ACC122Syllabus Online Sum 20 PDF

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ACC 122 – Managerial Accounting Online College of Lake County – Summer 2020 Business and Social Science Division – Sections 800 and 801, Classes No. 8253 and 8260 Instructor: Patrick G. Stegman, Professor of Accounting Contact Information: CLC Office: T 213 CLC Telephone: 847-543-2524 Fax: 847-543-3097 E-mail: [email protected] Office Hours: Tuesdays/Thursdays 12 pm – 1 pm (Via Zoom) By appointment Instructor Availability: Please contact me if you are having any problems with the course material. E-mail is best. I will make every effort to respond within 24 hours. You can launch an e-mail directly from Canvas, Connect, or from your CLC email account. If you want to speak to me directly, I will be available on Zoom from 12 pm to 1 pm. You may also schedule an appointment with me. I am here to help you succeed, so don’t hesitate to contact me. Text: Brewer, Garrison, & Noreen, Introduction to Managerial Accounting, 8th edition Other Requirements: Connect at connect.mheducation.com. The specific url for the course is listed under “Connect” later in this syllabus. Access to this homework management system is required. New and/or used texts purchased from the CLC bookstore come packaged with access to Connect. The CLC bookstore also offers Connect access separately. Connect may also be purchased directly from the publisher. Since Connect includes an e-version of the textbook, you may be able to forego the hard copy of the text. Alternatively, you may purchase Connect and then supplement that with an older version of the text or a lower cost binder version available from the publisher. Both the 6th and 7th editions are comparable. This is a personal decision for each student to determine. Credit Hours: 4 Prerequisites: ACC 121 Financial Accounting (C or better) Student Commitment: This course is offered totally online, except for the final exam. It is not a self-paced course. Minimum time for completing assigned activities is approximately 20-24 hours per week.

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Course Overview: This course emphasizes managerial accounting, focusing on the internal rather than the external aspects of business transactions. As such, management accountants are part of an organization’s strategic team. They must understand not only the financial side of the organization, but must be equally cognizant of the operational side of the organization’s processes. Managerial accountants use their knowledge and skills to influence decisions that create value for the organization’s stakeholders through planning, budgeting, forecasting, and decision support. These skills include financial analysis, critical thinking, problem solving, and decision-making. COURSE OBJECTIVES: •

Prologue – Managerial Accounting: An Overview: Describe the role of management accountants in an organization. Identify major differences and similarities between financial and managerial accounting. Explain why managerial accounting is important for careers in business. Identify current issues that are impacting the accounting environment. Be aware of the importance of professional ethics. Know the elements of the code of conduct for management accountants.

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Chapter 1 – Managerial Accounting and Cost Concepts: Distinguish between the various types of costs classifications used for assigning costs to cost objects such as direct costs and indirect costs. Know the three manufacturing costs and distinguish between product and period costs for financial statements. Understand cost classifications used to predict cost behavior including variable costs, fixed costs, and mixed costs. Define differential costs, sunk costs, and opportunity costs for decision making. Construct income statements for merchandising companies using traditional and contribution formats.

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Chapter 2 – Job-Order Costing: Calculating Unit Product Costs: Identify criteria for using job-order costing. Identify companies that would use job-order costing. Know the process and documents used for assigning direct materials, direct labor, and manufacturing overhead including the calculation of a predetermined overhead rate (POHR). Be able to explain why estimated overhead rates are used. Compute the total cost and unit product cost of a job using a plantwide overhead rate or using multiple predetermined overhead rates.

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Chapter 3 – Job-Order Costing: Cost Flows and External Reporting: Understand and be able to record the flow of materials, labor, and overhead in a job-order system. Use Taccounts to explain the flow of costs. Prepare schedules of cost of goods manufactured and cost of goods sold. Use the cost of goods manufactured and cost of goods sold to accurately complete income statements. Compute under or overapplied overhead and prepare the journal entry to close the balance in the Manufacturing Overhead account.

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Chapter 4 – Activity-Based Costing: Express the concepts of activity-based costing. Distinguish between activity-based costing and traditional costing systems. Demonstrate how traditional systems are based on unit-level cost drivers resulting in more overhead assigned to higher production levels, while activity-based costing is based on using both unit-level and non-unit level cost drivers to more accurately assign overhead. Identify the steps in the development of an activity-based costing system. Compute activity rates for

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an activity-based costing system and apply rates to compute product costs. Identify the benefits and limitations of activity-based costing. •

Chapter 5 – Process Costing: Select situations where process costing is used. Identify companies that would use process costing. Record the flow of materials, labor, and overhead through a process costing system. Using the weighted-average method, compute the equivalent units of production, prepare a quantity schedule, compute the cost per equivalent unit, and prepare a cost reconciliation. Discuss the uses of the production cost report.

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Chapter 6 – Cost-Volume-Profit Relationships: Explain the behavior of fixed and variable costs. Separate fixed and variable costs when a mixed cost is present using the high-low technique. Use cost behavior to predict costs. Perform cost-volume-profit (CVP) analysis. Explain a CVP graph. Use the concept of contribution margin and show the impacts on contribution margin from changes is variable and fixed costs, selling price, and volume. Compute the break-even point in unit sales and sales dollars. Given a desired target operating profit, compute the required level of sales in both units and dollars. Determine the margin of safety and know its significance. Determine the impact of changes in sales mix on the break-even point. Compute the weighted average contribution margin given a sales mix. Describe the concept of operating leverage and be able to determine the degree of operating leverage. Construct a CVP income statement.

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Chapter 7 – Variable Costing and Segment Reporting: Tools for Management: Explain how variable costing differs from absorption costing and compute unit product costs under each method. Prepare income statements under both variable and absorption costing. Reconcile the differences between variable and absorption costing net operating incomes. Prepare segmented income statements that differentiate traceable fixed costs from common fixed costs for decision making. Compute company-wide and segment break-even points for a company with traceable fixed costs.

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Chapter 8 – Master Budgeting: Describe the budgeting process and explain the organizational benefits of budgeting. Prepare several types of budgets including sales budgets, production budgets, direst materials budgets, direct labor budgets, manufacturing overhead budgets, selling and administrative budgets, and cash budgets. Based on the component budgets, describe the process for constructing budgeted income statements and budgeted balance sheets.

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Chapter 9 – Flexible Budgets, Standard Costs, and Variance Analysis: Prepare a planning budget and a flexible budget and explain the differences. Calculate and interpret revenue and spending variances. Prepare a flexible budget with more than one cost driver. Compute direct materials and direct labor price and quantity variances and explain their significance. Compute overhead variances and interpret their significance.

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Chapter 10 – Performance Measurement in Decentralized Organizations: Determine return on investment (ROI). Explain how changes in sales, expenses, and assets impact ROI. Discuss the limitations of ROI and the advantage of using residual income as a supplementary performance measure. Compute through-put time, delivery cycle time, and manufacturing cycle efficiency (MCE). Describe the construction and use of a balanced scorecard. 3

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Chapter 11 – Differential Analysis: The Key to Decision Making: Outline the steps in management decision-making. Explain incremental analysis. Define relevant costs and identify the relevant costs for special orders, make-or-buy decisions, sell or process further decisions, retain or replace equipment, and in deciding whether to eliminate an unprofitable segment. Determine the most profitable use of a constrained resource and the value of obtaining more of the constrained resource.

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Chapter 12 – Capital Budgeting Decisions: Compute and evaluate the acceptability of an investment project using payback, net present value (NPV), and internal rate of return (IRR). Compute the simple or annual rate of return for an investment. Rank investments in order of preference.

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Chapter 13 – Statement of Cash Flows: Explain and interpret the statement of cash flows. Distinguish noncash balance sheet accounts as either sources or uses of cash. Classify transactions as operating, investing, or financing activities. Construct a statement of cash flows using the indirect method. Compute and explain free cash flow.

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Chapter 14 – Financial Statement Analysis: Prepare and interpret financial statements in comparative and common-size form. Complete financial statement analysis using ratios. Compute and interpret activity ratios, profitability ratios, liquidity ratios, debt ratios, and market ratios.

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All Chapters: Demonstrate proficiency using the Excel spreadsheet program. Design and develop specific problem-based spreadsheets. Demonstrate the ability to critically examine an accounting issue and then summarize your findings in a clear, concise, and correctly written business memo.

COURSE INFORMATION AND POLICIES: Managerial accounting covers many different topics as noted in the objectives in the previous section. Its focus is on decision-making. While some topics are more difficult than others, success in the course is related to the effort and commitment of each individual student. You can successfully complete this course! Assessment of Course Objectives: The assessment of course objectives will be accomplished through the use of several measurement techniques. •

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First, three exams and a final exam will be administered to determine the overall understanding of the course objectives, including theoretical concepts and practical application of the knowledge through the analysis of various situations and the solution of problems. Second, chapter quizzes will be self-administered to assess understanding and evaluate the ability to solve problems. These quizzes in Connect include 20 multiple-choice questions each. You will be given two attempts for each quiz. Third, homework is assigned using the Connect system. It includes LearnSmart, homework practice sets, and graded homework. LearnSmart should be used after you have read the chapter. Homework practice sets can be done as many times as you want to learn the procedures. The graded homework should be done after you are comfortable 4

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with the practice problems. These problems can be done three times, with additional aids available after the initial attempt. There are no points for the practice sets. Fourth, there will be one written assignment involving the critical examination of an accounting problem. This will require the submission of a written business recommending a course of action. Once completed, the assignment is to be uploaded into Canvas. Fifth, there will be six assignments that require the use of Excel worksheets. The ability to use Excel is a necessary skill for accountants. As a result, these assignments will involve solving managerial accounting problems that require the construction and use of Excel worksheets. Once completed, these assignments are to be uploaded to Canvas for grading. Finally, there will be questions/discussion boards for about half of the chapters. These will be in Canvas and require you to both answer questions and to provide feedback regarding the postings of other students.

Grading: As outlined in the above paragraph, points will be assigned to each of the items. The first three exams are worth 375 points in total. The comprehensive final is worth 200 points. Connect quizzes, LearnSmart, and homework assignments are worth approximately 140 points total or 0.2 points per point in Connect. The written assignment will be worth 30 points. There are five Excel projects that are worth 5 points each and one that is worth 10 points. Questions/discussions are worth 4 points each. To earn full credit for a discussion, you must answer each question completely and provide timely feedback to another student. Total points may vary slightly and are summarized in the table below. Final Course Grade Exceptions: In order to successfully complete this course, a student must complete the four exams, the writing assignment, and at least five of the Excel assignments. Failure to complete any of these assignments will result in the assignment of the grade of F or FW as appropriate. Item

Available Approximate Points Percentage 375 46% 200 25% 32 4% 30 4% 35 4% 56 7% 28 3% 56 7%

Exams Final Exam Questions/Discussions/Other Written Assignment Excel Assignments Connect Homework Connect LearnSmart Connect Quizzes Total

812

100%

Grades for the course will be as follows: A B C D F

90-100% of available points AND 75% or higher on the comprehensive final. 80-89% of available points AND 65% or higher on the comprehensive final. 70-79% of available points AND 55% or higher on the comprehensive final. 60-69% of available points AND 45% or higher on the comprehensive final. Less than 60% of available points OR less than 45% on the comprehensive final. 5

Please note that final grades are based on both the overall course percentage and the final exam. If, for example, you have an overall 75% in the course, but your percentage on the final exam is only 44%, your grade will be an F. Similarly, if you score 80% on the final but your overall percentage is 73%, your grade will be a C. Minimum scores on the final exam are to ensure that students can demonstrate an acceptable level of learning based on retention of the material. Coursework: Preparation and coursework are integral parts of any accounting course. There are several components to coursework. First, there are discussions based on questions from the course material for some of the chapters. For these, you will post answers and respond to other students using the discussion boards in Canvas. Second, reading the text is facilitated by the use of LearnSmart in Connect. Third, exercises and problems are completed within Connect except for the Excel and writing assignments which are uploaded within Canvas. Additionally, coursework includes reading the text, taking notes, and preparing for exams and quizzes. In order to attain the greatest benefit from the course, students are encouraged to read and outline chapters and to study the review problems at the end of each chapter. Signing Into Canvas: This course is not self-paced. You should plan on signing into Canvas at least every 48 hours as a minimum. Additionally, you need to keep a close eye on the schedule, as specific due dates have been assigned for various activities. The course content has been organized into modules that correspond to the chapters in the text. For example, Learning Module 12 corresponds to Chapter 12 of the text. Introductory and Overview modules have been added at the beginning of the course. Getting Started in the Course: There is a module in Canvas called “Getting Started.” This should be your first stop before you actually begin the course. Canvas: Many class items will be available using the Canvas site assigned to the class. For simplicity, several modules have been created within Canvas to help you navigate. All information for the course, with the exception of Connect, will be found there. Additionally, a link to Connect has been included in Canvas to take you directly to this site for login. Connect LearnSmart, Practice, and Homework Assignments: Assigned LearnSmart, practice, and homework will be completed using the Connect homework management system. These items will be assessed and scored by the system. LearnSmart scores are not recorded until the due date. Practice problems are given unlimited attempts. Homework can be attempted three times, with additional aids available after the initial attempt. Homework and LearnSmart will be scored and be a part of the overall grade. Connect homework due dates are found in the Connect system. Credit for LearnSmart and homework will be transferred to the Canvas grade book on the dates of the exams. Accounting requires substantial practice in order to reinforce procedures covered during class. The use of the Connect system offers an effective way to practice and to ensure your understanding of the material. Prior experience has demonstrated that students completing homework in a timely manner due better on exams. Connect Quizzes: There is a Connect quiz for each chapter. Each quiz contains 20 multiplechoice questions. Prior to taking a chapter quiz, a student should complete some work using LearnSmart in Connect. You may attempt each quiz two times. The second attempt allows students to correct for errors in the first attempt. Each quiz is worth four points total or 0.2 points per question when transferred to Canvas. Connect quiz due dates are found in the Connect

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system. Once the due date has passed, you may use the quizzes for study aids. Credit for quizzes will be transferred to the Canvas grade book on the dates of the exams. Connect Access: Access to Connect is obtained by either purchasing a new text from the CLC Bookstore, including an access code to Connect, purchasing a Connect access code separately, or by going to www.mheducation.com and purchasing the product online. You will need the following url for your specific section: Section 800 Section 801

https://connect.mheducation.com/class/p-stegman-summer-2020-800 https://connect.mheducation.com/class/p-stegman-summer-2020-801

Register as soon as possible so that you do not get behind. Within Connect are the actual LearnSmart, practice, and homework assignments and chapter quizzes. The due dates for the required assignments are listed in Connect and in the detailed schedule on Canvas. Final Exam (Comprehensive): The final exam is administered in Canvas. It is comprehensive. Your final course grade requires you to achieve a minimum score on this exam. (See Grading above.) This policy is consistent with all ACC 122 classes at CLC. The final exam is scheduled for July 30. Times will be provided later in the term. For the final exam, you will be required to use your computer or tablet for access to Canvas and your cell phone for zoom. Your phone will be set up to show your workspace during the final exam. This will satisfy the proctoring requirement for this exam. Course Schedule: The detailed class schedule can be found in Canvas under its own modul...