Bangor University Transfer Abroad Undergraduate Programme Module Implementation Plan MODULE: ACF-231 Management Accounting LECTURER: Cynthia L.M. Fortin ACF-232 Control & Decision Accounting INTAKE: 2012 SEMESTER: 6 ACTIVITY TYPES: Lecture, presentation, quiz, exam, workshop Start Date: Apr 6, 2015 End Date: Apr 30, 2015 Year Semester Academic weeks Module Code Module Name Credits Lecture hrs/week Tutorial Hrs/week Weeks III 2015 Spring Week 9~12 2015/04/07 2015/04/30 ACF-231 Management Accounting 10 ACF-232 Control & Decision Accounting 10 Mon-Fri 0830-1130 Mon-Fri 1430-1530 4 Course Detail: This module teaches students to apply judgment and techniques in the analysis of relevant data to provide management with information required to contribute to strategic planning, control, and decision making situations. Students will require a good understanding of management accounting, and will be required to apply the principles and techniques covered in financial accounting. Understanding is assumed of how to interpret accounting information. On completion of this module, the student should be able to understand the nature and purpose of management accounting, understand how to design a system and approach to management accounting to meet corporate objectives, identify information suitable for decision making, forecast and analyze full financial statements (Income, Balance Sheet and Cash Flow) including operational metrics, control and performance measurement in a variety of business situations, use management accounting systems in pricing and other decisions, and assess corporate performance based on information in financial reports.
Assessment Assessment Types Date Value Class Participation Daily quiz on short videos 10% ACF231 Assessment April 17 30% Team Assignment Presentations Apr 26 20% ACF 232 Assessment Apr 30 40% Week Activity Type Scheduled Contact Hours Activity Details Core Reading + Additional Reading Learning outcomes Student preparation for tutorial Student preparation for next day s class Week 01 Apr 7 Lecture 3 hr Day 1 Lecture Management accounting framework Tutorial 1 hr Team assignment details Planned questions 1,3,4,7,9,14, and 15 Overview financial statements. Prologue, Discuss: Scope of managerial accounting Managers skills to succeed Role of ethics and corporate social responsibility. Prepare discussion to planned questions. Brush up on financial statement content. Read slides chapter 12. Apr 8 Lecture 3 hr Day 2 Lecture Statement of cash flows, indirect method Concepts, examples, and interpretation. Tutorial 1 hr Team assignment: students identify team members, decide which company, and provide website url. Each team meets lecturer to discuss choice and process. Planned problems 12-1 to 12-4 and 8A. Chapter 12, Understand the effect on cash of changes in balance sheet accounts. Reconcile where cash went from amounts in balance sheet and income statement accounts. Classify changes in acceptable categories. Determine net cash change. Prepare report: Cash flow statement. Explain reasons of increase or decline in cash balance. planned problems. Refresh knowledge of Financial statement content. Read slides chapter 13. Thursday Apr 9 Lecture 3 hr Day 3 Lecture Financial statement analysis SWOT Analysis Industry comparison Vertical and horizontal analysis Chapter 13, Work with several sources of information. Read and interpret financial statements. Understand the meaning of ratio analysis. Compute ratios useful for stockholders, short-term, and long-term creditors. Prepare comprehensive reports. Tutorial 1 hr Foundational I5 Planned questions: 13-3 to 9 Planned exercises: 13-1,,210 Planned problems: 11A, 12A. Read slides chapter 1. Managerial Accounting Today - Pizza Hut.
Friday Apr 10 Lecture 3 hr Day 4 Lecture Managerial accounting and cost concepts Cost terminology Identify which costs apply to which purposes Planned exercises: 1-1,2,3,5,6, 12 Planned problem: 1-15A, 16A, 21A. Chapter 1, Develop ways of looking at costs. Predict how costs behave: fix, variable, direct, and indirect. Understand concept of relevant range. Estimate, compute costs, and interpret graphs. Evaluate effect of volume changes. Prepare traditional income statement and contribution income statement Review problems chapters 12, 13 and 1. Read slides chapter 2. Job costing - Making a movie. Week 02 Apr 13 Lecture 3 hr Day 6 Lecture Job-order costing system Accumulate labor and materials costs Allocate overhead to jobs Illustrate flow of costs manufacturing and accounting. Planned exercises2-1, 2,3,6,7,8,12. Chapter 2, Understand what to include in overhead and how to allocate to product cost. Compute total cost and average cost per unit of a job. Record transactions. Understand effect of overhead drivers. Prepare schedule of cost of goods manufactured and sold. Prepare absorption costing income statement. Read slides chapter 3. Precor Activity-based costing Apr 14 Lecture 3 hr Day 7 Lecture Activity-based costing Compare to traditional costing Classify activity drivers Comment, evaluate and promote relevant activity measures. Planned exercises 3-10 Planned problems 3-12A, 3-17A. Chapter 3, Brewer Understand how and where to assign overhead cost more accurately. Calculate overhead rate per activity and allocate. Compute total cost and average cost per unit. Compare to traditional costing. Evaluate changes in profitability decisions. Read slides chapter 4. Process costing - Jones Soda. Apr 15 Lecture 3 hr Day 8 Lecture Process costing system Compare to job-order costing system Allocate overhead to process. Planned exercises 4-2, 3, 7, 9. Planned problems 4-13A. Chapter 4, Brewer Illustrate flow of costs and record transactions. Evaluate changes in work in process accounts and balances. Prepare cost reconciliation report. Read slides chapter 5. Cost Volume Profit: Southwest Airlines Whole Foods.
Thursday Apr 16 Lecture 3 hr Day 9 Lecture Cost Volume Profit analysis Contribution margin approach Break-even point and target profit, costing and pricing What if scenarios Planned exercises 5-5, 5-3 Planned problem: Mix of job-order and C-V-P Chapter 5, Understand how costs respond to business activity. Compute effects of changes on net operating income. Estimate break-even point in units. Interpret cost-volume-profit graphs. Determine sales needed to achieve a desired profit. Prepare contribution format income statements. Evaluate profitability alternatives Recommend alternative solutions Read slides chapter 6 Pricing case Zappos. Friday Apr 17 ACF 231 Assessment 2 hr 2 hr Review Chapters 12, 13, 1, 2, 3, 4, and 5. ACF 231 Assessment Read slides chapter 6 Week 03 Apr 20 Lecture 3 hr Day 11 Lecture Variable costing and segment reporting Compare to absorption costing Evaluate effect of overhead deferred to inventory Chapter 6, Prepare and compare income statements: variable versus absorption costing. Prepare contribution format segmented income statements. Evaluate profit impact of decisions by reconciling costing methods. Apr 21 Planned exercises 6-14 Planned problems 6-17A, 6-18A, 6-21A, 22A Lecture 3 hr Day 12 Lecture Master budget and profit planning Purpose of preparing budgets Overview each part of the master budget including cash, income statement, and balance sheet. Planned exercises 7-1 to 7-13 Planned problems 7-19A Chapter 7 Prepare budgets for sales, production, direct materials, direct labor, and overhead, sales and administrative, along with budgeted financial statements. Read slides chapter 7. Budgetary planning Babycakes. Read slides chapter 8. Standard costing Starbucks. Apr 22 Lecture 3 hr Day 13 Lecture Flexible budgets, standard costs, variance analysis Use of standard costs Management control systems, performance measures, and management behavior. Tutorial 1hr F I5, Planned exercises 8-1 to 8-15 Planned problems 8-18A, 8-20A, 8-23A Chapter 8 Prepare flexible budgets. Prepare variance reports: revenues, spending, quantity, price, labor efficiency, and rate variances. Explain possible causes for effectiveness and efficiency variances. Read slides chapter 9. Listen to assigned videos: Tribeca Grand Hotel Budgetary Control and Responsibility Accounting. Balanced scorecard - Southwest Airlines.
Thursday Apr 23 Friday Apr 24 Week 04 Sunday Apri 26 (to replace May 01) Lecture 3 hr Day 14 Lecture Performance measurement in decentralized organizations Return on investment Residual income measures Management motivation Balanced scorecard. Planned exercises 9-1 to 9-13 Planned problems 9-14A to 9-16A Chapter 9 Understand ROI and residual income. Strengths and weaknesses of both measures. Compute cycle time, throughput time, and manufacturing cycle efficiency. Construct and understand use of balanced scorecards to recognize the importance of non financial measures 4 hr Catch up if necessary Read slides chapter 10. Incremental Analysis: Method. 5 hr Team assignment class presentations. Apr 27 Lecture 3 hr Day 17 Lecture Differential analysis: key to decision making. Planned exercises 10-1 to 10-17 Planned problems 10-18A, 19A and 21A Chapter 10 Decisions: Make or buy Special orders Constrained resource Joint products sell or process further Read slides chapter 11. Planning for Capital Investments - Holland American Cruises. Apr 28 Lecture 3 hr Day 18 Lecture Capital budgeting decisions Management techniques. Planned exercises 11-1 to 11-9 Planned problems 11-10A to 13A Chapter 11 Time value of money, net present value Total-cost approach Incremental-cost approach Ranking projects Internal rate of return Payback method Post audit of projects Prepare review chapters 6 to 11. Apr 29 Lecture 3 hr Review chapters 6 to 11 Tutorial 1 hr Review chapters 6 to 11 Thursday Apr 30 ACF 232 Assessment