1 Dec 2013 ... elements of cost accounting systems and the use of product cost ... Course text:
Accounting: Text and Cases, Robert Anthony, any recent ...
Management Accounting Based on Case Studies Instructor: Douglas Coulter Semester:Fall 2013
Program：IMBA & MBA Time: 11-16 weeks Sunday mornings, at 8:30-11:00 and 11:00-13:30 am Thursday evenings, at 18:00-20:00 and
Credit Hour：30 Prerequisite：Basic Accounting
20:00-22:00 pm Credits：2 Location: Room 215 on Thursdays &Room 217 on Sundays ,Guanghua Old Building
Contact Information: Telephone: E-mail: Office Hours: Please get in touch with me to arrange a meeting. Brief Course Description The basic objective of the course is to improve students' understanding of the basic elements of cost accounting systems and the use of product cost information in decision making. The course will explore the importance of the way in which cost information is reporting and the way reporting systems can be used to highlight the factors which re important for management. The course will familiarize students with activity-based systems which account for costs of order processing and the handling and the means management uses to direct salesmen’s attention to the most profitable product-customer combinations. The course will focus on the use of flexible budgets and the importance of evaluating performance against the level of costs that should have been expected at the actual level of operation, rather than at a budgeted level. Students will gain understanding of the use of variances to measure capacity utilization and the absorption of fixed costs, and the development of diagnostic control systems. The course will analyze the use of the Balanced Scorecard in which objectives and measures are organized in themes that cut across perspectives, also how there are always opportunity costs associated with serving one client or another which are not included in traditional cost systems. Course Objectives Towards this end, the course will analyze how to structure management accounting, both contractually and organizationally; how to identify what information is most useful to management; and how to interpret the results of cost management systems.
The course intends to familiarize students with making the assumptions necessary in developing cost accounting systems.Students will gain practice making assumptions as a means of assessing different alternatives and will confront the difficulty of choosing between assumptions in uncertainty. The purpose is to develop students' judgment and reliance on their judgment in making managementaccounting decisions.
To achieve these goals, the course is organized around the students' preparation of written analyses beforehand and then a discussion of conclusions in class. The class consists of directed, but free discussion among students, and students will be frequently required to make class presentations. Since preparation beforehand and class discussion are the essence of the course, a specific number of written analyses and attendance at class are required.
Detailed course plan (Outline of Units) Date Topic Sunday,24 November 2013
Acquainting students with the nature of cost accounting, variable and fixed costs, the relevance of allocated costs, contribution margin, break-even analysis, the idea of variances
Thursday, 28 November 2013 Understanding the results of operation as they have been reported; understanding the economics of a business and to forecast potential change in income; understanding the importance in the way cost information is reported. Sunday,1 December 2013
Understanding the primary calculations that cost systems us to determine burden rate, the death spiral when production volume decreases and the burden rate increases, the difference between consumption and spending cost models.
Thursday 5 December 2013
Understanding the important role of a product costing system plays when a company changes business strategy and the development of an activity-based system, which accounts for costs of order processing and handling.
Sunday, 8 December 2013
Understanding the application of activity-based analysis to selling and administrative expenses, allocating them not at period costs, but as product costs.
Thursday, 12December 2013
Understanding the use of flexible budgets, evaluating performance against the level of costs that should have been expected at the actual level of operation, rather than at a budgeted performance level.
Date
Topic
Sunday, 15 December 2013
Understanding the relationship between capacity utilization and the absorption of fixed costs and the development of volume variance.
Thursday, 19 December 2013 Understanding the relationship between business strategy, critical performance variables, and diagnostic control systems Sunday, 22 December 2013
Understanding the Balanced Scorecard and the more recent approach by which objectives and measures are organized by strategic themes that cut across perspectives.
Thursday, 26 December 2013 Understanding fundamental questions about customer profitability. Even if costs could be assigned to all customers and clients properly, there are always opportunity costs associated with serving one client or another which are not included in traditional cost accounting systems. Teaching Methods To achieve the course's goals, the course is organized around the students’ preparation of written analyses beforehand and then a discussion of conclusions in class. The class consists of directed, but free discussion among students, and students will be frequently required to make class presentations. Textbooks Course text: Accounting: Text and Cases, Robert Anthony, any recent edition. All case material will be distributed in class.
References and readings All background reading and reference material will be distributed in class.
Rules students must follow Since preparation beforehand and class discussion are the essence of the course, in order to receive a grade and credit for the course, students are required to submit at the beginning of class at least eight out of ten written analyses and to attend at least eight out of ten classes. To receive a grade and credit for the course, students are also required to attend the final two classes which are mandatory. Course Assessment Grading will be 60% on written analyses and 40% on class participation.
