ACCOUNTING 329, Cost Management & Analysis
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1 ACCT 329 SPRING 2014 Sec 501: THURSDAY 5:30 to 6:45, WCBA 114 INSTRUCTOR Karen Congo Farmer, CPA, CA (Canada) Office: Wehner 460M HELP DESK: Lauren Pellino Teaching Assistant Note: This class meets only once per week. Office hours: 460 M Thursday: 3pm to 5:00pm is the best way to reach me. I also Skype with students and make telephone appointments as needed. Office hours: 460 M Tues/Thurs: 11am to 3pm TEXT: ACCT 329 Special Edition for Texas A&M University, Lanen et.al., 2014, McGraw-Hill Education. This is a loose-leaf collection of chapters from two separate textbooks and has been customized, at my initiation, to reduce the cost to students. The bookstore package also comes with a unique access code to the textbook company s website, Connect to find the e-book online. The e-book is the only item I will be implementing from that website, and it s your choice if you use it or not. E-learning: This is the official website for the course, and you should access it right away. The syllabus, class notes, solutions to problems and class discussion forums will be available at: elearning.tamu.edu. Before you enter your Net ID, you will need to ensure your computer has the correct settings to enable pop-ups and java script, so be sure to complete the guided tutorial called Vista Browser Check first. Otherwise you will suffer constant frustration. Once complete, enter your Net ID, then select the course called: 13 SPRING ACCT : Cost Mgmt and Analysis. COURSE DESCRIPTION This course will examine the internal production and use of accounting information in planning, controlling, and decision-making. It is divided roughly into three parts: (1) The basics of cost accounting, (2) budgeting and using budgets and budget variances for control and evaluation, (3) Using accounting numbers for decision-making. PREREQUISITES Accounting 230 and 327 or 315 (Grade of C or better). It is your responsibility to ensure you have met these criteria or you could complete ACCT 329 and have your grade denied. COURSE OBJECTIVES The objectives of this course are to increase students knowledge and understanding of the concepts of cost and managerial accounting while enhancing analytical and problem-solving skills. The class format includes lectures, and a prominent focus on class discussion. It is difficult, perhaps impossible, to understand business without understanding costs and the difference between cost behavior and reported costs, so while it may not be obvious to you now, this may be the most practical course that you take in your undergraduate accounting program. TEXT PROBLEMS The course calendar shows suggested textbook problems for students to work. These problems are for your benefit; they will not be graded. You are expected to work these problems as needed to ensure mastery of course topics. Solutions are available to these problems on the E-learning website. Page 1
2 TESTS AND EXAMINATIONS Test and Exams will be based on the material in the textbook, class discussions, and lectures and will be in multiple-choice format. Each of the 2 in-class tests will cover new material only, but the final exam will be cumulative. Make-up exams will be given only to students with a university-approved excuse or who have made arrangements in advance with the instructor. Please contact me on the day of your missed test at the very latest; this is your responsibility. GRADING 3 Quizzes at 3.33% each** 10% The following points will get you the letter grade: 2 Regular Tests (75 min, in class) 20% each 40% > 89.5% A 3 Assignments (10%, 5%, 5%) 20% 79.5% to 89.4% B Final Exam (cumulative) 20% 69.6% to 79.4% C Participation 10% 59.5% to 69.4% D Final Grade 100% <59.5% F **There will be 4 quizzes in total, but we include your grades on only the best 3. As a result there will be no provision for taking a make-up quiz under any circumstances. Please note: I grade fairly and am a very reasonable person. However, you are strongly advised against requesting a grade adjustment or suggesting that you d really appreciate an A in the course. An A will be given for excellent performance on graded work and class participation, and for no other reason. You may always ask for assistance. COURSE POLICIES Academic Dishonesty: AN AGGIE DOES NOT LIE, CHEAT, OR STEAL, OR TOLERATE THOSE WHO DO. Academic dishonesty includes, but is not limited to, copying, sharing, or obtaining information from an unauthorized source on assignments, quizzes, and examinations, attempting to take credit for the intellectual work of another person, falsifying information, and giving or receiving information about a test, quiz, or assignment to students in another section of the course. Upon accepting admission to Texas A&M University, a student immediately assumes a commitment to uphold the Honor Code, to accept responsibility for learning and to follow the philosophy and rules of the Honor System. Ignorance of the rules does not exclude any member of the Texas A&M University community from the requirements or the processes of the Honor system. For additional information please visit: IMPORTANT DATES: January 17 Last Day to drop a Spring Semester Course. March Spring Break!! April 14 Last Day to Q-Drop. April 29 Last Day of Spring Semester. Redefined Friday. May 2 Alternate (Early) ACCT 329 Final Exam. 6pm to 8pm rm 161. May 7 Regularly Scheduled ACCT 329 Final Exam 3:30pm to 5:30pm rm 114. ATTENDANCE AND CLASS PARTICIPATION Attendance itself does not constitute participation and will not result in a participation grade. Participation can mean any of 1) participating during class discussions, 2) and/or in online forums 3) and/or attending our informal Roundtable Discussions 4) and/or by creating practice multiple choice questions for submission to us in advance of Tests/Exams 5) and/or by taking the important Critical-Thinking Assessment Testing. (See below for more details.) To make worthwhile contributions in class and/or in the online discussion boards, you will need to prepare in advance. If you tend to dominate class discussions, please disable this tendency in my class. You have the ability to score a perfect 10 out of 10 on your participation points. That means that you need to be present Page 2
3 every day and make valuable contributions to our in-class and/or online discussions, and generally contribute in a positive manner to our learning environment. Hostile/demeaning comments to other classmates or to the instructor will not be tolerated. If you sense you are having difficulties with your participation grade then see me as soon as you notice it. Coming to me in the final week of the semester will not help; you must be pro-active. There is no provision for assignments for extra-credit in this course; you have the entire semester to earn participation points, so please be self-aware. I can make suggestions on making in-class participation easier, if you re interested. 1) Posting on E-learning Discussion Forums To increase engagement, and to recognize that we learn from each other, I have created a series of discussion forums for your use on e-learning. There are forums for each chapter where you can post content-related questions. To elicit your comments, I also have a series of Thought-Provoking Questions that are purposely open-ended in nature to capture the most comments possible. Posting counts towards your participation grade. 2) Submitting Multiple Choice Questions As an additional method of earning participation points, you are invited to submit your own self-authored practice multiple-choice questions to be complied with other questions to form a practice multiple choice test that will be made available in advance of each in-class Test/Exam. Please see the attached handout for more information and the requirements for earning participation points for submitting your questions. 3) Critical-Thinking Assessment Testing Critical thinking and problem solving skills are an important part of students' undergraduate core competencies. As part of Mays accreditation process, our department needs to administer a critical-thinking assessment test and I was approached by Dr. Michelle Chandler Diaz about using ACCT 329 for such testing. We have a unique opportunity to participate in a university-wide project to provide evidence of student critical thinking abilities. The CAT Instrument, designed at Tennessee Technological University (TTU) and funded primarily by the National Science Foundation (NSF), was used in our CAT Project Pilot at Texas A&M University from 2008 through 2013 and will continue to be implemented this year. Four important components are designed to measure critical thinking skills. They include: 1) Evaluating information 3) Evaluating ideas and other points of view 2) Learning and Problem-solving 4) Communication This testing will be administered by Dr. Michelle Chandler Diaz, and will take place in class on Thursday March 6 th. Treat this testing as if it were an in-class test for the course; this is important to the department and to Mays, and we need your participation. You will earn 2/10 participation points for your efforts. 4) Roundtable Discussions I have created an opportunity to meet with you in a smaller group setting. There will be a signup sheet in class for you to choose dates/times to attend. The conference rooms I use will generally accommodate around 7 students plus myself. We chat about all sorts of topics, with the only agenda being to get to know each other better. Past students have reported that they really enjoyed these sessions, while providing me with great course suggestions! STUDENTS WITH DISABILITIES The Americans with Disabilities Act is a federal anti-discrimination statute that provides civil rights protection for persons with disabilities. This legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of disabilities. If you feel you are entitled to special accommodations due to a disability, please contact Disability Services, Cain Hall Room B118 or EATING - DRINKING Food, beverages, tobacco products and animals are NOT allowed in Mays classrooms. Page 3
4 COURSE CALENDAR: The following schedule is tentative, but test dates (shown in bold) are fairly firm. Date Reading Topic Suggested Text Problems Thurs Jan 16 Chapter 1 Cost Accounting: Info for 1-3, 1-10, 1-12, 1-18, 1-21, 1-23, 1-24, 1- Decision Making, Course Intro 27, 1-34, 1-41 Thurs Jan 23 Chapter 2 Cost Concepts and Behavior 2-1, 2-2, 2-9, 2-13, 2-14, 2-24, 2-25, 2-28, 2-31, 2-38, 2-41, 2-46, 2-50, 2-53, 2-60 Thurs Jan 30 Chapter 7 Job Costing 7-6, 7-8, 7-9, 7-14, 7-15, 7-20, 7-23, 7-24, 7-36, 7-38, 7-39, 7-41, 7-54 Thurs Feb 6 Chapter 13 Budgeting Reality Check DO NOT MISS THIS! Thurs Feb 13 Chapter 13 Planning and Budgeting 13-1, 13-2, 13-14, 13-15, 13-19, 13-20, 13-22, 13-24, 13-25, 13-26, 13-29, 13-31,13-42, 13-43, 13-44, 13-47, 13-49, Friday Feb 14 Budget Assignment Due: 12 Noon to box in Wehner 460. This is your personal budgeting assignment worth 10% of your final grade. Thurs Feb 20 TEST 1: Covers chapters 1, 2, 7, 13 Thurs Feb 27 Thurs Mar 6 Thurs Mar 6 Appendix (Omit Excel Tutorial) SELF STUDY CH 14 Capital Investment Decisions Self Study: Business Unit Performance Measurement (OMIT EVA) A-3, A-4, A-5, A-8, A-10, A-13, A-14, A- 15. Also see the supplementary problems to be posted on e-learning. 14-4, 14-5, 14-7, 14-8, 14-22, 14-23, 14-25, 14-26, 14-27, Special Critical Thinking Assessment Test see syllabus for more commentary. SPRING BREAK!!! Thurs Mar 20 Chapter 3 Cost-Volume-Profit Analysis 3-3, 3-5, 3-6, 3-7, 3-10, 3-12, 3-14, 3-16, 3-19, 3-20, 3-22, 3-23, 3-25, 3-26, 3-31, 3-32, 3-46, 3-52 Friday Mar 21 Assignment 2 Due: 12 Noon to box in Wehner 460. This assignment is a series of work-out problems and is worth 5% of your final grade. Thurs Mar 27 Chapter 4 4-1, 4-4, 4-5, 4-8, 4-9, 4-10, 4-11, 4-12, 4- Cost Analysis for Decision 13, 4-19, 4-24, 4-25, 4-28, 4-30, 4-31, 4-32, Making 4-33, 4-37, 4-41, 4-45, 4-46, 4-55, 4-57 Thurs Apr 3 TEST 2: Covers chapters Appendix, 14, 3, 4, 15 Thurs Apr 10 Chapter 15 (Omit pg ) Target Costing and Cost Analysis for Pricing Decisions Thurs Apr 17 Chapter 12 Management Control Systems Friday April 18 Thurs Apr 24 Friday May 2 Wednesday May , 15-13, 15-17, 15-22, 15-39, 15-40, 15-41, 15-45, Also Chapter 4-38, , 12-5, 12-7, 12-9, 12-10, 12-14, 12-15, 12-18, 12-21, 12-22, Assignment 3 Due: 12 Noon to box in Wehner 460. This assignment is a series of work-out problems and is worth 5% of your final grade. *15-1, 15-9, 15-10, 15-17, 15-18, 15-21, 15-25, 15-35, 15-36* Chapter 15* (Up to pg 579) *Transfer Pricing (*Note that there are 2 separate chapter 15s in your custom text.*) Final Exam: Friday May 2, 6pm to 8pm Room 161. Final Exam: Wednesday May 7, 3:30 to 5:30pm, Room 114. Page 4
5 SUBMITTING PRACTICE MULTIPLE CHOICE QUESTIONS FOR PARTICIPATION: GUIDLINES Before each Test/Exam, you will have the opportunity to submit one multiple-choice question that will be used in an online practice test to help you prepare for the exams. Each question that is submitted according to the guidelines detailed in this document will earn you one participation point. Note that if you submit a practice question for each Test and Exam according to the guidelines detailed below, you can earn 3 of the 10 points for participation! Please follow these instructions to earn the participation points: 1) All MC participation questions should be submitted concerning the material on the upcoming quiz/exam by the following dates: for Test 1, submit your question by Wednesday February 12; for Test 2 submit your question by Wednesday March 26; for the Final Exam submit your question by Wednesday April 23. Please refer to your syllabus to determine which chapters will be covered on which tests so that you submit questions on the relevant material. 2) All questions should be submitted via no later than noon (12:00pm) on the dates listed above. Submit questions to the following address: lpellino@tamu.edu. Lauren will be compiling the questions, so please send them directly to her. Any test questions received after 12:00pm on the dates listed above will not be accepted for participation credit. 3) The subject line of your and the attached document that you submit should have the following title to receive credit: Your Name: Test X MC Question. As you would expect, this will make compiling them much easier for Lauren. (You wouldn't want her to miss your MC question, right?) 4) All questions should contain four answer choices, be well thought out (not merely vocabulary definitions), show all calculations and explanations to arrive at the correct answer, and have the correct answer choice highlighted. 5) If your question is too simple, it will not receive credit. The practice test will only be as good as the sample questions you submit so challenge yourself to create a challenging question. Questions with spelling errors, typos and/or grammar errors will not receive credit. Questions that are merely spin-offs of examples shown in class with different numbers and/or company names inserted will not receive credit. The questions must include original content to earn one participation point. If you have any questions concerning the MC questions, please stop by during Lauren s office hours or send her or myself an . ***See below for an example MC Question that would receive credit*** (although it is a much longer question than necessary.) Page 5
6 SAMPLE PRACTICE MULTIPLE CHOICE QUESTION: In 2012, ABC Corp. incurred the following costs while manufacturing its widgets: Labor cost on factory workers $59,000 Sales commissions $19,000 Factory supplies used $14,000 Salaries paid to sales people $30,500 Materials used on widgets $51,000 Advertising expense $25,500 Depreciation on plant $33,000 Delivery expense $12,500 Finished goods inventory was $35,000 at January 1, 2012 and $30,000 on December 31, Work-in-process inventory was $8,000 at January 1, 2012 and $10,000 on December 31, Compute cost of goods manufactured and cost of goods sold for A) COGM = $155,000; COGS = $160,000 B) COGM = $185,500; COGS = $195,500 C) COGM = $160,000; COGS = 155,000 D) COGM = $125,000; COGS = 130,000 Answer: A. (a) Compute cost of goods manufactured for WIP (January 1) $8,000 +Manufacturing costs Direct Materials $51,000 Direct Labor $59,000 Dep. on plant $33,000 Factory supplies $14,000 Total manufacturing costs $157,000 Subtotal $165,000 Less: WIP (December 31) ($10,000) Cost of Goods Manufactured in 2012 $155,000 (b) Compute cost of goods sold for Beginning FG inventory (Jan. 1) $35,000 + COGM (from above) $155,000 Less: Ending FG inventory (Dec. 31) ($30,000) COGS in 2012 $160,000 Please note that this question not only includes 4 answer choices, and the correct answer choice is highlighted, but the answer is also supported by detailed calculations, logic and appropriate headings. Page 6
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