companies

12. Distinguish between job-order and process cost systems

13. Differentiate between horizontal and vertical analysis. Calculate ratios for assessing a company’s

liquidity, solvency and management effectiveness.

14. Identify the types of business events that are reported in the three sections of the statements of

cash flow; operating, financing and investing

Student Learning Outcomes (SLO)

Students should be able to:

Assessment 1

-Use fixed, variable, mixed costs, and distinguishes direct and indirect costs in decision making for;

service, merchandising and manufacturing businesses. Calculate contribution margin to determine

break-even and profitability.

Assessment 2

-Use activity based costing and just-in-time inventory management financial analysis. Prepare flexible

and static budgets; compute variances. Interpret variances for actual vs. static and flexible budgets.

Assessment 3

- Calculate present and future value of money; apply in capital investment for cash flow decision.

Prepare horizontal and vertical analysis of financial statement and determine cash flow within;

operating, financing and investing activities. Prepare financial statement analysis using financial ratios

and determine effectiveness of business as compared to industry.

Textbooks and Supplies

1. Text

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

Copyright year: 2011

The text will be available at the Cabrillo Bookstore approximately two weeks before the semester

begins. You may also buy the text online from Amazon, McGraw-Hill, Barnes & Noble and half.com

(owned by E-Bay). Be aware that it may take 3-4 weeks to receive a text purchased online. Therefore, be

sure to order several weeks before the semester begins; lack of a text does not warrant extension of

assignment/quiz due dates. Another alternative is to purchase the text as an e-book from the publisher.

2.McGraw-Hill's Connect™ - This is a McGraw-Hill product to be used for online homework submission

and grading, it is included with the textbook from the bookstore. This program automatically grades

assignments and provides immediate feedback so you know if you are doing the work accurately. If you

purchased the text used, you will need to go to the URL Link in “Related LINKS Section of this website for

Managerial Accounting 1B. The URL Link will take you to the homework site, for registration and

purchase of the access code.

3.Handheld calculator

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

5.Print Card, if using the Computer Technology Center

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

exception of the final project)

Course Requirements:

Since each person has valuable life and vocational experiences to share, attendance is extremely

important and creates a more interesting and dynamic class. Many class discussions will be related to

the homework/discussion assignments; therefore, it is expected that students will attend and

participate in all class sessions with all assignments prepared professionally and accurately. You are

expected to attend class, and successfully achieve the student learning outcomes for each major

milestone of the course. The student is responsible for all material covered in class, late assignments will

not be accepted. Material covered in class may not be in the textbook, and could be included in exams.

If you are not present when materials are discussed, assigned or distributed in class, it is your

responsibility to obtain materials from other members of the class.

Classroom Student Responsibilities:

The conduct in the classroom will be in accordance with the Cabrillo Student Rights and Responsibilities ,

AR 6110, Revised September 2006. In addition, there will be NO allowance for cheating. The first

incident of cheating will result in an immediate “F”, the second will result in immediate removal from

the course. “This is a learning environment, the best learning occurs through mistakes, and therefore at

all times the work during the course should be from the student.”

Cooperative Learning:

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

tolerated, please:

Turn Off cell phones, pagers, etc before class (or as a minimum have on silent, vibrate mode. No

text messaging is allowed during class. Text messaging will result in dismissal from class session,

and recorded as an absence/non-participation.

If you arrive late or leave early, sit near the door

Do NOT carry on side conversations when I, or others are speaking

Eat before or after—not during class (only water is allowed in the classroom)

Attendance at First Class Meeting

Per Cabrillo College Academic Policies and Procedures:

“Students who do not attend the first class meeting may be dropped and their seats filled by other

students on the waiting list. If a student is unable to attend the first class meeting, but attends another

section or makes other accommodations with the instructor, it is his/her responsibility to notify the

instructor personally or in writing prior. Students should not, however, assume that they will be

dropped. It is the student’s responsibility to officially drop a course using WebAdvisor online

registration. If the instructor does drop the student from the class, there is no automatic refund or

reversal of charges. The student must drop by the deadline during he first two weeks of instruction for

the full-term class.” No exceptions will be made to this policy.

Attendance/Participation:

This course requires active participation each day of class so it is important for you to attend every class

session, arrive on time, and come prepared. Your participation not only enhances your own learning, it

benefits other students in the class, especially when the class is doing group work.

Your level of participation is reflected in your grade and since you can’t participate if you are not in class,

absences will also be reflected in your grade.

Attendance Policy:

Per Cabrillo College Academic Policies and Procedures: “Students are expected to attend all classes and

use the on-line labs via WebCT Blackboard learning systems. Students who are absent because of illness

should personally contact the instructor. Illness related absences do not relieve students from the

responsibility of making up any work missed. It is the responsibility of the student to obtain information

from the on-line course syllabus schedule, and WebCT Blackboard learning systems concerning missed

work and see that it is completed and turned in on time or within a the timeframe set by the instructor

and the student.

Class hours of absence are considered excessive when they total more than the number of hours of full-

time class meets during each week of the 16 week semester. Excessive absence from class will

constitute reason for the instructor to drop a student from the class. However, it is the student’s

responsibility to officially withdraw from the class by published deadlines to avoid failing grades.”

Consequences for Disruptive Behavior:

First incident (not severe) – discussion and verbal warning

Second incident –

a) dismissed for the remainder of the class and possibly for the next class period.

b) A disruptive behavior report will be written and sent to the Dean of Student Services

c) Division Dean will be informed

d) a meeting during office hours will be required to write up an agreement on future behavior in class.

Third incident –

a) dropped from the class.*

b) Disruptive Behavior Report will be written and sent to the Dean of Student Services.

c) Division Dean will also be informed.

SEVERE CLAUSE – Severe acts of disruption, lack of respect, such as with the use of a racial slur or an

issue of sexual harassment or physical violence could be cause for an immediate drop from the class and

a Disruptive Behavior Report sent to the Dean of Student Services and other college and legal

authorities.

Sexual Harassment Issues

Sexual harassment is against the law, against school board policy, is disruptive and not tolerated under

any circumstances in my class. Any student who feels he/she is being harassed in my class is encouraged

to report the situation to me immediately. Any student engaging in sexual harassment may be dropped

from class and reported to the Dean of Student Services for further disciplinary action, may include an

investigation by law enforcement officials as well as College officials.

Disabilities/Special Needs:

Students needing accommodations should contact the instructor ASAP. As required by the Americans

with Disabilities Act (ADA), accommodations are provided to ensure equal opportunity for students with

verified disabilities. If you need assistance with an accommodation, please contact Disabled Student

Services, Room 810, 479-6379, or Learning Skills Program, 479-6220. A Learning Skills specialist is also

available at the Watsonville. Center Student Resource Center, 477-5134.

Accommodations:

If you have difficulty seeing or hearing, or mobility difficulty, please let me know

so that you can be seated appropriately.

As small changes can make the difference between frustration and success, please let the

instructor know if you are having difficulty with the accessibility of materials or the class.

If you have an accommodations letter, please give the instructor a copy and meet with the

instructor to discuss any accommodations you need to be successful in this class.

Veterans Services Overview

Cabrillo College provides assistance in obtaining your educational goals:

Contact: Patricia Reyes, Veterans Certifying Offical

Phone: (831) 477-5697

Location: Admissions & Records, Bldg. 100, Window 4...do not wait in line!

Academic Counseling

Personal Counseling

Special Programs

(Homework/Assessment)

Homework:

Accounting 1B is intense and will require more work than most classes. Most learning occurs OUTSIDE the

classroom, which means you can only master the subject through hard work—doing assignments, reading

the text, working the problems and exercises, and preparing the discussion topics for group discussion.

Students who apply themselves succeed in this class: student’s can succeed if you follow effective time

management and make the course a priority for your expansion of knowledge.

All chapters, will be discussed. Selected exercises and/or problems will be assigned and must be completed

using McGraw Hill Connect™. Submit your solutions via the McGraw-Hill Connect™(Accounting1B URL is in

Related LINKS ).

Managerial Accounting (Garrison,Noreen, Brewer,13th edition):

Discussion Topics:

Note: on the Tentative schedule there are several “ Group Discussion Topics” assigned from the Managerial

Accounting textbook. It is critical you have reviewed the material prior to the class meeting, and are

prepared to add constructed dialog to the group discussions. In addition, have any necessary ratios, or

analysis completed prior to class. Your analysis will be collected at the end of each class that a discussion is

assigned. Be prepare to present the results of the group discussion as an individual representing the

summary of the group conclusions. This is a critical part of the course, and you will need to have your

completed assignment ready to turn-in on the day of the discussion/presentation.

Assessments:

Four (4) Assessments will be given, including the Final, plus one chapter quiz . Assessments will consist

mostly of multiple-choice questions but may include matching, terminology, problem solving,

computations, budgets, cost analysis, written analysis, ratios etc. See the Tentative schedule for assessment

dates. Assessments will be separated into chapters. Assessments are linked to Student Learning Outcomes

listed on course home page. No make-ups will be given for late exams. (Note: Exams will be given using

SCANTRON form 882-E. If there is an exception it will be announced during class and updated on this

website.)

SCHEDULE:

Please note: This is a summary of the tentative schedule and is subject to change during the semester.

Changes will be announced, posted on this website, and written on the whitboard at the begining of class

when the change is announced.

Please note – This is a summary of the tentative schedule. In the Managerial Accounting text E=Exercise

and P=Problem; these are located at the end of each chapter. In addition, there may be research and/or

discussions topics, and change in the weeks chapters are covered in class, changes will updated on the this

Website, Blackboard, and announced in class. Note: there may be possible changes to case studies

assigned.

Week Date Chap Topic Assignment

1 Feb 6 1 Introduction to Managerial Accounting (Ethics)

Case Study:

Apple, China

Factories

Feb 8 15

Financial Statement/Ratio Analysis E15-1, E15-2,

E15-3, E15-4,

E15-6, E15-7,

E15-8, E15-9,

P15-11, P15-

12

2 Feb 13 2 Cost Terms and Concepts Quiz Chap 15

(online)

E2-1, E2-2,

E2-3, E2-4,

E2-5, E2-6,

E2-7, E2-8,

E2-9, E2-12

Case Study;

Maria Chavez

Catering,

analysis of

mixed costs

2 Feb 15 2 Cost Terms and Concepts Quiz Chap 15

(online)

P2-14, P2-16,

P2-18

Due: Case

Study; Maria

Chavez

Catering,

analysis of

mixed costs

3 Feb 20 Holiday (President's Holiday)

3 Feb 22 3 Systems Design - Job Costing Case Study:

Harvard

Business Case

(Youngstown)

E3-1,E-3-2,

E3-3, E3-4,

E3-5, E3-6,

E3-8, E3-9,

E3-10,E3-12,

E3-18 P3-24,

P3-27

4 Feb 27 3 Systems Design - Job Costing (cont) Due: Case

Study;

Harvard

Business

Study

Case Study;

3-29 (Lenko

Products)

Feb 29 4 Systems Design - Process Costing E4-2, E4-3,

E4-4, E4-6,

E4-7, Pr4-18

5 Mar 5 4 Systems Design - Process Costing (cont) Due: Case

Study; 3-29

(Lenko

Products)

Mar 7 4 Appendix 4B Service Dept Allocations Pr4B-6

6 Mar 12 Assessment Chapters 2,3 & 4 95 points

Mar 14 5 Cost/Volume/ Profit E5-1, E5-2,

E5-4, E5-5,

E5-6, E5-7,

E5-8, E5-11,

E5-12

7 Mar 19 5 Cost/Volume/Profit (cont) Pr5-19, Pr5-

23; Case

study

PowerTime &

Haltom

Mar 21 7 Activity Based Costing E7-1, E7-2,

E7-3, E7-4,

E7-5, E7-7,

E7-8; Due:

Case study;

PowerTime &

Haltom Due

8 Mar 26 7 Activity Based Costing (cont) Pr7-18, Pr7-

20, Case

Study 7B-5

Mar 28 8 Profit Planning E8-1, E8-2,

E8-3, E8-4,

E8-5, E8-6,

E8-7, E8-8,

E8-9, E8-10

9 Apr 2 8 Profit Planning (cont) Pr8-16, Pr 8-

17, In class

exercise Pr8-

26

Due; Case

Study; 7B-5

Case Study:

Cabrillo

Music

Apr 4 Review Chap 5, 7 & 8

Note: Spring Break April 9 - April 14

10 Apr 16 Assessment Chapters 5, 7 & 8

Apr 18 9 Flexible Budgets and performance analysis E9-1, E9-2,

E9-3, E9-4,

E9- 8, E9-9,

E9-11, E9-12

11 Apr 23 9 Flexible Budgets (cont.) Due: Case

Study;

Cabrillo

Music, Pr9-

20,

Case Study;9-

28 (Munchkin

Theater)

Apr 25 10 Standard Costs and Operating Performance

Measures

E10-1, E10-2,

E10-3, E10-4,

E10-6, E10-8,

12 Apr 30 10 Standard Costs (cont) Pr10-11,

Pr10-15 Due:

Case Study;9-

28 (Munchkin

Theater)

May 2 12 Relevant Costs for Decision Making E12-1, E12-2,

E12-3, E12-4,

E12-5, E12-12

13 May 7 12 Relevant Costs (cont) Pr12-19,

Pr12-19,

Pr12-20

May 9 Assessment Review Chapters 9, 10 & 12

14 May 14 Assessment Chapters 9, 10 & 12

May 16 13 Capital Budgeting Decisions E13-1, E13-2,

E13-4, E13-6,

E13-11

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

Pr13-21

May 23 Capital Budgeting (cont)

16 May 29 -

June 2

Final Assessment Chapter 13 & 14, Only

Final Note: See Calendar Tab for Final Schedule

Grading:

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

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

Assignment Points

Discussion: Group/Individual Case Studies (8 @ 30 points ea) 240

Assessment 3 @ 100 points ea 300

Final and Chapter Quiz 100

Learning Systems BlackBoard Participation and Use 50

Homework, other assignments and class participation 420

Total 1110 pts

Grading Scale:

Percentage of Points Grade

90-100% A

80-89% B

70-79% C

60-69% D

50% and below F

Note: If you decide to drop this class, it is your responsibility to officially withdraw to avoid

a letter grade. P/NP (Pass / No Pass) is available by making arrangement with the

instructor prior to the published date on the calendar for making this change.