Accounting 4308

Advanced Managerial Accounting

Spring 2011

Professor: Dr. Michael A. Robinson

Office: Accounting Suite, Room 132
Office Hours: MW 12:30-2:00; TR 2:00-4:00
Phone: 710-6129
e-mail: Michael_Robinson@baylor.edu

Texts:
Cost Accounting: A Managerial Emphasis, Thirteenth Edition, by Horngren, Datar, Foster,
Rajan, and Ittner (Prentice Hall, 2009).
Learning Plans for Accounting 4308. Baylor Bookstore, 2010.

Prerequisites: You must have earned a grade of C or better in ACC 3302, ACC 3304, and
ACC 3310. Also, you must be enrolled in ACC 4330 and ACC 4350.

Objective: In 2002, the International Federation of Accountants (IFAC) issued a study of

Competency Profiles for Management Accounting Practice and Practitioners. The focus of
the study is “the mobilization and use of resources by organizations in ongoing value
creation, and how this can be managed effectively.” Management accountants play a key
role in this process by:

Predicting the costs of resources used for prospective future actions, and the returns
associated with the use of those resources
Helping managers decide how to deploy resources (investment, assignment,
allocation)
Providing structures for planning resource requirements and deployments
Measuring the costs of resources used and outcomes (performance, value created) of
the use of those resources
Controlling resources used

The objective of this course is to help you further develop your managerial accounting
knowledge base and skill set. You will learn concepts and techniques that accountants use to
produce the information that they, and business managers, need to make both planning
decisions and control decisions. The focus is on understanding why techniques are used, not
simply knowing how to use them.

Office Hours: I will try to be in my office during the times shown in the schedule above. I also
am happy to make an appointment with you at another time, but you don’t have to make an
appointment with me just because it’s outside the formal office hours. Please drop by at any
time to discuss this course or anything else you want to talk about. If I am in the office, my
time is your time. (Of course, there will be some exceptions during the semester.) Also,
sometimes it gets pretty noisy on my hall, and I shut my door so I can “hear myself think.” If
the door is shut, knock!
Class Preparation: Your course packet includes a learning plan for each class. Learning plans
include both before-class assignments and after-class assignments (homework). You should
complete all required readings, problems, and other before-class assignments before class!
These should prepare you to participate in class discussions, and the work you do solving
problems before we go over them in class will be especially helpful in understanding the
computations that you must master.

Attendance: Regular class attendance and participation is essential for your learning. You are
responsible for sharing your understanding and insights with the class in order to advance the
class’s collective knowledge and skills. Every person in the class has something valuable to
contribute, and because all students aspire to become professionals, I am confident that your
contributions will be treated with respect. Note that University policy requires you to attend
at least 75% of classes in a course in order to receive credit for the course. In ACC 4308,
that means seven (7) is the maximum number of absences allowed. If you miss eight (8)
classes, whether excused or unexcused, you will receive a grade of F.

I will take roll each day at the beginning of class. If you are not in the room when I
take roll, you will be counted tardy. Two tardies will count as one absence. If you
notice that I have already taken roll when you get to class, it is your responsibility
to let me know after class that you were present. Otherwise, you will be counted
absent for the day.

Basis for Grade: Exams (4 @ 15%) 60%

Final Exam 20%
Homework 20%
100%

Homework: Problems are due at the beginning of class on the day assigned. Please put them on
the front desk as you come into class. There are 17 homework assignments during the
semester. I will drop your two lowest grades; each of the remaining 15 problems will count
1.33 % of your semester average. Problems will be graded for both effort and accuracy.

Unless otherwise indicated, homework problems are individual assignments. You may
discuss assignments with your classmates, but your submissions should reflect your own
efforts and understanding. Group assignments should reflect the efforts of all group
members. Submit only one copy of group assignments.

Students and Academic Integrity: Baylor University policies require that students act in
academic matters with the utmost honesty and integrity. It is your responsibility to be
familiar with the Honor Code and other university policies and procedures affecting
academic integrity. Penalties can result from dishonest conduct, ranging from a grade of
zero on the assignment to immediate expulsion from the university. For more information
see the Baylor University Honor Code on the Academic Integrity Web page or contact the
Office of Academic Integrity at 710-8882 or Academic_Integrity@baylor.edu.
 Date Sessio Topic Class Preparation After class
n
Jan. 11 1 Managerial accounting
An organization's value chain
Management's planning and control cycle
Jan. 13 2 Review of cost terminology and Skim HDFRI Chapters 1, 2, and 4. Read the Pecos Products case on Bb
classification Read problem 2-38 and the Three Dog and complete Pecos Products Case Set
and job costing Bakery problem. 1. Due at the beginning of session 3.

Jan. 18 3 Activity-Based Costing (ABC) Read HDFRI Chapter 5. Complete Pecos Products Case Set 2.
Activity-Based Management (ABM) Solve problem 5-38. Due at the beginning of session 4.
Jan. 20 4 Activity-Based Costing (ABC) Prepare to discuss the Pecos Products Complete Pecos Products Case Set 3.
Activity-Based Management (ABM) case. Due at the beginning of session 5.

Jan. 25 5 The master budget Read HDFRI Chapter 6 and Chapter 6 Solve problem 6-40 (Yummi-Lik) as a
Responsibility accounting Appendix, pp. 203 – 208. group. Create a linked Excel budget
Read problems 6-35 and 6-36. file. Due at the beginning of session 6.
Jan. 27 6 The master budget Prepare to discuss your completed Excel Prepare for Exam 1.
file for problem 6-40 (Yummi-Lik).

Feb. 1 Exam 1
Feb. 3 7 Flexible budgets and related variances Read HDFRI Chapters 7 and 8, pp. 260- Read the Boston Creamery case found
Performance measurement using 272. in the session 9 learning plan.
standards Read problem 7-18 and the Tredoc Co. Complete case set 1 (Bb) as a group.
problem. Due at the beginning of session 8.

Feb. 8 8 Sales variances Read HDFRI Chapter 14, pp. 515-523. Complete Boston Creamery case set 2
Read problems 14-32 and 14-33. (Bb) as a group. Due at the beginning
of session 9.
Feb. 10 9 Profit planning and control systems Prepare to discuss the Boston Creamery Solve problem 7-43 as a group. Due at
Using variance analysis to evaluate case in class. the beginning of session 10.
performance

Feb. 15 10 Absorption costing and variable costing Read HDFRI Chapter 9. Solve problem 9-39 as a group. Due at
The variable costing income statement Solve problem 9-18. the beginning of session 11.
The effects of sales and production on Read problem 9-28.
income
 Date Sessio Topic Class Preparation After class
n
Feb. 17 11 Cost-volume-profit analysis Read HDFRI Chapter 3. Prepare for Exam 2.
Solve problems 3-38 and 3-39.
Read problems 3-28 and 3-46.

Feb. 22 Exam 2
Feb. 24 12 Relevant costs and revenues for decision Read HDFRI Chapter 11. Solve problem 11-37. Due at the
making Solve problem 11-32. beginning of
Opportunity costs Read problem 11-30. session 13.
Make-or-buy decisions
Special-order decisions

Mar. 1 13 Product-mix decisions with constrained Solve problem 11-26. Read the Solve problem 11-42. Due at the
capacity Exotic Products Company problem beginning of session 14.
Keep-or-drop decisions and problems 11-34 and 11-41.

Mar. 3 14 The costs of quality Read HDFRI Chapter 19. Solve problem 19-39 as a group. Due
The theory of constraints Solve problems 19-17 and 19-18. at the beginning of session 15.
Read problems 19-25 and 19-26.

Mar. 8 Spring Break

Mar. 10 Spring Break

Mar. 15 15 Evaluation of quality improvements Solve problem 19-27. Solve problem 19-38. Due at the
Read problems 19-28 and 19-35. beginning of session 16.
Mar. 17 16 Pricing decisions Read HDFRI Chapter 12. Prepare for Exam 3.
Target costing Solve problem 12-32.
Life-cycle budgeting Read problem 12-29.
Mar. 22 Exam 3
Mar. 24 17 Capital budgeting Read HDFRI Chapter 21. Solve the Jonfran Company problem.
Read problem 21-32 and the City of Due at the beginning of session 18.
Los Angeles problem.

Mar. 29 18 Sensitivity analysis in capital budgeting Prepare to discuss the Jonfran Solve problem 21-30 as a group. Due
decisions Company case. at the beginning of session 19.
 Date Sessio Topic Class Preparation After class
n
Mar. 31 19 Performance evaluation of subunits Read HDFRI Chapter 23. Solve problem 23-37. Due at the
Financial measures of performance Solve problem 23-16. beginning of session 20.
Read problems 23-26 and 23-32.

Apr. 5 20 Management control systems Read HDFRI Chapter 22. Solve problem 22-36 as a group. Due
Decentralization Solve problem 22-27. at the beginning of session 21.
Read problems 22-28 and 22-29.
Transfer pricing
Apr. 7

Apr. 12
Apr. 14 Diadeloso

Apr. 19 21 Multinational transfer pricing Read exercises 22-23 and 22-24. Solve problem 22-33. Due at the
beginning of session 22.
Apr. 21 22 Nonfinancial measures of performance Read HDFRI Chapter 13, pp. 462- Prepare for Exam 4.
The balanced scorecard 474. Read the Drain-A-Gain case
found in the session 22 learning
plan.

Apr. 26 Exam 4
Apr. 28 Prepare for the Final Exam

May. 7 Final Exam 11:30 – 1:30