Smeal College of Business Pennsylvania State University Managerial Accounting B A 521 Professor Huddart Course Outline Part 1 Fundamental Accounting Practices Class 1 Friday January 15 1 30 2 30 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 14 University Tuition Benefits P2 23 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 2009 All rights reserved www personal psu edu sjh11 B A 521 Course Outline Class 2 Read Question Case Note Online problems Class 3 Saturday January 16 8 00 10 00 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 Saturday January 16 10 15 12 15 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 Friday January 29 1 30 2 30 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 Trucking Page 2 Course Outline Class 5 B A 521 Saturday January 30 8 00 10 00 Activity Based Costing Read Zimmerman Chapter 11 Listen http www thisamericanlife org Radio Episode aspx sched 1320 This American Life Episode 391 More is Less Case Class 6 Cambridge Hospital Community Health Network The Primary Care Unit Saturday January 30 10 15 12 15 Variance Analysis Read Zimmerman Chapters 12 and 13 Standard Costing Actual Normal and Standard Costing Flexible Budgets and Standards Caselet Case LSP Capsules Midwest Ice Cream Part 2 Organizational Design and Control Class 7 Friday February 12 3 45 5 45 Decentralization Motivation and Self Interest Read Zimmerman Chapter 4 Executive Compensation Compensation Concepts Incentives and Managerial Compensation Caselet Gamblers R Us Page 3 B A 521 Course Outline Class 8 Saturday February 13 1 00 3 00 Transfer Pricing Read Zimmerman Chapter 5 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 Class 9 Saturday February 13 3 15 5 15 Risk Management Read Risk Management Jeffrey Zaslow October 10 2002 Accused but not Convicted Wall Street Journal Case Kidder Peabody Co Creating Elusive Profits Class 10 Friday February 26 1 30 3 30 Cost Allocation Read Zimmerman Chapter 7 Allocations for Reasons External to the Firm Joint Costs 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 Cost allocation example Problem 7 10 Encryption Inc 7 26 BFR Ship Building Caselet Spence and Co Caselet GSB Inc Page 4 Course Outline Class 11 B A 521 Saturday February 27 8 00 10 00 Procurement Read 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 Question Allocating costs of support departments dual rates cost justification Rail and road Listen http www thisamericanlife org Radio Episode aspx sched 1321 This American Life Episode 392 Someone Else s Money Case Stanford University A Class 12 Saturday February 27 10 15 12 15 Ethics and Earnings Management Read Earnings Management James E Copeland Jr Ethics as an Imperative March 2005 Accounting Horizons 19 1 35 43 William J Bruns Jr and Kenneth A Merchant August 1990 The Dangerous Morality of Managing Earnings Management Accounting 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 Friday March 5 Page 5