revised acct 3039 course guide
DESCRIPTION
Advanced management accountingTRANSCRIPT
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
1
THE UNIVERSITY OF THE WEST INDIES, ST. AUGUSTINE
FACULTY OF SOCIAL SCIENCES
DEPARTMENT OF MANAGEMENT STUDIES
COURSE CODE : ACCT 3039
COURSE TITLE : MANAGEMENT ACCOUNTING II
(formerly Advanced Management Accounting)
LEVEL : III
CREDITS : 3
PRE-REQUISITES : ACCT 2021 COST & MANAGEMENT ACCOUNTING
MGMT 2023 FINANCIAL MANAGEMENT I
CO-REQUISITE : ACCT 3041 ADVANCED [FINANCIAL] ACCOUNTING
ACADEMIC YEAR : 2013/2014
SEMESTER : II
COURSE GUIDE
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
2
Welcome Letter to Student
Dear Student,
Welcome to ACCT 3039 Advanced Management Accounting. My name is Mrs. Koshina Raghunandan-Mohammed and I will be your instructor for this course. This
course is one of two Advanced Accounting courses designed primarily for third year students pursuing the
BSc Special or Major in Accounting.
Let me take this opportunity to tell you a little about my philosophy on teaching.
My Teaching Philosophy
I recognize that my students are diverse and therefore learn differently. Consequently, as lecturer / educator,
my teaching philosophy is to provide my students with a solid foundation in the Accounting discipline,
moving them beyond the basic understanding of what is to the point where they can articulate that they possess superior skills in problem solving and critical thinking, focusing on probing questions such as
why, so what, what if and how. Additionally, I create a truly supportive environment that facilitates not only continuous learning but also the development of the students ability for thinking creatively and critically.
I achieve these through the creation of a collegial environment where we can agree to disagree. These also
influence the way in which I conduct my classes as well as the activities I prepare for the classroom
environment [F2F sessions and the virtual classroom] thus allowing for active student engagement in the
curricula. I encourage my students to reach their potential and be extraordinary.
Course Guide
You may have questions about what this course is about, the purpose of this course [how it integrates into
your programme of student], the course content, coursework assessments and so forth. This course guide
serves as your map of the course. Its purpose is to steer you through your experience in the course. The guide
provides you with the course curriculum and how the course will be executed. Please keep this handy!
Final Remarks
I look forward to meeting you and I hope that the time we spend together, in the classroom and in the
myelearning space, is both exciting and enriching.
Your course instructor,
Mrs. Raghunandan-Mohammed
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
3
Course Description
ACCT 3039 Advanced Management Accounting is a final year specialized Accounting course that focuses on the application of management accounting to assist management in a range of
planning, control and decision making scenarios. Students will benefit from this course, as they will
see, through the use of case studies, how firms use advanced management accounting techniques.
This course is organized into modules that are content-specific topics. The course is taught over a
thirteen (13) week semester. We will meet for four (4) hours each week. You will also attend a one
(1) hour tutorial session each week for twelve of the thirteen weeks (starting during week 2). An
overview of the course material is as follows:
Decision Making Cost-Volume-Profit Analysis Performance Measures Transfer Pricing Budgeting [behavioural approach] Activity Based Costing &
Management
Service Centre Cost Allocation Environmental issues
Intellectual Capital Emerging Management Practices Variance Analysis, Reporting &
Expectation
Measuring Quality Investing to develop Future
Capabilities Technology
Incentive & Compensation Systems Balanced Scorecard
The pre-requisites for this course are ACCT 2021 Cost and Management Accounting and MGMT 2023 Financial Management I. On successful completion of these courses, the student should be able to demonstrate that he/she has mastered the learning objectives identified below:
ACCT 2021 MGMT 2023
1) Identify patterns and estimate cost - using analyses such as LCA, regression & high-
low.
1) Identify the goals of the firm and analyze the firms position with respect to wealth maximization,
corporate governance, the role of business ethics and
the agency issue
2) Recall CVP analysis and explain how it is used in profit planning. Discuss the
limitations of CVP analysis. Refine the
CVP model to accommodate for tax and
bonus
2) Perform Financial Statement Analysis to evaluate the firm use of financial ratios, comparative, horizontal & vertical analyses, Z-score, leverages and others
3) Prepare financial analyses, using the incremental approach, to aid in short term
decision-making
3) Prepare, compare and analyze the Statement of Cash Flows. Prepare and evaluate pro forma statements
and in the process determine the external funds
required.
4) Explain and determine quality viewpoints, types & measurement
4) Time Value of Money - Compute Future and Present Value and examine its applications
5) ABC, ABM & Target Costing define, explain & compute
5) Fundamentals of Financial Investment define, describe, measure/compute risk and return
6) Variance Analysis - Reconcile a firms Actual Results with its Master Budget
6) Value Stocks and Bonds using appropriate models
7) Explain Responsibility Accounting and compute Transfer Prices
7) Explain and derive cash flows for the Capital Budgeting Decision
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
4
ACCT 2021 MGMT 2023
8) Perform process costing calculations with
both rework and spoilage
8) Use the Capital Budgeting Tool Kit to evaluate capital projects
9) Allocate Joint Production Costs to main products using several techniques and
account for byproducts and scrap
9) Evaluate capital projects - taking account of risk - using Break-Even analysis and Risk Adjustment
techniques
10) Compute and allocate Common Costs to departments using several methods
10) Discuss the major assumptions of the cost of capital. Calculate the cost of four specific sources of capital.
Compute WACC. Evaluate the Breakpoints (BPj) and
the weighted marginal cost of capital. Explain the
WMCC and its use with the IOS to make financing/
investment decisions
11) Compute and allocate Service Centre Costs to production departments.
Should the student not possess these pre-requisites, I profoundly urge him/her to spend quality time
reviewing the content of these courses. In this regard, I will make myself available to assist these students in
developing the competencies required for this course. I also suggest that these students sit in the class
sessions of the pre-requisite courses.
This course is one of two Advanced Accounting courses designed for third year Accounting students. The
second Advanced Accounting course is ACCT 3041 Advanced [Financial] Accounting which is a co-requisite for this course. These courses complement each other as the student is exposed to both quantitative
and qualitative information used for planning, controlling and decision-making.
Please note that if the student cannot demonstrate that he/she has met the course requirements, the instructor
has the right to decide on the appropriate course of action to take, which may be to withdraw you.
Course Rationale
Innovation is never on the brink of extinction! Rapid changes in the technological environment coinciding
with changes in the business environment imply increased competition for firms as geographical or market
boundaries disappear. These changes shape the way manufacturing and service firms operate, their modus
operandi. Today, through the click of a button, information is processed in a level of detail and volume never
thought possible 50 years ago. As a result, the management accounting systems used by firms have advanced
to accommodate rapid changes in theories and practice of management accounting. Firms are now
encouraged to think globally, act locally.
Management accounting practitioners are no longer regarded as dead men walking, only scorekeepers of past performance. Today, these practitioners are key holders to the firms success, where their input is essential for the firms achievement of excellence at the operational level. These professionals provide management with financial and nonfinancial information that also assists in the formulation and
implementation of new strategies.
This course is designed primarily for final year students pursuing the BSc Special or Major in Accounting.
The purpose of this course is to assist the students in developing and applying the foundations principles, concepts and techniques, learned in their first and second year Accounting courses to practical situations.
More so, over the 13 weeks, the students will extend their knowledge of Management Accounting by
reviewing and examining new management accounting practices that have been adopted in the industry.
Students will also be required to justify, defend and support their position on contentious management issues
that firms face on a regular basis. Additionally, students must be able to appreciate and evaluate the feedback
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
5
provided by their peers, once the feedback is constructive and thought provoking [analytical, insightful,
informative and non-judgmental].
Instructors Information
Name: Mrs. Koshina Raghunandan-Mohammed Office: Rm. 209, Department of Management Studies
Phone: 662.2002 ext 83303
Email: [email protected] [preferred method of contact] Office Hours: Thursday 12 noon 2 pm; Also by appointment Lecture Hours: Tuesdays 8:00 am 10:00 am FSS 100 and Thursdays 9:00 am 11:00 am FSS 101
Student and Instructor Expectations
This course utilizes a blended learning approach, which involves both the traditional face-to-face [F2F] class
sessions and online activities in the myelearning space. You should make every effort to actively participate
in all activities since you will learn from both student-to-student and student-to-instructor interactions and
collaborations.
You, the student, are expected to do the following while enrolled in the course:
Attend all scheduled lectures and tutorial sessions because you will be responsible for all information and material presented in every class.
Notify me in advance if you must arrive late to class or leave early because arriving late or leaving early interrupts the entire class. Please be polite!
Log in to the myelearning space regularly to access readings and resources, to post questions or concerns, to work on assignments and for updates.
Uphold the aforementioned classroom etiquette [code of conduct during class] throughout the semester:
Switch off all cellular phones and beepers before the start of each class session Be civil at all times. We can disagree without being disagreeable Come to class adequately prepared to discuss the assigned topic, problems and cases. This
implies reading all assigned materials and attempting all assigned problems and cases before the
start of each class
Participate in class discussions. Questions on the subject matter are welcomed at any time Deadlines are firm! Plan to meet them by managing your time well and keeping track of due
dates. Plan to spend adequate time on the assigned material (reading and completing
assignments) prior to class.
Dress appropriately and conduct yourself in a mature, polite and considerate manner in class
In the event of disruptive behaviour, the instructor has the right to ask a student to leave the
classroom.
You can expect me, the instructor, to:
Inform you of any changes to the course in a timely fashion Uphold the same code of conduct as you throughout the semester Respond to your queries within 24 to 48 hours.
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
6
Course Content
TOPIC 1: PROFIT PLANNING & DECISION MAKING
TOPIC 2: COST-VOLUME-PROFIT [CVP] ANALYSIS
TOPIC 3: PERFORMANCE MEASURES
TOPIC 4: TRANSFER PRICING
TOPIC 5: BUDGETING BEHAVIOURAL APPROACH [THE MANAGEMENT
ACCOUNTANT AND HUMAN BEHAVIOUR]
TOPIC 6: ACTIVITY BASED COSTING & MANAGEMENT
TOPIC 7: ASSIGNING SERVICE CENTRE COSTS
TOPIC 8: ENVIRONMENTAL ISSUES, INTELLECTUAL CAPITAL & EMERGING
MANAGEMENT PRACTICES
TOPIC 9: VARIANCE ANALYSIS, REPORTING & EXPECTATION
TOPIC 10: MEASURING QUALITY
TOPIC 11: INVESTING TO DEVELOP FUTURE CAPABILITIES TECHNOLOGY
TOPIC 12: INCENTIVE & COMPENSATION SYSTEMS
TOPIC 13: BALANCED SCORECARD
Goals / Aims
The aim of this course is to develop and extend the knowledge and skills of the student to critically evaluate
and competently utilize management accounting information in planning, controlling [including performance
evaluation] and decision-making situations.
Course Objectives
At the end of this course, the student will be able to:
1. Identify short-term decision making tools and in the process, evaluate and choose among alternative courses of action, by applying relevant costing, to facilitate effective decision making
2. Examine financial and non-financial measures in the performance evaluation in an organization 3. Demonstrate the use Activity Based Costing / Management, an alternative management accounting
technique
4. Devise strategies to deal with ethical practices, environmental issues and corporate social responsibility reporting
5. Describe the importance of behavioural aspects of budgeting to a successful budgeting process 6. Perform variance analysis and demonstrate how managers use statistical models to interpret variances
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
7
Topic Objectives
TOPIC 1: PROFIT PLANNING & DECISION MAKING
The student, using a series of problems and one case study, will be able to identify, evaluate [through the
preparation of an analysis] and choose among future alternative courses of action by applying relevant
costing to the following decisions:
a. Special orders b. Outsourcing (make or buy) c. Product Combinations with and without constraints [scarce resources] d. Add or Drop a Product Line e. Processing beyond the Split-off Point f. Pricing specifically the use of Variable versus Absorption Costing
The student will also be able to recognize ethical issues and provide advice on a suitable course of action
particularly in relation to outsourcing decisions.
TOPIC 2: COST-VOLUME-PROFIT [CVP] ANALYSIS
Working as part of a team [group of 5 students] on case studies in addition to drawing on several problems,
the student will be able to:
a. Identify cost behavior patterns b. Estimate cost using cost equations c. Recall what CVP analysis is and explain how companies use CVP information in decision making
TOPIC 3: PERFORMANCE MEASURES
Using several questions - problems and short cases, the student will be able to:
d. Identify the roles that performance measures serve in organizations e. Outline the guidelines or criteria that apply to the design of performance measures f. Identify the common short-term financial performance measures, determine how they are calculated
and examine how they are used
g. Recognize and question why a companys management should focus on long-run performance h. Outline the factors that managers should consider when selecting nonfinancial performance
measures
i. Explain why is it necessary to use multiple performance measures
TOPIC 4: TRANSFER PRICING
The student, using a number of short cases, will be able to:
a. Identify the types of transfer prices used in organizations b. Explain why such prices are used c. Explain the factors to be taken into consideration when deciding on an appropriate transfer price d. Determine the appropriate transfer price or range of transfer prices e. Discuss the effects of different transfer prices on managements attitude to intra-company business f. Explain the difficulties multinational corporations encounter when using transfer pricing
TOPIC 5: BUDGETING BEHAVIOURAL APPROACH [THE MANAGEMENT ACCOUNTANT AND HUMAN BEHAVIOUR]
Using short cases, the student will be able to:
a. Outline the issues and terms in formal incentive models - Wealth leisure and risk attitudes - Individual honesty and role of contract monitoring - Choosing the right manager and role of information - Balancing incentive and return considerations
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
8
b. Recognize the problems of obtaining and using information for standards and budgets - Using information for rewards and control [the moral hazard problem] - Moral hazard and information impactedness
c. Describe the agency issue by focusing on the setting, the motivational problem and the principals problem
d. Examine how companies elicit honest revelation of privately held beliefs - The role of uncertainty in the Soviet Incentive Model - Limitations of the Truth-Inducing Budget Scheme - Truth-Inducing Schemes for Resource Allocation Decisions
e. Explain the role of insurance
TOPIC 6: ACTIVITY BASED COSTING & MANAGEMENT
The student, using a case study and problem, will be able to:
a. Define activity-based costing and management b. Outline the conditions under which activity-based costing is useful in an organization c. Identify what information activity-based costing systems provide to management d. Recognize the criticisms that have been directed at activity-based costing
TOPIC 7: ASSIGNING SERVICE CENTRE COSTS
The student, using a short case study and problem, will be able to:
a. Define a service centre and distinguish a service centre from a production centre b. Distinguish between the methods used to allocate costs in a cost pool single-rate and dual-rate
methods
c. Recognize how divisional incentives are affected by the choice between (i) allocation based on budgeted and actual rates and (ii) budgeted and actual usage.
d. Compute and allocate multiple service centre costs using the direct method, the step-down method and the reciprocal method
TOPIC 8: ENVIRONMENTAL ISSUES, INTELLECTUAL CAPITAL & EMERGING
MANAGEMENT PRACTICES
Using a series of problems and a short case study, the student will be able to:
a. Discuss the possible ethical and legal implications of disposing of waste, scrap or by-product material in an non environmental friendly manner
b. Describe intellectual capital what it is and how it can be classified c. Discuss how firms can disclose intellectual capital and outline the key elements that should be
disclosed in an intellectual capital report
d. Explain how business process reengineering initiatives cause radical changes in the way firms execute processes
e. Identify the competitive forces driving decisions to downsize and restructure operations f. Outline in what ways, and explain why, the operations of many firms are becoming more diverse g. Describe how the increasing diversity of a firms operation affects the roles of the firms accounting
systems
h. Express why firms are adopting enterprise resource planning systems and how such systems are used i. Describe what strategic alliances are and what forms they take and explain why firms participate in
them
j. Identify the characteristics of open-book management and explain why its adoption require changes in accounting methods and practices
k. Discuss the three generic approaches that firms can take in controlling environmental costs
TOPIC 9: VARIANCE ANALYSIS, REPORTING & EXPECTATION
The student, using a multitude of problems and one case study, will be able to:
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
9
a. Describe possible sources of variances and determine whether they fall within management control b. Explain the term management by exception and discuss how the aggregation of performance
measurement data [variance reports] assists management by exception
c. Discuss the approaches managers can take when deciding whether to investigate a variance to determine its underlying cause
d. Calculate the cost of investigating and not investigating variances e. Distinguish between responsibility and blame in variance reporting f. Discuss the disposition or appropriate treatment of variances do we charge the variance as a period
cost, a product cost or as a deferred charge?
g. Distinguish why there is greater uncertainty in dealing with future events than with past events h. Discuss the four generic approaches or strategies to managing uncertainty
TOPIC 10: MEASURING QUALITY
Using selected problems and one case study, the student will be able to:
a. Recall - what quality is and from whose viewpoint it should be evaluated - what benchmarking is and why companies engage in it - what constitutes the total quality management philosophy - the types of quality costs and how they are related - how cost of quality is measured
b. Measure customer performance by scrutinizing market and account share, customer retention, customer acquisition, customer satisfaction and customer profitability
c. Discuss why a company should go beyond the core to meet customer expectations d. Examine the internal business of a company focusing on operational excellence [time, quality and
cost measurements] and innovation measures
TOPIC 11: INVESTING TO DEVELOP FUTURE CAPABILITIES TECHNOLOGY
The student, using case studies, will be able to:
a. Discuss whether new management accounting theories are needed by examining the following considerations
- Short time horizon - Excessively high discount rates - Risk adjustments - Alternatives to new investments - Incremental versus global analysis - Front-end investment costs
b. Outline how the benefits from a new process can be measured c. Discuss how companies can invest in organizational capabilities
TOPIC 12: INCENTIVE & COMPENSATION SYSTEMS
The student, using case studies, will be able to:
a. Discuss the expectancy view of behavior b. Distinguish between intrinsic and extrinsic rewards c. Assess the need to tie rewards to performance d. Evaluate the ways in which rewards are tied to performance
- Rewards based on financial performance - Rewards based on group or individual performance - Rewards based on nonfinancial measures of performance
e. Identify the important attributes of a compensation system f. Discuss other reward systems gainsharing, piecerate systems, labour-related plans and bonus
systems
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
10
g. Recognize what difficulties multinational firms encounter in trying to measure performance and design compensation plans
TOPIC 13: BALANCED SCORECARD
The student, using case studies, will be able to:
a. Describe the four perspectives of the balanced scorecard b. Explain how the balanced scorecard can be used to measure performance c. Assess whether the four perspectives are sufficient measures of a firms performance
Assignments
Ungraded [Not for Credit] Assignments
For each class session, students, working in groups or individually, will be assigned to prepare a problem or
exercise. These assignments will not be collected and graded. The purpose of these assignments is to help
the student acquire the necessary tools required for the preparation of the assigned case.
Graded [Credit] Assignments
The graded assignments are the case studies indicated in the course content. There will be two types of case
assignments individual case write-ups and group case write-ups. The group case study is indicated on the course content sheet as case to be completed in groups of 5. Students should visit the following website/link, which provides a Hands-on Guide: How to Analyze a Case Study:
http://wps.prenhall.com/bp_laudon_mis_10/62/15948/4082759.cw/index.html
Please ensure that you read this very carefully before attempting any case assignments.
(i) Individual Case Assignments For several class sessions, students will be assigned, in advance, a case to be prepared and written up for
submission individually. The assigned case study must be turned in before the start of each class. Any
student failing to submit an assignment will receive a score of zero for that assignment. Late submissions
will receive a penalty of 10% of the marks available for the assignment for each day or part thereof that
the assignment is late.
(ii) Group Case Assignments For Topic 2 C.V.P. Analysis, the Rapid Rail Experiment Case must be prepared and written up for
submission as a group. The assigned case study is due on February 13, 2014 and must be turned in before the
start of the class. Any group failing to submit an assignment will receive a score of zero for that assignment.
Late submissions will receive a penalty of 10% of the marks available for the assignment for each day or
part thereof that the assignment is late. This penalty will be applied to the entire group.
In class, each group must present the topic assigned and should not only present the theory but also their
views / position, defending it and appreciating and evaluating the statements made by their peers. Each
group will be required to submit a short research paper on any company [to be selected by the group] based
on the topic assigned and their findings. This paper is due on the date of group presentation and must be
turned in before the start of the session.
Logistics:
i Students must form themselves into groups of 5 persons during the first class. The membership of each team MUST remain intact for the duration of the course.
ii The submission must be word-processed or typed using a 12-point font with double spacing.
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
11
iii The actual write-up for submission should not exceed 8 pages excluding cover page.
iv Refer to page 20 for a sample cover page that should be submitted with each project.
v Two copies of the completed Case Study Assignment must be submitted.
Assessment:
i All case studies will be assessed using the generic rubrics attached to the Course Outline.
ii There will be a group assessment of each members contribution to the completion of the Case Study to ensure that free-riding is appropriately penalized. Each group member MUST assess the performance of all fellow group members during the preparation of the assignment. Your assessment
of each member should be shared with that group member prior to its submission. Be prepared to
justify both favorable and unfavorable assessments to the lecturer. Based on this assessment, it is
possible for one individuals grade for a Group Assignment to differ from that of his/her group members. The Case Study Group Member Evaluation Form is attached to the Course Outline.
Course Assessment
Your final grade will be based on the following:
Individual Case Assignments & Class Work - 5%
Group Presentations - 5%
Group Case Assignments - 10%
Coursework Examination - 20% [March 14, 2014 1 pm @ JFK Aud] Final Examination (2 hours) - 60%
100%
Teaching Strategies
There will be two (2) sessions per week for two (2) hours each. A combination of text and course materials
is used. Students must prepare the assigned text and case material before the relevant classroom session. The
majority of the class will be spent examining case studies. This method places emphasis on the preparation
for, and classroom discussion of, a situation that is described in the case. This teaching method is contrasted
with the textbook/problem method where the emphasis lies on memorizing and understanding materials
contained in a text and working gout the numerical solution to problems and exercise.
In case studies, there is seldom a correct solution. However, cases are as close as one can come to business realities in the classroom. Thus, the case approach encourages students to think critically and creatively by
putting issues into perspective. Therefore, a significant and valuable portion of the learning occurs through
student interaction [co-operative efforts].
Resources
Required Texts:
1. Advanced Management Accounting Kaplan & Atkinson, 3rd Ed., Prentice Hall Pub. [K] 2. ACCT 3039 Management Accounting II compilation (McGrawHill) [MA2C] compilation of
chapters from 2 texts Managerial Accounting by Hilton and Platt [MA] and Cost Management by Blocher, Stout, Juras and Cokins [CM]
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
12
Highly Recommended Texts:
1. Managerial Accounting by Moore & Jaedicke (5th Ed.) Pub. South-Western [M&J] 2. Cost Accounting by Moriarity & Allen (3rd Ed.) Pub. Wiley Co. [M&A] 3. Cost Accounting: Foundations and Evolutions by Kinney & Raiborn (9th Ed.) Pub. Southwestern [KR] 4. Accounting Text and Cases Anthony, Hawkins & Merchant, 13th Ed., McGraw-Hill. [A&H] 5. Cost Accounting: A Managerial Emphasis by Horngren, Foster, Datar et al (14th Ed.) Pub. Prentice Hall
[HFD]
6. Managerial Accounting by Garrison & Noreen (14th Ed.) Publ. McGraw-Hill [GN]
Journals and Other Readings:
Journal articles add to the students exposure to non-textbook accounting topics and issues. Some of these readings are provided below:
1. Why you should consider activity-based costing by Robert Gruber [Small Business Forum Journal Spring 1994]
2. Budgeting: Is it a Technical or Behavioural Process by Ian Campbell [Management Accounting Magazine February 1985]
3. The Measurement of Quality Costs An Alternative Paradigm by Thomas Albright and Harold Roth [Management Accounting 1995]
4. Figures of Hate by Hope and Frazer [Financial Management February 2010 pgs 22-25] 5. Disclosing the Invisible: Publishing Intellectual Capital Statements by Bernard Marr [CMA
Management Magazine August/September 2008 pgs 35-39] 6. ACCA Student Accountant Magazines (http://www.accaglobal.com/en/student/acca-qual-student-
journey/student-accountant/sa-archive/2013-archive.html)
7. ACCA Accounting and Business Magazines (http://www.accaglobal.com/en/member/accounting-business/archive-international.html)
Readings
The expected readings - chapters and relevant texts are presented below. Students are urged to read these
chapters in advance of the relevant class sessions as well as prepare assignments accordingly.
Topic Chapter Text Assignment Questions & Cases
1 Profit Planning & Decision
Making
9
26
5
14 [MA]
10
13
M&J
A&H
K
MA2C
KR
GN
P9-1 to P9-12
Case 26-1
P5-1
Cases 62 & 63
E39, P47, P48, P49, P51, P53, P57
P32
Class Problem 13-27 (13th ed)
2 C.V.P. Analysis
1
9 [CM]
4
13
K
MA2C
M&A
KR
P1-5
P38; P40; P42; P43
P4-61 to P4-69
Rapid Rail Experiment Case [Group
Case Assignment - to be completed in
groups]
P63
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
13
Topic Chapter Text Assignment Questions & Cases
3 Performance Measures
10
13 [MA]
14
23
K
MA2C
KR
HFD
P10-1, P10-2, P10-5
Case 50, P37, 38, 40, 44
Cases 45, 46, 47, 51, 61, 64, 65, 66
Class Problem 17 HFD 14th ed. Test
Bank pgs 47-48 [objs 2 & 6]
4 Transfer Pricing
9
13 [MA]
11A
13
22
K
MA2C
GN
KR
HFD
Case Del Norte (pg 486), P9-5
Case 52, P47, P48
Case 11-A7
Cases 64, 66, 67, 68; P46, 47, 50
Class Problem Artic Air HFD 14th
ed. Test Bank pgs 18-19
ACCT 2021 Notes
5 Budgeting Behavioural
approach
14
Handout
9 [MA]
6
8
K
---
MA2C
HFD
GN
Cases 14-9, 14-10
Handout with questions
Cases 43 & 44; P41
P6-39; P6-40
P8-22, 8-25, 8-28
6 Activity-based Costing &
Management
4 & 5
5 [MA]
5
K
MA2C
HFD
P5-2, Case John Deere
Cases 69 to 7; P60; P66
---
ACCT 2021 Notes P135
7 Assigning Service Centre Costs 3
7 [CM]
15
K
MA2C
HFD
P3-2
P36; P39; P40; P41
P15-34, 15-35
8 Environmental Issues,
Intellectual Capital & Emerging
Management Practices
Handout
17 [CM]
11
19
---
MA2C
KR
KR
---
P58
Case 55
P30, 32, 36, 37, 40, 41
9 Variance Analysis, Reporting &
Expectation
9
20
16
K
M&A
KR
P9-2
Worksheet with problems 20-11 to
20-27, 20-28, 20-30, 20-31, 20-33,
20-34
P45 to 47
10 Measuring Quality
11
17 [CM]
17
19
K
MA2C
KR
HFD
Texas Instrument Case (pg 582)
E31, E32; E47; P50; P52; P55; P56
P23, 24, 31, 34, 43, 47, 49
P 19-27, 28, 38
11 Investing to develop Future
Capabilities Technology
12
16 [MA]
15
K
MA2C
KR
Wellington Tap Case (pg 627)
Case 57; P44; P54
Case 55
12 Incentive & Compensation
Systems
13
14
10
K
KR
KR
Analog Devices Case (pg 714)
Cases 40, 51, 61, 63, 67
Case 47
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
14
Topic Chapter Text Assignment Questions & Cases
13 Balanced Scorecard 8
14
17
K
KR
KR
Chadwick Inc. Case (pg 380)
Case 57
P54, 55
Course Calendar
The course schedule below highlights the weekly topics and associated readings plus the due dates of the
relevant assignments.
Topic Ch Text Assignment Deadlines
1 Profit Planning & Decision
Making
9
26
5
14
10
13
M&J
A&H
K
MA2C
KR
GN
P9-1 to P9-12
Case 26-1
P5-1
Cases 62 & 63
E39, P47, P48, P49, P51, P53,
P57
P32
Class Problem 13-27 (13th ed)
January 23-28,
2014
2 C.V.P. Analysis 1
9
4
13
K
MA2C
M&A
KR
P1-5
P38; P40; P42; P43
P4-61 to P4-69
Rapid Rail Experiment Case
[Group Case Assignment - to be
completed in groups]
P63
January 28-30,
2014
Due Date:
February 13, 2014
3 Performance Measures 10
13
14
23
K
MA2C
KR
HFD
P10-1, P10-2, P10-5
Case 50, P37, 38, 40, 44
Cases 45, 46, 47, 51, 61, 64, 65,
66
Class Problem 17 HFD 14th ed.
Test Bank pgs 47-48 [objs 2 &
6]
February 04-06,
2014
4 Transfer Pricing 9
13
11A
13
22
K
MA2C
GN
KR
HFD
Case Del Norte (pg 486), P9-5
Case 52, P47, P48
Case 11-A7
Cases 64, 66, 67, 68; P46, 47, 50
Class Problem Artic Air HFD
14th ed. Test Bank pgs 18-19
February 11, 2014
February 13, 2014
5 Budgeting Behavioural
approach
14
HO
9
6
8
K
---
MA2C
HFD
GN
Cases 14-9, 14-10
Handout with questions
Cases 43 & 44; P41
P6-39; P6-40
P8-22, 8-25, 8-28
February 18-20,
2014
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
15
Topic Ch Text Assignment Deadlines
6 Activity-based Costing &
Management
4,5
5
5
K
MA2C
HFD
P5-2, Case John Deere
Cases 69 to 7; P60; P66
---
February 27-27,
2014
ACCT 2021 Notes P135
7 Assigning Service Centre
Costs
3
7
15
K
MA2C
HFD
P3-2
P36; P39; P40; P41
P15-34, 15-35
March 06-11,
2014
8 Environmental Issues,
Intellectual Capital &
Emerging Management
Practices
HO
17
11
19
---
MA2C
KR
KR
---
P58
Case 55
P30, 32, 36, 37, 40, 41
March 13-18,
2014
9 Variance Analysis,
Reporting & Expectation
9
20
16
K
M&A
KR
P9-2
Worksheet with problems 20-11
to 20-27, 20-28, 20-30, 20-31,
20-33, 20-34
P45 to 47
March 20, 2014
March 25-27,
2014
10 Measuring Quality 11
17
17
19
K
MA2C
KR
HFD
Texas Instrument Case (pg 582)
E31, E32; E47; P50; P52; P55;
P56
P23, 24, 31, 34, 43, 47, 49
P 19-27, 28, 38
April 01-03,
2014
11 Investing to develop Future
Capabilities Technology
12
16
15
K
MA2C
KR
Wellington Tap Case (pg 627)
Case 57; P44; P54
Case 55
April 08,
2014
12 Incentive & Compensation
Systems
13
14
10
K
KR
KR
Analog Devices Case (pg 714)
Cases 40, 51, 61, 63, 67
Case 47
April 10-15,
2014
13 Balanced Scorecard 8
14
17
K
KR
KR
Chadwick Inc. Case (pg 380)
Case 57
P54, 55
April 17, 2014
Additional Information
Academic Integrity
It is each students responsibility to ensure that when his/her name appears on any submission (e.g., Quiz, Group assignment), the content is his/her work. If it is the work of someone else, you must cite the source;
anything else is plagiarism and cheating. Any student who is guilty of such a violation on any submission
during the term will be reported to the Head, Department of Management Studies for disciplinary action. For
additional information on this matter, please consult your Student Handbook [Examination regulations for
First degrees, Associate degrees, Diplomas and Certificates]. If you are still unsure after reading the
handbook, please consult the deputy dean, Student Matters (Faculty of Social Sciences).
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
16
Attendance Policy
Attendance Registers will be maintained for lectures and tutorials because attendance at both is compulsory.
Each student must attend at least 75% of lectures and tutorials in order to sit the final examination. For additional information on this matter, please consult your Student Handbook [Examination regulations
for First degrees, Associate degrees, Diplomas and Certificates].
Words of Caution
It is difficult to teach a case method course if it is the only such course that the student has taken. For best
results, students must develop a certain attitude toward analysis and discussion of cases, and the learning
process is aided if this attitude is reinforced by their experience with cases in more than one course. A lone case course can be taught but the students and the instructor have a more difficult job because they need to
create the necessary attitudes and atmospheres.
Students, particularly those who have not been exposed previously to the case method, tend to feel
frustrated. They want the word. They think that somewhere there exists a set of rules, which, if carefully memorized and followed, will lead them to the correct solution. They also tend to be unhappy with the
variety of terms used by different companies for the same thing and by the general complexity and lack of
recognizable patterns in cases. Cases are messy and disorderly.
The feeling of frustration arises especially in the area of accounting. Students who have taken the elementary
courses in accounting taught by the textbook/problem approach often come away with the impression that
there is a well-defined body of principles to which there are relatively few exceptions. When they
subsequently start a course that uses cases, they need time to adjust and get over this incorrect notion.
Study Tips for this Course
Students should avoid cramming since this invites failure in the course. I suggest that the most effective and efficient way to succeed in this course is to regularly attend class and complete all assignments. You
learn accounting by doing / practising.
Grading System
The University Regulations governing the GPA [Grade Point Average] for B.Sc. Degrees in the Faculty of
Social Sciences are:
Grade A+ A A- B+ B B- C+ C C- D+ D F
Mark > 85 70-85 67-69 63-66 60-62 57-59 53-56 50-52 47-49 43-46 40-42 < 40
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
17
RUBRICS FOR CASE ANALYSIS
1. Written Report
CRITERIA EXCELLENT
10 - 8
Identification of the
Key Issues
Identifies & understands all of the main issues in the case by very clearly
separating the main issue(s) from the trivial issue(s)
Analysis of the Issues Insightful and thorough analysis of all the issues; excellent research into the
issues with clearly documented links to course and additional readings
Identification and
Evaluation of
Effective Strategies or
Solutions
Well documented, reasoned and justified solutions / strategies / courses of
action for all of the issues in the case
Organization /
Structure, Format,
Style, Grammar &
Mechanics
Exceptionally clear sense of unity and order; language extremely clear and
concise with flawless mechanic
MAXIMUM SCORE = 40
2. Group Presentation
CRITERIA EXCELLENT
4
Organization /
Structure
Presentation of information in logical and interesting sequence/ flow;
audience thoroughly understood and followed the presentation
Content & Subject
Knowledge
Comprehensive analysis of the case is presented in an exceptional manner
Mechanics Presenters voice is very clear; presenter uses correct and precise pronunciation of terms
Technology All visuals/graphics were clear and professional; visuals reinforce the
presentation; no grammatical errors or misspellings in presentation
Non-Verbal Effective use of eye contact, gestures and movement
Delivery Presenter exhibited high level of enthusiasm and confidence; all questions
answered fully and accurately; generated audience interest and interaction
MAXIMUM SCORE = 24
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
18
GROUP MEMBER EVALUATION FORM - CASE STUDY
Team Number/Team Name/ Name of Member Performing Assessment
___________________/___________________________/______________________________
Rate each group member (including yourself) using the following scale:
1 = poor
2 = needs improvement
3 = satisfactory
4 = very good
5 = excellent
After all group members have completed an assessment sheet, each member must share his/her ratings with
one another as a basis for more detailed feedback and discussion. This may be done privately or in the group,
depending on your groups preference.
DEFINITIONS:
Teamwork: Receptive to others input, works well with others, cooperative, sensitive to group process.
Quality of work: Knowledgeable about course material, has creative and sound ideas, produces solid written
work.
Motivation: Participates actively, contributes sufficient effort.
Reliability: Meets deadlines, is prompt, and attends meetings.
Fulfillment of Group Contract: Meets group expectations as outlined by your group contract (formal or
informal).
Overall Contribution: Overall assessment of that individuals contribution to the group.
Group
Members
Name
Teamwork Quality of
work Motivation
Reliability
Fulfillment of
Group
Contract
Overall
Contribution
1.
2.
3.
4.
5.
6.
NB: Please make copies of this form and use for submission with the group assignment.
Each Group member must submit one completed form with the group assignment.
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
19
RUBRICS FOR CLASS PARTICIPATION
Criteria Outstanding Good Marginal Unsatisfactory
5 4 3 2 1 - 0
Preparation In-class contributions
reflect thorough
preparation
In-class contributions
reflect good preparation
In-class contributions
reflect satisfactory
preparation
In-class contributions reflect
no or little preparation
Rationality of
ideas & insights
Ideas offered are
always substantive;
provides one or more
major insights for class
direction
Ideas offered are usually
substantive; provides
good insights and
sometimes direction for
the class
Ideas offered are
sometimes substantive
but seldom offer a major
direction for the class
discussion
No ideas offered are
substantive for class
discussion
Presentation of
arguments
Arguments are well
substantiated and
persuasively presented
Arguments are fairly
well substantiated and
sometimes persuasive
Arguments are
sometimes presented and
are fairly well
substantiated and
persuasive
Arguments not properly
presented or substantiated.
Adapted from the teaching material of V. Govindarajan
-
ACCT 3039 ADVANCED MANAGEMENT ACCOUNTING COURSE GUIDE
20
SAMPLE COVER PAGE TO BE USED FOR SUBMISSION OF ASSIGNMENTS
The University of the West Indies, St. Augustine
Faculty of Social Sciences
Department of Management Studies & SALCC
Assignment for: ACCT 3039 Management Accounting II
Assignment: < Insert number here >
Submitted to: < Insert Name of Lecturer here >
Submitted by:
Use template below as a guide
STUDENT NAME (Block Letters) ID NUMBER
1
2
3
4
5
Date of Submission: < Insert date here >