Smeal College of Business Managerial Accounting: B A 521Pennsylvania State University Professor HuddartCourse OutlinePart 1. Fundamental Accounting PracticesClass 1. Friday, January 15, 1:30–2:30Conceptual 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: P2–14 University Tuition BenefitsP2–23 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, 1995–2009. All rights reserved. www.personal.psu.edu/sjh11B A 521 Course OutlineClass 2. Saturday, January 16, 8:00–10:00Costing 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. Saturday, January 16, 10:15–12:15Decisions 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. Friday, January 29, 1:30–2:30Capital 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 TruckingPage 2Course Outline B A 521Class 5. Saturday, January 30, 8:00–10:00Activity Based CostingRead: Zimmerman, Chapter 11Listen: http://www.thisamericanlife.org/Radio Episode.aspx?sched=1320This American Life Episode 391: More is LessCase: Cambridge Hospital Community Health Network: ThePrimary Care UnitClass 6. Saturday, January 30, 10:15–12:15Variance AnalysisRead: Zimmerman, Chapters 12 and 13Standard CostingActual, Normal, and Standard CostingFlexible Budgets and StandardsCaselet: LSP CapsulesCase: Midwest Ice CreamPart 2. Organizational Design and ControlClass 7. Friday, February 12, 3:45–5:45Decentralization, Motivation, and Self-InterestRead: Zimmerman, Chapter 4Executive CompensationCompensation ConceptsIncentives and Managerial CompensationCaselet: Gamblers‘R’UsPage 3B A 521 Course OutlineClass 8. Saturday, February 13, 1:00–3:00Transfer PricingRead: Zimmerman, Chapter 5Transfer 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 CompanyClass 9. Saturday, February 13, 3:15–5:15Risk ManagementRead: Risk ManagementJeffrey Zaslow (October 10, 2002) “Accused but not Con-victed” Wall Street JournalCase: Kidder, Peabody & Co.: Creating Elusive ProfitsClass 10. Friday, February 26, 1:30–3:30Cost AllocationRead: Zimmerman, Chapter 7Allocations for Reasons External to the FirmJoint CostsC. 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: 651–681Cost allocation exampleProblem: 7–10 Encryption, Inc.7–26 BFR Ship BuildingCaselet: Spence and Co.Caselet: GSB, Inc.Page 4Course Outline B A 521Class 11. Saturday, February 27, 8:00–10:00ProcurementRead: Zimmerman, Chapter 8Procurement IssuesAtul 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: http://www.thisamericanlife.org/Radio Episode.aspx?sched=1321This American Life Episode 392: Someone Else’sMoneyCase: Stanford University (A)Class 12. Saturday, February 27, 10:15–12:15Ethics and Earnings ManagementRead: Earnings ManagementJames E. Copeland, Jr. Ethics as an Imperative, (March,2005) Accounting Horizons 19, 1: 35–43William J. Bruns, Jr. and Kenneth A. Merchant (August1990) “The Dangerous Morality of Managing Earn-ings” Management AccountingDavid 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 Friday, March 5Page