Diploma in Accounting Program BUSI 294: Cost Accounting, Section 202

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1 COURSE INFORMATION Term/Period: 2016 Winter, Term 2 Instructor: Course Schedule: David K. Chan BComm., MBA, CA david.chan@sauder.ubc.ca Monday, 6.30 pm pm Course Duration: January 3 rd April 28 th, 2017 Office Hours: Pre-Requisite: TBA Pre-requisites: BUSI 293 (may be taken concurrently). Prior to taking BUSI 294, students are expected to have acquired a basic understanding of financial statements (the income statement and balance sheet), particularly inventory transactions The course is heavily quantitative. Consequently, you should have a basic understanding of quantitative methods. A self-study refresher module on basic math skills is available. Please contact the DAP office for more information. Additionally, students are expected to have, or acquire, a basic level of proficiency in Excel. COURSE DESCRIPTION This course provides an introduction to the basic principles and techniques of managerial accounting, where the major intent is to provide information to internal decision-makers to maximize an organization s operating efficiency and profitability. The course includes an introduction to alternative costing and reporting systems for service and manufacturing organizations, budgeting, variance analyses, performance evaluation, total quality management, and transfer pricing, plus analytical techniques including cost-volume-profit analysis and relevant costing and benefits. COURSE OBJECTIVES One goal of introductory management accounting is to simply introduce you to the role that management accounting information plays in the business environment. A second goal is to give you an understanding of various analytical techniques that support decision making in organizations. A third goal is to provide you with the opportunity to expand your pervasive skills in order to improve your decision-making and communication skills. BUSI 294 Introductory Management Accounting January - April, 2017

2 LEARNING OUTCOMES Upon the completion of BUSI 294, students will be able to: 1. Explain how management accounting data are essential to the process of rational operating and strategic decision making 2. Apply cost information to produce a GAAP-compliant income statement 3. Explain the elements involved in an inventory costing system. 4. Calculate unit manufacturing costs using either a job costing or a process costing inventory system. 5. Apply the cost hierarchy to develop an activity-based costing system and assign costs using the ABC system 6. Understand the various methods of cost estimation and use historical data to predict future costs 7. Understand and apply the concepts of cost-volume-profit relationships. 8. Prepare a master operating budget and a cash budget 9. Understand standard costs and be able to perform variance analysis. 10. Understand standard costs and be able to perform variance analysis. 11. Calculate and interpret revenue variances 12. Analyze the various methods of allocating joint costs 13. Determine whether it is appropriate to sell a product at split-off or process further COURSE MATERIALS & REQUIREMENTS Textbook: BUSI 294 Custom Publication excerpted from: Cost Accounting: A Managerial Emphasis Horngren et al, 2015 Pearson Custom Business Resources ISBN # Other materials may be posted on the Connect course website throughout the term. Technology Requirements: Computer with internet access, Microsoft Excel and Word, Adobe Reader,an account, and a UBC CWL (Campus Wide Login). Abusiness calculator that can perform discounted cash flow calculations (Net Present Value (NPV) and Internal Rate of Return (IRR)). BUSI 294 Introductory Management Accounting January - April, 2017

3 Campus-Wide Login All students at UBC are required to sign-up for a Campus-Wide Login (CWL), which can be used to access a number of services at UBC such as the SSC, Connect and UBC E- mail. Information about CWL can be found at: Connect We will be using Connect learning management system for BUSI 294. The course page will be accessible starting January 3rd. How to Access the Course Connect Site Follow these steps to login to your Connect BUSI 294 online course: Go to Login to Your Courses In the blue box (labelled Login to ), enter your Login ID and password, then click on the Login button: Login ID: Your CWL (Campus Wide Login). Password: Your CWL password Click on the course name (BUSI 294) Connect Technical Support If you experience any technical difficulties with your login, please contact the Student Connect Help Desk by help@itservices.ubc.ca or by phone: Other Information Videos are available for each module covered in this course. The videos will be accessible through theconnect site throughout the term. There are typically two videos available for each module covered in the course. One video covers the concepts to be discussed in the module, while the other video shows detailed solutions for one or two related problems from the text. ASSESSMENT SUMMARY Pre-class quizzes 5% Assignments 10% Midterm examination 40 or 45%% Final examination 40 or 45%% Total 100% BUSI 294 Introductory Management Accounting January - April, 2017

4 POLICIES AND PROCEDURES Completion of the assignments is essential for your understanding of the course material. These assignments are a good indication of the type of problems you will encounter on the midterm and final exams. I encourage you to master the problems on your own. You may work in small study groups, but the work you submit must be your own. UBC places a high value on academic integrity and is a core value of the DAP diploma. Submitting someone else s work as your own constitutes plagiarism and is a form of academic misconduct. The UBC calendar sets out the policies on academic honesty and what constitutes academic misconduct. For more information please refer to the UBC calendar: COURSE SCHEDULE Date (Week of) CLASS TOPICS CH Monday Jan 2 nd Module 1 January 9 th No class Stat holiday UBC closed The Accountant s Role in Decision Making Cost Terms & Purposes Module 2 January 13 th Job Costing* (make up class for Jan 2 nd ) 3 Module 3 January 16 th Process Costing 5 Module 3 (continued) January 23rd Spoilage, Rework, and Scrap 6 Module 4 January 30 th Activity-Based Costing & Management 4 Module 5 February 6 th Analysis of Cost Behaviour 7 Feb 13 th February 17 th midterm Feb 20 25th No class Stat Holiday Mid-Term Exam (6:30 to 9:30 pm) Location TBA Reading Break Module 6 February 27 th Cost-Volume-Profit Analysis 8 Module 7 March 6 th Budgeting Module 8 March 13 th Flexible Budgets, Variances & Management Control Part 1 10 BUSI 294 Introductory Management Accounting January - April, 2017

5 Date (Week of) CLASS TOPICS CH Module 9 March 20 th Flexible Budgets, Variances & Management Control Part 2 11 Module 10 th Revenue & Customer Profitability Analysis 12 March 27 April 3 rd Final exam period Review April 10 th 28 th exam schedule will be posted in February Students will be given adequate notice of any changes to this outline. Assignments will be posted on the Connect course website at least one week prior to the assigned due date. BUSI 294 Introductory Management Accounting January - April, 2017