Smeal College of Business Managerial Accounting: B A 521Pennsylvania State University Professor HuddartCourse OutlinePart 1. Fundamental Accounting PracticesClass 1. Monday, October 18Conceptual Framework and Cost-Volume-ProfitRead: Zimmerman, Chapters 1 and 2Introduction to Management AccountingCost-Volume-Profit AnalysisCost BehaviorQuestions: Goldman Sales mix, two productsIdentification of Fixed and Variable Costs—Grocery storeClay CompanyData collection issues—use regression (2 questions: 10–16and 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 ClassificationP2–21 Australian ShippingNote: You should download and review the “Regression lesson”fromhttp://www.personal.psu.edu/sjh11/Courses/BA521/index.shtmlOnline problem: Cell phonecSteven Huddart, 1995–2010. All rights reserved. www.personal.psu.edu/sjh11B A 521 Course OutlineClass 2. Wednesday, October 20Costing with and without constraintsRead: Zimmerman, Chapter 9Job Costing in ManufacturingRobin Cooper, (Jan/Feb 1989) “You Need a New CostSystem When . . . ” HBR No. 89102Question: The Juice Problem–Relevant costs, contribution margin,product emphasisPerl WhizAvas CateringCase: Seligram, Inc.: Electronic Testing OperationsNote: You should download and review the “Linear programminglesson” fromhttp://www.personal.psu.edu/sjh11/Courses/BA521/index.shtmlOnline problems: Perl Whiz (again)Two constraintsClass 3. Monday, October 25Decisions and Relevant CostsRead: Zimmerman, Chapter 3Caledonia: Ranking of capital budgeting projects, alterna-tive selection methods, capital rationingNPV SchemaDecisions and Relevant CostsCaselet: Special Electric CompanyOnline problem: Time value of moneyClass 4. Wednesday, October 27Capital Budgeting—Leasing, Taxes, Inflation, and Equi-libriumRead: Zimmerman, Chapter 5, section A onlyCapital Budgeting with Taxes and InflationCaselets: Diversified ElectronicsReal and Financial AssetsOnline problem: Sheehan Copy ShopPage 2Course Outline B A 521Class 5. Monday, November 1Activity Based Costing, Management, and PricingRead: Zimmerman, Chapter 11Case: Owens & Minor, Inc. (A)Class 6. Wednesday, November 3Variance AnalysisRead: Zimmerman, Chapters 12 and 13Standard CostingActual, Normal, and Standard CostingFlexible Budgets and StandardsCaselet: LSP CapsulesCase: Midwest Ice CreamPart 2. Decentralization, Motivation, and Self-InterestClass 7. Monday, November 8Equity CompensationRead: Zimmerman, Chapter 4Executive CompensationCompensation ConceptsIncentives and Managerial CompensationCaselet: Gamblers‘R’UsClass 8. Wednesday, November 10Transfer PricingRead: Zimmerman, Chapter 5, section B onlyTransfer PricingJonathan Marshall (March 2, 1992) “Crazy Pricing Pointsto Illegal Use of Foreign Trade, Study Says” SanFrancisco ChronicleM. Edgar Barrett (May/June 1975) “Case of the tangledtransfer price” HBR No. 77301Question: Anita Corporation: Multinational transfer pricing andtaxationCase: Del Norte Paper CompanyPage 3B A 521 Course OutlineClass 9. Monday, November 15Measuring and Improving ProductivityRead: Zimmerman, Chapter 14, section B onlyPerformance EvaluationRead on line: Steve Stecklow (September 2, 1997) “Kentucky’s TeachersGet Bonuses, but Some Are Caught Cheating” WallStreet JournalTimothy Aeppel (July 1, 2002) “Tricks of the Trade: OnFactory Floors, Top Workers Hide Secrets to Success”Wall Street JournalSharon Danann (August, 1990) “Cracking the ElectronicWhip” Harper’s MagazineCase: Texas Eastman Co.Class 10. Wednesday, November 17Risk ManagementRead: Risk ManagementRead on line: Jeffrey Zaslow (October 10, 2002) “Accused but not Con-victed” Wall Street JournalCase: Kidder, Peabody & Co.: Creating Elusive ProfitsPart 3. Organizational Design and ControlClass 11. Monday, November 29Cost AllocationRead: Zimmerman, Chapter 7Allocations for Reasons External to the FirmJoint CostsCost allocation exampleSkim on line: C. Paul Wazzan and H. E. Frech III, Allocating costs inNinth Circuit predatory pricing cases: Marsann Co.v. Brammall, Inc. and its problematic progeny, Inglisv. Continental Baking and Thales v. MatsushitaAntitrust Bulletin (Fall 2009) 54, 3: 651–681Problem: 7–11 Encryption, Inc.Page 4Course Outline B A 5217–27 BFR Ship BuildingCaselet: Spence and Co.Caselet: GSB, Inc.Class 12. Wednesday, December 1ProcurementRead: Zimmerman, Chapter 8Procurement IssuesSkim on line: Atul Gawande (June 1, 2009) “The Cost Conundrum:What a Texas town can teach us about health care”The New YorkerQuestion: Allocating costs of support departments; dual rates; costjustification (Rail and road)Listen: This American Life Episode 392: Someone Else’s MoneyCase: Stanford University (A)Class 13. Monday, December 6Ethics and Earnings ManagementRead: Earnings ManagementWilliam J. Bruns, Jr. and Kenneth A. Merchant (August1990) “The Dangerous Morality of Managing Earn-ings” Management AccountingRead on line: James E. Copeland, Jr. Ethics as an Imperative, (March,2005) Accounting Horizons 19, 1: 35–43David Burgstahler and Ilia Dichev, (December 1997)“Earnings management to avoid earnings decreasesand losses” Journal of Accounting and Economics 99–126. (extracts) Note: Study the figures closely.Complaint in Civil Action No. 05-MK-480 (OES) SE-CURITIES AND EXCHANGE COMMISSION, v.JOSEPH P. NACCHIO et al. (extracts)Susan Pulliam and Deborah Solomon (October 30, 2002)“Uncooking the Books: How Three Unlikely SleuthsDiscovered Fraud at WorldCom” Wall Street JournalCaselet: Nil Desperandum—Earnings managementOnline problem: Earnings managementExamination 2:00–4:00 p.m. Wed., Dec. 8Page