THE UNIVERSITY OF ILLINOIS AT CHICAGO
College of Business Administration
Department of Accounting
Accounting 111 – Managerial Accounting
Fall 2004
Instructors:
Yehia A. Salama Ahmed Riahi-Belkaoui
T/R 9:30 -10:45 (10028) T/R 11:00 -12:15 (10030)
Office: 2312 University Hall Office: 2332 University Hall
Phone: (312) 413 -1532 Phone (312) 996 - 4400
E-mail:ysalama@uic.edu E-mail: belkaoui@uic.edu
Office Hours: Tue, and Thu, Office Hours: Mon, - Thu,
1:00 – 3:00p.m. 2:00 – 3:00 p.m.
Prerequisite:
Accounting110, sophomore standing, and enrollment in the College of Business
Administration, or approval of the Department of Accounting. (Important:
Concurrent enrollment in Accounting 110 is not allowed)
Course Objectives:
The main objective of this course is to provide students with a conceptual
understanding of managerial accounting, and with the skills for applying the
knowledge to decision making.
Catalog Description:
Management planning and control; cost concepts and measurement; cost
accounting systems; analysis of cost and volume-profit relationships; standard
costs and variances; and budget preparation.
Required Text:
Managerial Accounting, 10th edition by Ray Garrison and Eric Noreen (Irwin
2002) accompanied by a CD-ROM with interactive tests and video clips.
Optional Text:
Study Guide to accompany the above text.
Teaching Method:
The classes are lecture, discussion, and problem solving oriented. You are
encouraged to ask questions and provide comments as considered appropriate.
You are required to read all assigned material and attempt solving the assigned
homework before the subject is discussed in class. Every student is expected to
participate.
Grading:
Course final grades will be determined based upon the following criteria:
First Examination 120 points
Second Examination 120 points
Final Examination 120 points
Total 360 points
Final grades will be based on a straight 90, 80, 70, 60, scale for an A, B, C, D,
etc. However, the scale may be lowered if deemed necessary.
Homework;
Reading assignments include “Review Problems”. Skip appendices unless
specified. You should complete the written homework assignments in pencil on a
timely basis as described in the course calendar. Written homework solutions will
be available shortly after the assignments are discussed in class.
Exams:
Exams will consist of multiple choice questions. They are to be taken as
scheduled in the course calendar. There will be no make up exam
Attendance:
Regular class attendance is essential and expected. There is a direct correlation
between attendance and success in the course. If you miss a class session due
to sickness or emergency, it is your responsibility to obtain the class notes from a
classmate. You are responsible for everything covered in all class sessions.
Academic Integrity:
In all courses, you are expected to conduct yourselves in a manner that is
consistent with the university standards of academic honesty. Any student who
cheats on an assignment or exam will receive a grade of “E” for the course and
may also be dismissed from the university.
Incomplete:
Incompletes will be granted only in documented cases of undue hardship or
clearly extraordinary circumstances, and according to university policies.
General:
Every effort will be made to adhere to the information and schedule set forth in
this syllabus. Any changes, which are necessitated as the semester progresses,
will be announced on a timely basis. Regular attendance will insure that you are
aware of any modification made.
Accounting 111
COURSE CALENDAER
# Date Day Activity & Assignment (skip Appendices unless
specified)
1 Aug 24 Tu Course introduction
Class: Lecture on Ch. 1 “Why do you need managerial
accounting information in a business environment?
How do business analyst use such information? Do
Ethics Matter?”
After class: Read Ch. 1 and Do E1-1 (The roles of managers
and management accountants, 10 min.), E1-2 (JIT, TQM,
process reengineering, TOC, basic, 10 min.), P1-4
(Preparing an organization chart, basic 30 min.), P1-5
(Ethics and the manager, basic, 20 min.), and P1- 8 (Ethics,
medium, 20 min.)
2 Aug 26 Th Class: Review Ch. 1 homework
After class: Read Ch. 2 “Cost Terms, Concepts and
Classification”, Appendix 2A “Labor Costs”, and Appendix
2B “Cost of Quality”.
3 Aug 31 Tu Class: Lecture on Ch. 2 ”You need to classify costs to
be able to reduce costs and Quality does matter.”
After class: Do E2-1 (Cost terms, basic 15 min.), P2-17
(Cost identification, medium, 30 min.), E2-5 (Appendix 2B,
Classification of Quality Costs) [P2-12] (Cost classification,
basic, 20 min.), P2-19 (Schedule of cost of goods
manufactured; cost behavior, medium, 50 min.), [P2-21]
(Schedule of cost of goods manufactured; cost behavior,
medium, 40 min.), P2-22 (Ethics and the Managers), P2-23
(Analyzing a quality cost report), Case 2-27.
4 Sept 2 Th Class: Review Ch. 2 homework
After class: Read Ch. 3 “System Design: Job-order Costing”
5 Sept 7 Tu Class: Lecture on Ch. 3 “Designing a cost system to
serve you for better pricing decisions!”
After class: Do E3-11 (Applying Overhead in a Service
Company: LE), P3-13 (Straightfo rward journal entries, partial
T-accounts; income statement, basic, 45 min.), [P3-16]
(Cost Flows, Straightforward journal entries; partial T-
accounts; income statement, basic, 45 min.), P3-19 (Job
cost sheets; overhead rates; journal entries, medium, 60
min.)
6 Sept 9 Th Class: Review Ch. # homework
After class: Read Ch. 5 “Cost Behavior: Analysis and Use”
7 Sept 14 Tu Class: Lecture on Ch. 5 “Estimating cost for better
analysis and use!”
After class: Do E5-3 (H-L Method: Predicting Cost), P5-14
(Identifying cost behavior patterns, medium, 20 min.), P5-11
(High-low method; contribution income statement, basic, 30
min.), E5-9 (Contribution versus traditional income
statement, basic, 40 min.), P5-16 (High-low method of cost
analysis, medium, 35 min.), Case 5-23.
8 Sept 16 Th Class: Review Ch. 5 homework
After Class: Prepare for first exam
9 Sept 21 Tu First Examination (covers Chapters 1, 2, 3, & 5 ) In Class
After exam: Read Ch. 6 “Cost –Volume-Profit Relationships”
10 Sept 23 Th Class: Lecture on Ch. 6 “Select target profit and produce
accordingly!”
After class: Do E6-6, P6-10(Basic CVP analysis; graphing,
basic, 60 min.), P6-9 (Basics of CVP analysis; cost
structure, basic, 60 min.), P6-13 (Break-even analysis,
pricing), P6-11 (Sales mix assumptions; break-even
analysis, basic, 35 min.)
11 Sept 28 Tu Class: Review of Ch. 6 homework
Read Ch. 7 “Variable Costing : A Tool for Management”
12 Sept 30 Th Class: Lecture on Ch. 7 “Use an inventory valuation
technique that better assesses the impact of your sales
strategy?”
After class: Do P7-8 (Straightforward comparison of costing
methods, basic, 40 min.), P7-9 (Straightforward variable
costing statements, basic, 25 min.), P7-10 (Comprehensive
Problem) and P7-11 (Preparation and Reconciliation of
Variable Costing Statements.)
13 Oct 5 Tu Class: Review Ch. 7 homework. Read Ch. 9 “Profit
Planning”
14 Oct 7 Th Class: Lecture on Ch. 9 “Master planning with a Master
Budget”
After class: Do P9-14 (Cash budget, basic, 40 min.), and P9-
16 (Master budget preparation, basic, 60 min.)
15 Oct 12 Tu Class: Review Ch. 9 homework.
After class: Read Ch 10 “Standard Cost and Balanced
Scorecard”
16 Oct 14 Th Class: Lecture on Ch. 10 “Manage by Controlling and
Monitoring Costs “After class: Read Appendix 10A
“General Ledger Entries to Record Variances.
17 Oct 19 Tu Class: Discuss Ch. 10 and do P10-11 (Straightforward
variance analysis, basic, 45 min.).
After class: Do P10-10 (Basic variance analysis, basic, 45
min.), P10-18 (Comprehensive variance analysis and
measures of Internal Business Process, 45 min).
18 Oct 21 Th Class: Review Ch. 10 homework. After class prepare for the
second exam.
19 Oct 26 Tu Second Examination (covers Chapters 6, 7, 9, and 10) In
Class. After exam: Read Ch.11 “Flexible Budgets and
Overhead Analysis”
20 Oct 28 Th Class: Lecture on Ch. 11 “Manage by Controlling and
Monitoring Costs II” After class: Do P11-14 (Preparing a
revised overhead performance report, basic, 30 min.) P11-
15 (Standard cost card; materials, labor, and all overhead
variances, basic, 30 min.), P11-22 (Selection of a
denominator, overhead analysis).
21 Nov 2 Tu Class: Review Ch. 11 homework
After class: Read Ch. 12 “Segment Reporting, Profitability
Analysis and Decentralization”.
22 Nov 4 Th Class: Lecture on Ch. 12 “Choose an organizational
structure that maximizes profit! Try decentralization!”
After class: Do P12-16 (Restructuring a segmented
statement, basic, 60 min.), P12-18 (ROI and residual
income, basic, 30 min.)
23 Nov 9 Tu Class: Review Ch. 12 homework
After class: Read Ch. 13 “Relevant Costs for Decision
Making”
24 Nov 11 Th Class: Lecture on Ch. 13 “Make wise decisions by a
proper use of costs? Try relevant costing!”
After class: Read Ch. 13 again and Do P13-19 (relevant cost
analysis questions), P13-12 (Relevant cost ….); P13-17
(Close or Retain).
25 Nov 16 Tu Class: Review Ch. 13 homework
After class: Do P13-13 (Sell or Process further), P13-18
(Make or buy analysis, medium, 45 min.); P13-19 (Make or
buy decision, medium, 45 min.), P13-14 (Shutdown versus
continue-to-operate decision, medium, 30 min.)
26 Nov 18 Th Class: Review Ch 13 homework problems
After class: Read Ch. 14 “Capital Budgeting Decisions,”
including Appendix 14A “The Concept of Present Value” and
do Review Problem 1 on page 693
27 Nov 23 Tu . Class: Lecture on Ch. 14 “Use the proper technique to
evaluate your Capital Budgeting Decisions”
After class: Do P14-16 (Basic net present value analysis,
basic, 20 min.), P14-19 (Basic net present value analysis,
basic, 20 min.), P14-22 (Net present value analysis;
automation decision, basic, 30 min), P14-18 (Simple rate of
return; payback, basic, 30 min.) and P14-21 (Simple rate of
return; payback, internal rate of return, medium, 30 min.).
Nov 25 Th Thanks Giving Holiday
28 Nov 30 Tu Class: Review Ch. 14 homework
29 Dec 2 Th Class: Review Ch. 14 homework / Review Practice Exam
30 Dec 7 Tu Final Examination (covers Chapters 11, 12, 13 and 14)
Time 6:00 – 8:00 p.m. Place: To be announced
Best wishes