Unit Outline* ACCT8633 Accounting for Planning and Control Semester 1, 2011 Crawley Professor Vincent K Chong Business School www.business.uwa.edu.au * This Unit Outline should be read in conjunction with the Business School Unit Outline Supplement available on the Current Students web site http://www.business.uwa.edu.au/students
ACCT8633/Crawley/VC/14.02.11. All material reproduced herein has been copied in accordance with and pursuant to a statutory licence administered by Copyright Agency Limited (CAL), granted to the University of Western Australia pursuant to Part VB of the Copyright Act 1968 (Cth). Copying of this material by students, except for fair dealing purposes under the Copyright Act, is prohibited. For the purposes of this fair dealing exception, students should be aware that the rule allowing copying, for fair dealing purposes, of 10% of the work, or one chapter/article, applies to the original work from which the excerpt in this course material was taken, and not to the course material itself. The University of Western Australia 2011 2
UNIT DESCRIPTION Introduction Welcome to ACCT8633 Accounting for Planning and Control. The aim of this unit is to introduce the use of management accounting information for planning, control and decision making within business organizations. The major topics covered in this unit include cost terms and cost accumulation systems, tools for decision making such as cost profit-volume analysis, budgeting, variance analysis, performance evaluation, and compensation issues. Unit content This unit covers three principal areas. The first is cost accounting fundamentals. This section includes introduction to cost terms and cost accumulation systems. The second section is tools for planning and control. It includes master budget, flexible budgets, variances and management control, inventory costing and capacity analysis. The last section is cost information for decisions and advanced topics in management accounting. Topics in this section include cost-volume-profit analysis, decision-making and relevant information, strategic cost, time, quality and strategic pricing. The goal of the unit ACCT8633 has two goals. The first is to develop your ability to understand, interpret and use management accounting information for planning, control and decision-making. The second is to develop your awareness of the basis for preparation and the strategic use of management accounting information. Learning outcomes On completion of this unit, you should be able to: Explain the different types of cost terms and purposes; Employ various cost-accumulation systems including job-order costing and activitybased costing; Apply various planning and control techniques; Prepare the operating budget and its supporting schedules; Compute and interpret various variances including direct-cost and overhead-cost variances; Use various pricing approaches including cost-plus and target costing; Develop familiarity with the concepts of strategy and balanced scorecard. Educational principles and graduate attributes In this unit, you will be encouraged and facilitated to develop the ability and desire to: Critically evaluate and solve managerial accounting problems; Demonstrate an ability to work effectively in both independent and team situation; Think and reason logically and creatively; Undertake problem identification, analysis and solution. 3
TEACHING AND LEARNING RESPONSIBILITIES Teaching and learning strategies The seminars in this unit are interactive. Students are grouped into teams of 4 people for seminar activities and a team project. The primary objective of using teams is to encourage students to develop a life-long learning skill such as learning to learn via peer and self-teaching and learning. In each seminar session, students are encouraged to actively participation in seminar activities. The goal is to foster a learning environment where all students feel comfortable in asking questions where they require clarification about an issue or concept. Teaching and learning evaluation You may be asked to complete two evaluations during this unit. The Student Perception of Teaching (SPOT) and the Students Unit Reflective Feedback (SURF). The SPOT is optional and is an evaluation of the lecturer and the unit. The SURF is completed online and is a university wide survey and deals only with the unit. You will receive an email from the SURF office inviting you to complete the SURF when it is activated. We encourage you to complete the forms as your feedback is extremely important and can be used to make changes to the unit or lecturing style when appropriate. Attendance Participation in class, whether it be listening to a lecture or getting involved in other activities, is an important part of the learning process, therefore it is important that you attend classes. More formally, the University regulations state that to complete a course or unit students shall attend prescribed classes, lectures, seminars and tutorials. Where a student, due to exceptional circumstances, is unable to attend a scheduled class, they are required to obtain prior approval of the unit coordinator to be absent from that class. Any student absent from class without having had such absence approved by the unit coordinator may be referred to the faculty for advice and may be required to withdraw from the unit. CONTACT DETAILS We strongly advise students to regularly access their student email accounts. Important information regarding the unit is often communicated by email and will not be automatically forwarded to private email addresses. Unit coordinator/lecturer Name: Professor Vincent K Chong Email: Vincent.Chong@uwa.edu.au Phone: 08 6488 2914 Consultation hours: TBA Monday, 5:00pm-8:00pm Lecture times: Wednesday, 2:00pm-5:00pm Monday, BUSN: 242 Lecture venue: Wednesday, ZOO: LT TEXTBOOK(S) & RESOURCES Recommended/required text(s) Horngren, C. T., Datar, S. M., Foster, G., Rajan, M., and Ittner, C. (2008). Cost Accounting: A Managerial Emphasis, 13 th Edition, Prentice Hall, Upper Saddle River. 4
Horngren, C. T., Datar, S. M., Foster, G., Rajan, M., and Ittner, C. (2008). Student s Solutions Manual, Cost Accounting: A Managerial Emphasis, 13 th Edition, Prentice-Hall, Upper Saddle River. Additional seminar/lecture notes and other materials may be provided. UNIT SCHEDULE Week Date: Week Commencing Topics 1 28 February Introduction to the Unit HORNGREN, DATAR, FOSTER, RAJAN & ITTNER (2008) Reading Chapters 1 & 2 Self-Study Questions The Role of Accountants in the Organization; Cost Classifications & Purposes 2 7 March Cost-Volume-Profit Analysis 3 1-4; 1-8; 1-16; 1-20; 1-24. 2-6; 2-18; 2-20; 2-34. 3 14 March Overview of Job Costing System 4 3-16; 3-18; 3-20; 3-36. 4 21 March Job Costing System; Allocating Overhead to Jobs; Activity-Based Costing (ABC) 5 28 March Quiz#1 4 & 5 4-18; 4-20; 4-24; 4-26. 5-18; 5-26; 5-32; 5-36; 5-38. 6 4 April The Master Budget and Responsibility Accounting 7 11 April Flexible Budgets, Standard Costs and Variance Analysis: Direct-Cost Variances 8 18 April Mid-semester exam (Date and Venue to be advised) 25-29 April Non-teaching study break 9 2 May Flexible Budgets, Standard Costs and Variance Analysis: Overhead Cost Variances 10 9 May Inventory Costing: Variable and Absorption Costing 11 16 May Quiz#2 12 23 May The Use of Cost Information for Decision Making 13 30 May Pricing Decisions & Cost Management Strategy and Balance Scorecard 6 7 6-22; 6-26; 6-30; 6-32. 8 7-18; 7-20; 7-22; 7-30. 9 8-16; 8-20; 8-22. 11 9-16; 9-20; 9-22. 12 & 13 [pp. 462-473] 11-16; 11-22; 11-26; 12-16; 12-28; 12-32; 13-6; 13-8; 13-18; 13-22; 13-26; 13-34. ASSESSMENT MECHANISM The purpose of assessment There are a number of reasons for having assessable tasks as part of an academic program. The assessable tasks are designed to encourage you to explore and understand the subject 5
more fully. The fact that we grade your work provides you an indication of how much you have achieved. Providing feedback on your work also serves as part of the learning process. Assessment mechanism summary Item Weight Seminar Activities 10% Quizzes #1 & #2 20% Mid-semester exam 30% Final exam 40% Total 100% Note 1: Note 2: Results may be subject to scaling and standardisation under faculty policy and are not necessarily the sum of the component parts. Your assessed work may also be used for quality assurance purposes, such as to assess the level of achievement of learning outcomes as required for accreditation and audit purposes. The findings may be used to inform changes aimed at improving the quality of Business School programs. All material used for such processes will be treated as confidential, and the outcome will not affect your grade for the unit. Assessment components Seminar Activities (10%) Seminar activities consist of questions which will be discussed in each seminar session. These questions consist of multiple-choice types, problem-type questions and/or cases, and will be handed out only at the beginning of each seminar session. Students will be grouped into teams of 3 people for seminar activities. These teams will remain fixed for the semester. The aims of these seminar activities are to give you an opportunity to improve your understanding and technical competence and to develop your generic skills in the following areas: critical thinking, problem-solving, communication and interpersonal. The assessment of your seminar activities performance will be determined based on your active participation and contribution in seminar activities. In addition, self-study questions are assigned each week. These questions will not be discussed in each seminar session. Quiz#1 (10%) & Quiz#2 (10%) Quizzes #1 and #2 will comprise both theoretical and practical questions and are designed to assess your understanding of management accounting concepts and techniques. The materials cover in Quiz#1 will be drawn from the seminar topics covered in weeks 1 to 4; while the materials cover in Quiz#2 will be drawn from the seminar topics covered in weeks 7 to 9 inclusive. More details will be provided. Mid-semester examination (30%) The mid-semester examination will comprise both theoretical and practical questions. The materials cover in the mid-semester examination will be drawn from the seminar topics covered in weeks 1 to 6. It will be in week commencing 18 April 2011. More details will be provided. Please note that no seminars are scheduled in the week commencing 18 April 2011. 6
Final examination (40%) The final exam will comprise both theoretical and practical questions. The materials cover in the final examination will be drawn from the seminar topics covered in weeks 7 to 13. More details will be provided. Submission of assignments Seminar activities and quizzes will be submitted at the end of session Student Guild Phone: (+61 8) 6488 2295 Facsimile: (+61 8) 6488 1041 E-mail: enquiries@guild.uwa.edu.au Website: http://www.guild.uwa.edu.au Charter of Student Rights and Responsibilities The Charter of Student Rights and Responsibilities outlines the fundamental rights and responsibilities of students who undertake their education at UWA (refer http://handbooks.uwa.edu.au/undergraduate/poliproc/policies/studentrights). Appeals against academic assessment The University provides the opportunity for students to lodge an appeal against assessment results and/or progress status (refer http://www.secretariat.uwa.edu.au/home/policies/appeals). 7