ACCOUNTING 202
INTRODUCTION TO MANAGERIAL ACCOUNTING

EASTERN KENTUCKY UNIVERSITY
COLLEGE OF BUSINESS & TECHNOLOGY
DEPARTMENT OF ACCOUNTING, FINANCE, & INFORMATION SYSTEMS

SUMMER
 2003;  May 12 – June 6

 Course:           ACC 202  KTLN     Time:  8:00 a.m. – 10:45 p.m.  M,T,Th,F     
Room:              UNIV 138, COR, MAN, DAN
Instructor:
        Dr. Edmund Fenton, CPA
Office:
              Miller 201
Phone:
             (859) 622-1119
Office Hours:
   10:45 – 11:45 a.m. M,T,Th,F; other times to be announced
Home Page:     
http://www.accounting.eku.edu/FentonE/
E-Mail:
              Ed.Fenton@eku.edu 

Prerequisite: Sophomore standing and successful completion of Accounting 201

 Accounting Majors: Please note that accounting majors should be taking ACC 250 along with this course since it is also a prerequisite for most future accounting courses.

 Text:   Managerial Accounting, 10th Edition by Garrison and Noreen, McGraw-Hill/Irwin (2003).

 Internet Access:  Internet access is a requirement for this course.  The study of some course material and the taking of chapter quizzes and possibly exams will be performed via the internet.  Students must obtain and use an e-mail account on a daily basis.  Also, there are many resources available online for the text.

 Blackboard:  Students must use the Blackboard system.  Class announcements, assignments, changes to the syllabus, and online quizzes and/or tests will be posted on Blackboard.  Blackboard should be checked on a daily basis for updates.  To learn about using Blackboard go to this link:  http://learn.eku.edu/?bbatt=Y.   Other information about using Blackboard can be found at this link: Blackboard instructions.

 Submitting Work Online:  The option may be given to submit papers and projects online.  When this is done, please send the file as an attachment and use the following format to name your file:  yourlastname_assignmenttitle.doc [e.g., smith_article1.doc].  

Course Objectives:                          
 
The primary objective of this course is to provide a study of the objectives, preparation and uses of managerial accounting information primarily from a user perspective.  Acknowledging the greater need for a user perspective, the authors of your text have explained:

" . . . the emphasis of Managerial Accounting is on uses of accounting data within an organization by its managers.  Managers need information to carry out three essential functions in an organization:  (1) planning operations, (2) controlling activities, and (3) making decisions.  The purpose of (this course) is to show what kind of information is needed, where this information can be obtained, and how this information can be used by managers as they carry out their planning, controlling, and decision making responsibilities."

Specific objectives include providing students with an:

1.         understanding of costs, cost behavior, cash flow, and relevant costs;

2.         understanding of systems designs for tracking costs;

3.         understanding of the budgeting process and the reports that accompany that process, as well as other reports necessary for managerial decisions; and

4.         awareness of the ethical problems encountered in a managerial accounting setting.

 Examinations:
Four 100-point examinations will be given during the term.  Students are expected to take each exam at the scheduled time, but if you have a university excuse or an emergency occurs, you must contact me as soon as possible.  Written verification of the reason for missing the exam is required before the make-up exam will be allowed.  BE PREPARED TO PRESENT IT; I will need a copy for my records.

Additional Work:
There will be announced, unannounced, and online quizzes throughout the semester, usually around 5 or 10 points each.  Students can earn a total of 60 points for quizzes.  Make-up quizzes will be allowed only at the discretion of the instructor and a written statement of the reason for the absence must be submitted.

You will also be asked to submit a written business plan worth 50 points.  This project should be double-spaced and computer generated or typed, and it will be graded on content as well as the criteria for good business writing - coherence, clarity and conciseness.  The project requirements are described below.  The project is due at the beginning of the class period shown in the schedule.  If the project is ten minutes late, ten points will be deducted from the grade.  If the project is one day late, 25 points will be deducted, and if the project is 2 or more days late, no points will be given.

Attendance:  The attendance policy for this class is: a student with six or more unexcused absences will be assigned a failing grade for the course.  This policy will be observed.

Retaining Student Work:  The professor reserves the right to retain for pedagogical reasons either the original, or a copy of any student's test, written assignment, paper, video, or similar work submitted by the student, either individually or as a group project, for this class.  Students' names will be deleted from any retained items used.

Disabled and Vietnam Era Veterans Statement: It is the policy of the University that there shall be no discrimination in employment (including recruitment, hiring, promotion, compensation and any other condition, or privilege of employment) on the basis of disabled or Vietnam era veteran status (as defined in 38 USC Sec. 4211 and 41 CFR qualified. This policy is intended to be in compliance with the University’s obligation as a federal contractor under the Vietnam Era Veteran’s Readjustment Assistance Act, specifically 38 USC Sec. 4212, and its implementing regulations, 41 CFR 60-250. Any complaint arising by reason of alleged discrimination shall be directed in writing to: Equal Opportunity Office, Eastern Kentucky University, Jones Building, Room 409, Coates, CPO 37A, Richmond, KY 40475-3102. (859) 622-8020.

 Disability Statement:  If you are registered with the Office of Services for Individuals with Disabilities, please make an appointment with the course instructor to discuss any academic accommodations you need. If you need academic accommodations and are not registered with the Office of Services for Individuals with Disabilities, please contact the Office directly either in person on the first floor of the Turley House or by telephone at (859) 622-1500 V/TTY. Upon individual request, this syllabus can be made available in alternative forms.

 University Repeat Policy:  In addition, you should be familiar with the university repeat policy which states:

With the advisor's approval, a student may repeat a course taken only once previously (second enrollment in the same course).  A student may enroll in the same course for a third or subsequent time only under unusual circumstances and within the written permission of the dean of the college of the student's first major.  An enrollment is counted as a repeat if a previous enrollment in the course resulted in a passing or failing grade. If a student enrolls in a course for a third or subsequent time without approval, the student will be administratively withdrawn from the course.

 Grading Policy: Grades for the course will be determined as follows:

Exams: 4 exams, 100 points each

400

A    90% or better

 

Quizzes

  60

B    80% to 89%

 

Business Plan Project

  50

C    70% to 79%

 

Article Summary

  10

D    60% to 69%

 

Total points for the semester

520

F   less than 60%

 

 

 

 

 

 Note: The chapter assignment schedule and examination dates (not the Final Exam date) are subject to change depending on the needs of the class and time spent covering the material.  More chapters and problem assignments may be added and some may be deleted.  The exam dates could be earlier or later than the dates listed above.  Each student is responsible for attending every class meeting to become aware of any changes.  The chapters are to be read and the problem assignments are to be completed before the class period on the dates shown in the schedule.

 Article Summary: Read and summarize a cost accounting related article from an accounting journal.  You should select one of the main articles in the periodical, and the article should be several pages in length.  Use the library resources to locate the article.  The summary will be two-page, double spaced, and the citation is to be placed at the top of the first page.  Also, use one inch margins and no smaller than 10 point type.  Attach a copy of the article to the summary if you do not use one supplied by the instructor. 

Date

Chapter Material

Assignments

May 12  M

Introduction; Blackboard;
Chapter 1 Managerial Accounting
Chapter 2 Cost Terms, Concepts

 
Ch 1: E1,E2,E3,E5,P7,P8
Ch 2: Q1,Q3,Q9,E1,E2

13  T

Chapter 2 Cost Terms, Concepts
Chapter 3 Job-Order Costing

Ch 2: E4,E6,E9,P19
Ch 3: Q1,Q4,Q16,E1,E3,E5

 

 

 

15  Th

Chapter 3 Job-Order Costing

Chapter 4 Process Costing

Ch 3: E7(part 1),E11(parts 1,3&4), P22,C29
Ch 4: Q1,Q5,Q9,E2

16  F

Chapter 4 Process Costing
Article Summary

Ch 4: E4,E8,P14,P17

 

 

 

19  M

Exam #1;  Chapters 1,2,3,4
Chapter 5 Cost Behavior

 
Ch 5: Q1,Q2,Q7,Q15

20  T

Chapter 5 Cost Behavior
Chapter 6 Cost-Volume-Profit

Ch 5: E9,P11,P12,P14
Ch 6: Q1,Q2,Q3,Q6,Q10,E1,E2

 

 

 

22  Th

Chapter 6 Cost-Volume-Profit
Chapter 7 Variable Costing

Ch 6: E3,E4,E9,P10,P14
Ch 7: Q1,Q6,Q7,E1,E2,E5

23  F

Chapter 7 Variable Costing
Business Pan Discussion

Ch 7: E6,P8,P9,P15,GE19

 

 

 

26  M

Holiday – No Class

 

27  T

Exam #2;  Chapters 5,6,7
Chapter 9 Profit Planning

 
Ch 9: Q1,Q3,Q5,Q10,Q11,E1,E2,E3

 

 

 

29 Th

Chapter 9 Profit Planning
Chapter 10 Standard Costs

Ch 9: E6,E7,P9,P10,GE26
Ch 10: Q1,Q2,Q5,Q6,Q8,E2

30  F

Chapter 10 Standard Costs

Chapter 11 Flexible Budgets 

Business Plan Outline Due

Ch 10: E5,E6,P11(parts 1&2),
P25(parts 1&2),C27
Ch 11: Q1,Q2,Q9,E1

 

 

 

June 2  M

Exam #3;  Chapters 9,10

Chapter 11 Flexible Budgets Chapter 12 Segment Reporting

 

Ch 11: E2,E3,E4,P14
Ch 12: Q1,Q2,Q3,Q6,E1,E2

3  T

Chapter 12 Segment Reporting
Chapter 13 Relevant Costs

Ch 12: E3,E4,E8,E9,E11,P14
Ch 13: Q1,Q2,Q3,Q4,Q8,Q13,E2,E3

 

 

 

5  Th

Chapter 13 Relevant Costs
Business Plans Due

Ch 13: E5,E6,E7,E8,E10,P12,P15

6  F

Exam #4;  Chapters 11,12,13

 

 Written Project - Business Plan

 Paper: This course requires a major writing assignment designed to add some relevancy and additional meaning to the course.  Each student may work individually or work on a team of two persons to write a business plan emphasizing the accounting aspects of starting a new business using financial and managerial accounting information described in this and the previous accounting course.  The paper should be around 4 to 5 pages in length, and must be the author’s original work.

We will be spending some class time during the term discussing the content of your plans.

 Specifics:

If you work on a team, each person must perform a fair share of the duties.  Your plan should contain the following information:

 1.  An explanation of the exact type of business being proposed.  For example, if you want to open a restaurant, indicate the type of restaurant (fast food, family style, formal/expensive; general American food, barbecue, fish, Chinese, Japanese; etc.).

 2.  Exact location of the business; i.e., which downtown Richmond office building, which street in Danville, or in your home.

 3.  Number of employees needed in each of the first two years.

 4. Prepare a pro-forma set of cash flow statements for the initial two years.  Explain why you estimated the specific projected cash collections.  For the expenses, use realistic amounts where possible (e.g., actual rent that must be paid to acquire the business space you need; prevailing wage rates, etc.).  Include all expenses your business would incur such as insurance, utilities, property taxes, etc.  Be sure to show the “salary” to be paid to you.

 5. Determine the amount of start-up capital you will need based on the two-year projection of cash flows.  Assume you will personally provide 20% of the start-up capital and you will finance the remaining 80% through some type of ten-year loan (bank, SBA, relatives who expect to be paid a market rate of interest, etc.). 

6. For any buildings and/or equipment you expect to purchase, show which cash funds will be used for their purchase (e.g., from the start-up capital, from additional financing, etc.).

 7.  Explain your terms of revenue collections (e.g., cash collected at time of sale or the credit terms allowed to customers).

 Remember:  This paper should emphasize the accounting portion of an overall business plan.  As part of this plan, you should explain why you are predicting a certain level of sales for each of the two years.

Helpful SBA web site:  http://www.sba.gov/starting/indexbusplans.html

Sample business plans:  http://www.bplans.com/samples/index.cfm?affiliate=pas&override=

 Due:   June 5 at the beginning of the class period.

 Note:  The project is due at the beginning of the class period shown in the schedule.  If the project is ten minutes late, ten points will be deducted from the grade.  If the project is one day late, 25 points will be deducted, and if the project is 2 or more days late, no points will be given.

 One final thought: this is a major part of your course grade.  Please treat it as such.