Smeal College of Business Pennsylvania State University Managerial Accounting B A 521 Professor Huddart Course Outline Part 1 Fundamental Accounting Practices Class 1 Monday October 18 Conceptual Framework and Cost Volume Profit Read Zimmerman Chapters 1 and 2 Introduction to Management Accounting Cost Volume Profit Analysis Cost Behavior Questions Goldman Sales mix two products Identification of Fixed and Variable Costs Grocery store Clay Company Data collection issues use regression 2 questions 10 16 and 10 17 The data files 10 16 csv and 10 17 csv may be downloaded from the course web page Problems P2 20 Manufacturing Cost Classification P2 21 Australian Shipping Note Online problem You should download and review the Regression lesson from http www personal psu edu sjh11 Courses BA521 index shtml Cell phone c Steven Huddart 1995 2010 All rights reserved www personal psu edu sjh11 B A 521 Course Outline Class 2 Read Question Case Note Online problems Class 3 Wednesday October 20 Costing with and without constraints Zimmerman Chapter 9 Job Costing in Manufacturing Robin Cooper Jan Feb 1989 You Need a New Cost System When HBR No 89102 The Juice Problem Relevant costs contribution margin product emphasis Perl Whiz Avas Catering Seligram Inc Electronic Testing Operations You should download and review the Linear programming lesson from http www personal psu edu sjh11 Courses BA521 index shtml Perl Whiz again Two constraints Monday October 25 Decisions and Relevant Costs Read Zimmerman Chapter 3 Caledonia Ranking of capital budgeting projects alternative selection methods capital rationing NPV Schema Decisions and Relevant Costs Caselet Special Electric Company Online problem Time value of money Class 4 Wednesday October 27 Capital Budgeting Leasing Taxes Inflation and Equilibrium Read Zimmerman Chapter 5 section A only Capital Budgeting with Taxes and Inflation Caselets Diversified Electronics Real and Financial Assets Online problem Sheehan Copy Shop Page 2 Course Outline Class 5 Read Case Class 6 B A 521 Monday November 1 Activity Based Costing Management and Pricing Zimmerman Chapter 11 Owens Minor Inc A Wednesday November 3 Variance Analysis Read Zimmerman Chapters 12 and 13 Standard Costing Actual Normal and Standard Costing Flexible Budgets and Standards Caselet LSP Capsules Case Midwest Ice Cream Part 2 Decentralization Motivation and Self Interest Class 7 Monday November 8 Equity Compensation Read Zimmerman Chapter 4 Executive Compensation Compensation Concepts Incentives and Managerial Compensation Caselet Gamblers R Us Class 8 Wednesday November 10 Transfer Pricing Read Zimmerman Chapter 5 section B only Transfer Pricing Jonathan Marshall March 2 1992 Crazy Pricing Points to Illegal Use of Foreign Trade Study Says San Francisco Chronicle M Edgar Barrett May June 1975 Case of the tangled transfer price HBR No 77301 Question Anita Corporation Multinational transfer pricing and taxation Case Del Norte Paper Company Page 3 B A 521 Course Outline Class 9 Monday November 15 Measuring and Improving Productivity Read Zimmerman Chapter 14 section B only Performance Evaluation Read on line Steve Stecklow September 2 1997 Kentucky s Teachers Get Bonuses but Some Are Caught Cheating Wall Street Journal Timothy Aeppel July 1 2002 Tricks of the Trade On Factory Floors Top Workers Hide Secrets to Success Wall Street Journal Sharon Danann August 1990 Cracking the Electronic Whip Harper s Magazine Case Texas Eastman Co Class 10 Read Read on line Case Wednesday November 17 Risk Management Risk Management Jeffrey Zaslow October 10 2002 Accused but not Convicted Wall Street Journal Kidder Peabody Co Creating Elusive Profits Part 3 Organizational Design and Control Class 11 Monday November 29 Cost Allocation Read Zimmerman Chapter 7 Allocations for Reasons External to the Firm Joint Costs Cost allocation example Skim on line C Paul Wazzan and H E Frech III Allocating costs in Ninth Circuit predatory pricing cases Marsann Co v Brammall Inc and its problematic progeny Inglis v Continental Baking and Thales v Matsushita Antitrust Bulletin Fall 2009 54 3 651 681 Problem 7 11 Encryption Inc Page 4 Course Outline B A 521 7 27 BFR Ship Building Caselet Spence and Co Caselet GSB Inc Class 12 Read Skim on line Question Listen Case Class 13 Wednesday December 1 Procurement Zimmerman Chapter 8 Procurement Issues Atul Gawande June 1 2009 The Cost Conundrum What a Texas town can teach us about health care The New Yorker Allocating costs of support departments dual rates cost justification Rail and road This American Life Episode 392 Someone Else s Money Stanford University A Monday December 6 Ethics and Earnings Management Read Earnings Management William J Bruns Jr and Kenneth A Merchant August 1990 The Dangerous Morality of Managing Earnings Management Accounting Read on line James E Copeland Jr Ethics as an Imperative March 2005 Accounting Horizons 19 1 35 43 David Burgstahler and Ilia Dichev December 1997 Earnings management to avoid earnings decreases and losses Journal of Accounting and Economics 99 126 extracts Note Study the figures closely Complaint in Civil Action No 05 MK 480 OES SECURITIES AND EXCHANGE COMMISSION v JOSEPH P NACCHIO et al extracts Susan Pulliam and Deborah Solomon October 30 2002 Uncooking the Books How Three Unlikely Sleuths Discovered Fraud at WorldCom Wall Street Journal Caselet Nil Desperandum Earnings management Online problem Earnings management Examination 2 00 4 00 p m Wed Dec 8 Page 5