Management 413a
  Management Accounting

Module IIII, Spring 2006

Instructor: Germain Böer
Office: 343 Management Hall
Phone 322-2059
Email Address: germain.boer@owen.vanderbilt.edu
Homepage: http://www2.owen.vanderbilt.edu/germain.boer/boer1.html

Office Hours: By Appointment

Course Description

            This course covers the design of financial information systems to maximize the value they create for a firm.  A properly designed financial system enables company managers to make profit maximizing decisions, minimizes the time it takes a manager to estimate the profit impact of business alternatives, and motivates managers to do what is best for shareholders.  Although covering topics typically included in a management accounting course, this course will concentrate on ways managers can use these tools and techniques to create value for their firm.  

Much of the course will use manufacturing examples, but the concepts apply equally to nonmanufacturing firms. 

Class Assignments

            Unless the syllabus specifically states that an assignment is a group assignment, you are responsible for giving your instructor your own solution for the assigned work.  However, you may work with other individuals to develop your solution; you just have to create your own answer from your discussions with other classmates. 

Text Material 

You purchase one Class Pak from the bookstore plus a textbook.

            1.  Class Pak:  Budget schedules for K&R Products and problem materials
            2.  Managerial Cost Accounting: Planning and Control by Böer, Ferrara, Jeter and Steedle

Problem Materials for K&R Products.  The following problem sets provide an opportunity for students to learn in depth the concepts and techniques that underlie the K&R budget schedules and reports.  Each set is approximately ten to twelve pages long.

   Set 1:  Problems 1 through 29
    Set 2:  Problems 30 through 50
    Set 3:  Problems 51 through 71

Assignments

January 9

Course Introduction
Read: Text Chapter 1

January 11

Topic: Account Codes and Financial Systems. 
Read: Text Chapter 2, Chaney & Boer in Class Pak.  Click here for the database of transactions for Chaney & Boer. 
Homework: 2-24

January 16

Topic: Manufacturing Financial Statements
Read: Dynatronics Case
Homework: 2-21  Compute days in receivables for Dynatronics.  Read the case and see if you can find the information that tells how many days are in the different classes of inventory.  This case is at the back of the Cost Accounting Class Pak.
SQL Exercise 1 due 
Click here for an Access database with the data for all problems in the book you can work with Access

January 18

Topic: Cost Behavior and Cost-Volume-Profit Analysis
Read: Text Chapter 3
Homework:  Compute the cash gap for Walgreens and CVS, or select another industry and make these computations for any two companies in the industry you selected.
 Work K&R 1
SQL Exercise 2 due

January 23

Topic: Cost-Volume-Profit Analysis
Read: None
Homework: K&R 2; read problems 3-39, 3-40.  Do not work these last two problems.
SQL Exercise 3 due
Spreadsheet for doing profit graphs.
Contribution template for K&R contribution schedules.  All you have to add is unit sales and traceable fixed costs.
Database that allows you to extract unit sales and traceable fixed costs for any K&R contribution schedule.  I have already set up queries that you can modify to instantly grab the data you need to reconstruct any contribution schedule.  You have to execute two queries to get all the data you need, but you know how to do that.

January 25

Topic: Cost-Volume-Profit Analysis
Read:  None
Homework: None
SQL Exercise 4 due

January 30

Topic: Developing Product Costs to Maximize Firm Value and Tracking Job Costs
Read: Text Chapter 5 and 6 and Read Destin Brass Case
Homework: Compute the estimated market cap for Dell Computer if the company could earn the same margin percentage as AnhnTaylor Stores.
SQL Exercise 5 due

February 1

Topic:  Contribution Accounting
Read:  Chapter 12, Contribution Accounting
Homework: 

February 6

Topic: Identifying Potential Profits in Operations
Read: Chapter 8 and 9
Homework: K&R 3 and K&R 4, 5-14, 5-18

February 8

Topic:  Matching Cost Data to Management Decisions
Read:  Vatter article distributed in class
Homework:  Handout Problem 2

February 13

Topic: Cost Data for External Financial Reports Versus Decision Making
Read:  None
Homework: Work Industrial Grinders Case in assigned groups
SQL Exercise 6 due   

February 15

Topic: Revenue Tracking Systems
Read: Chapter 12
Homework: K&R 8

Spreadsheet with pareto analysis of product contribution
Spreadsheet for comparing direct cost and absorption cost net incomes.

February 20

Topic: Using Contribution Information to Identify Value Creating Opportunities.  Click here for a discussion of contribution variances.
Read: Midwest Ice Cream Case
Homework: Prepare case analysis--Work with your assigned partner.

February 22

Topic: A Total Financial Tracking and Reporting System
Review: K&R Contribution Schedules and Budget reports on yellow pages
Homework: K&R 9
Click here for a database and a spreadsheet you can use to prepare K&R contribution schedules.

Contribution Accounting Slides

You will have a three-hour final examination. All examinations are open book and open notes.

Course Grade:

Homework requirement: Unless you do at least one-half the homework on time and in acceptable form, you will receive an automatic grade of F.

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