203syllabus.html



Edmonds Community College

Managerial Accounting  - Accounting 203B - Spring 2008

Monday - Friday - 9:30 – 10:20 a.m. SNH 337

Instructor: Andy Williams

Textbooks: Financial & Managerial Accounting, Eighth Edition, by Needles, Powers, and Crosson is required.  The authors have made additional materials at their web site at

Equipment and software: Computer with reliable Internet access, web browser, word processor and spreadsheet software. You can find a list of the minimum computer system requirements necessary at the EdCC Distance Learning Office web pages. A calculator, paper and pencils will also prove to be handy. For that matter, your fine mind and your ability to communicate can also be considered to be equipment necessary for this course!

Availability:  The best way to reach me is via email at . You can also reach me by phone at 425-640-1450. If you want to meet in person, you can find me in my office in SNO #235. My office hours are Monday - Thursday: 11:30 a.m. – 12:30 p.m. You can also find additional information on my web page at .

Prerequisites: A minimum grade of 2.0 in Financial Accounting 1 (ACCT 201) is a prerequisite for this course. Minimum placement in EAP (English for Academic Purposes) 121 or Bridge 93, roughly the equivalent of American High School English, is a prerequisite for this course. Mathematical ability equivalent to Math 60 or Business Math (BUS 130), again the equivalent of High School Algebra is also recommended. Proficiencies in computer spreadsheet and word processing applications will be helpful to those students who have acquired those skills.

This is a class that uses the tools of the Internet, the World Wide Web, as well as standard business software, such as spreadsheets and word processors. You should be familiar with these tools before taking this course. A good way to assess your computer skills and technical ability is to complete the Online Study Overview at the EdCC DLO website. Please review that assessment prior to beginning this course. If you have any questions about these prerequisites and recommendations, please discuss them with me as soon as possible.

We will be using the Blackboard software for our virtual classroom. Blackboard creates a complete online classroom on a Web site. Students need access to the WWW and a Web browser; no other online software is required. Successful completion of student responsibilities in this class requires access to Blackboard via an Internet browser. Complete instructions for logging into Blackboard are located at the EdCC DLO website. Also at that site are links to various resources, plug ins, and tips and tricks that you may find useful.

If you have any questions regarding these prerequisites, let’s discuss them as soon as we can.

Accessibility: If you require an accommodation for a disability, please contact Services for Students with Disabilities at MLT 159, 425.640.1320. ssdmail@edcc.edu.

Course Objectives: Managerial Accounting (ACCT 203) is designed to build on the objectives mastered by students in an introductory financial accounting course.  The primary objective of this course is to develop your knowledge of managerial accounting functions and procedures.  We will emphasize the use of those functions and procedures for internal planning and control, as well as the development of an information system for management's decision-making processes.  The following college-wide abilities and specific learning outcomes are taught, applied and assessed in this course:

Critical Thinking Outcomes:

• Observe, analyze, synthesize, apply and evaluate business information.

• Identify arguments, evaluate claims, and form conclusions based on standard business practices.

• Identify and analyze problems and options, then select and implement appropriate solutions, and evaluate outcomes appropriate to course content.

• Examine and evaluate personal thinking as well as the thought process and perspectives of others.

Communication Outcomes:

• Prepare and present clear, concise, well-developed written communications in Standard English with correct punctuation and spelling, using business-appropriate word processing formats and styles.

• Write clear organized short informational reports using correct format and report writing principles.

• Use listening skills that enhance relationships in a business environment.

Quantitative Skills Outcomes:

• Use mathematics to solve quantitative business issues and problems.

• Calculate and explain the costs and benefits of simple financial choices encountered in financial planning and strategic decision-making.

• Use personal computers and other tools most commonly used by business to obtain, store, organize and communicate quantitative business information.

Specific Course Outcomes for Accounting 203:

• Describe and understand how accounting is used to develop an information system for use by management in the process of making decisions.

• Define different types of costs and explain the flow of costs from the point of their origin to the sale of completed products.

• Describe the similarities and the differences between job-order and process costing, and develop schedules to report manufacturing costs to management.

• Identify variable, fixed and mixed costs, and explain cost-volume-profit relationships.

• Explain the differences between variable and absorption costing methods, and their effects on management reporting.

• Define and describe the budgeting process, and prepare budgets for a manufacturer.

• Develop standard costing systems, and compute price and quantity variances for materials, labor and overhead costs.

• Develop methods of analysis to determine the most appropriate utilization of scarce resources.

General Course Schedule

Week One:  Managerial Accounting and the Business Environment

 4/7 - 4/11 Learning Objectives

• Describe the need for managerial accounting information in a competitive business environment.

• Explain the management cycle, total quality management and the use of managerial accounting information in the measurement of performance.

• Distinguish between financial and managerial accounting, and between merchandising and manufacturing operations.

• Develop income statements and balance sheets for a manufacturer.

• Prepare schedules of Cost of Goods Manufactured and Cost of Goods Sold.

Week Two:  Job Order Cost Systems and Overhead Allocation

4/14 - 4/18: Learning Objectives

• Explain the flows of costs through the manufacturing process.

• Identify manufacturing costs, including labor, materials, and overhead.   Differentiate between product and period costs.

• Identify, describe and give examples of variable costs, fixed costs, direct and indirect costs, differential costs and opportunity costs, and sunk costs.

• Define cost allocation and explain the overhead allocation process.

• Calculate the unit costs of product using traditional and activity-based models.

Week Three:  Systems Design:  Job-Order Costing

4/21 - 4/25: Learning Objectives

• Distinguish between different product costing systems

• Explain the flow of costs in a job-order costing system

• Apply overhead costs to Work-in-Process using a predetermined overhead rate.

• Compute a job-order product unit cost.

• 4/25 - Presentations

Week Four: Job-Order Costing

• 4/28  - Exam #1

Activity-Based Costing and the Value Chain

4/29 - 5/2  Learning Objectives

• Define activity-based management, supply chains and value chains.

• Distinguish between value adding and non-value adding activities.

• Define cost hierarchy and explain the use of a bill of activities in activity-based costing.

• Define a Just-in-Time operating environment, and identify changes that result from JIT.

• Identify the components of the cost of quality and the characteristics of quality measures.

Week Five: Cost-Volume-Profit Analysis

5/5 - 5/8 Learning Objectives

• Explain the effects of activity changes on total and per-unit costs.

• Distinguish between committed and discretionary fixed costs.

• Use a cost formula to predict costs at a new level of activity.

• Describe effects of change in cost, price and volume on contribution margin and net income.

• Compute the break-even point using several methods.

• Use break-even analysis to determine a desired activity level.

• 5/9 – Non-instructional day

Week Six:  Incremental Analysis

5/12 - 5/16 Learning Objectives

• Distinguish between relevant and irrelevant costs for decision-making.

• Analyze the decisions to retain or drop product lines and organizational segments.

• Analyze the decisions to make or buy a product, or whether to accept a special order.

• Develop methods of analysis to determine the most appropriate utilization of scarce resources.

Week Seven: Incremental Analysis

5/19 - 5/23 Learning Objectives

• Distinguish between relevant and irrelevant costs for decision-making.

• Analyze the decisions to retain or drop product lines and organizational segments.

• Analyze the decisions to make or buy a product, or whether to accept a special order.

• Develop methods of analysis to determine the most appropriate utilization of scarce resources.

• 5/22 – Presentations

• 5/23 – Exam #2

Week Eight: Operational Budgeting

 5/26 – 5/30 Learning Objectives

• 5/26 – Memorial Day – No Classes

• Define budgeting, and describe planning and control.

• Explain the master budget interrelationships.

• Prepare budgets for sales, production, direct materials, overhead, selling and administration, and a cash budget.  

• Prepare a budgeted income statement and balance sheet.

• Define responsibility accounting and responsibility centers.

 Week Ten:  Standard Costing Systems

 6/2 – 6/6 Learning Objectives

• Define standard costs and describe standards are derived.

• Compute direct materials price and quantity variances, and explain their significance. Compute direct labor rate and efficiency variances, and explain their significance.

• Compute manufacturing overhead spending and quantity variances.

• Explain how variance analysis is used in management decision-making.

Week Eleven:  Performance Management and Evaluation

6/9 - 6/13 Learning Objectives

• Describe how the balanced scorecard aligns performance with organizational goals

• Describe performance measurement and the issues that affect measurement of performance.

• Prepare performance reports for various types of responsibility centers.

• Explain how performance measures and incentives add value for all stakeholders in performance management and evaluation.

Week Eleven:

6/18 - Final Exam – 9:30 – 11:20 a.m.

Assessment of Learning Outcomes:

Please read my policy on Academic Integrity!

Student learning of the course objectives will be assessed by a variety of instruments, including in-class objective testing, completion of written homework problems and case analyses, discussion questions, and oral presentations.

NO EXAM MAKEUPS WILL BE ALLOWED unless instructor receives sufficient notice and adequate reasons prior to scheduled exam.

Specific homework problems and other assignments will be assigned periodically throughout the course, usually at the beginning of each unit. The assigned homework is the minimum that you should prepare to successfully complete this course. NO LATE HOMEWORK ASSIGNMENTS WILL BE ACCEPTED for any reason without prior approval from the instructor. If you know that you will need more time on an assignment, please contact me BEFORE THE ASSIGNMENT IS DUE so we can discuss the situation. Homework assignments will be graded on the bases of quality of presentation, completeness, and accuracy.

 Grades:  Points will be earned as follows:

|2 exams |200 |

|Final Exam |150 |

|Assignments & Exercises |100 |

|Team Project |150 |

|Total possible |600 |

Decimal grades will be determined by the Accounting Department Decimal Grading Table.

V” grades are not available. If you need to withdraw from the course, please do so by the date on the EdCC Academic Calendar.

“I” grades are only available with prior approval of the instructor based on extenuating circumstances and a specific agreement to complete the class in a timely manner.

Accounting Department Decimal Grading Scale

|Percentage of Total Points |Decimal Grade |Letter Grade Equivalent |

|95 - 100% |4.0 |A |

|94 |3.9 |A |

|93 |3.8 |A |

|92 |3.7 |A |

|91 |3.6 |A- |

|90 |3.5 |A- |

|89 |3.4 |B+ |

|88 |3.3 |B+ |

|87 |3.2 |B |

|86 |3.1 |B |

|85 |3.0 |B |

|84 |2.9 |B |

|83 |2.8 |B |

|82 |2.7 |B |

|81 |2.6 |B- |

|80 |2.5 |B- |

|79 |2.4 |C+ |

|78 |2.3 |C+ |

|77 |2.2 |C |

|76 |2.1 |C |

|75 |2.0 |C |

|74 |1.9 |C |

|73 |1.8 |C |

|72 |1.7 |C- |

|71 |1.6 |C- |

|70 |1.5 |C- |

|69 - 67 |1.4 |D+ |

|66 |1.3 |D |

|65 |1.2 |D |

|64 |1.1 |D |

|63 |1.0 |D- |

|62 |0.9 |D- |

|61 |0.8 |D- |

|60 |0.7 |D- |

|Score < 60% |0.0 |No Credit |

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