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					Dr. Mike Kinney

March 20, 2009

Topic: Concepts and Applications of Cost Accumulation Systems

Time Required: 6.5 hours

Preparation Readings:
Harvard Materials:
      Introduction to Cost-Accounting Systems (10/18/2004)

Accounting: Texts & Cases, 12th Edition:
     Chapters: 15, 16, 17

Objectives:
1.    Identify alternative product (service) costing systems
2.    Differentiate between “product costs” and other costs
3.    Calculate basic product cost flows
4.    Understand general strategies for managing product/service costs
5.    Relate product costs to product life cycle
6.    Identify factors creating the need for activity-based costing (ABC) systems
      and the significant differences between traditional and ABC systems
7.    Understand uses of product/service cost information in supporting
      management decision making

Key Content of Module:
1.    Identifying the components of product/service cost
2.    Recognizing the appropriate product costing system for a specific
      manufacturing/service context
3.    Product/service cost flows and supporting documents
4.    Product cost flows and cost behaviors a (absorption versus variable costing)
5.    Activity-based product costing (multi-stage cost allocation systems)
6.    Roles of product costing information in decision making
7.    Recognizing the need to consider different costs for different purposes
Cases:      Case 16-1, Hospital Supply, Inc.
            Case 16-2 Prestige Telephone Company
            Case 17-1 Delaney Motors
            Case 17-2 Lipman Bottle Company (take-home, graded, individual
            assignment)

Problems: 17-1, 17-2, 17-4

Additional materials: Questions for each case are available for download from:
      http://acct.tamu.edu/kinney/emba.html

      The files are password protected, and the password is “bonfire”


Dr. Mike Kinney
Phone: 979-862-2078
Fax: 979-845-0028
Email: mkinney@mays.tamu.edu
Dr. Mike Kinney

April 4, 2009

Topic: Managing Customer and Product Profitability

Time Required: 6.5 hours

Preparation Readings:
Harvard Materials:
      Introduction to Activity-Based Costing (07/05/01)
      Control Tomorrow’s Costs Through Today’s Designs (HBR, Jan/Feb 1996)
      Customer Profitability and Lifetime Value (HBS, 9-503-019)
      Achieving Full Cycle Cost Management (MITSloan Management Review, Fall
      2004)

Accounting: Texts & Cases, 12th Edition:
     Chapter 18

Objectives:
1.    Understand how activity-based costing information is used to manage
      pricing and profitability of products/services
2.    Relate cost management approaches to product life cycles
3.    Understand approaches to measuring customer profitability
4.    Understand approaches and issues involved with measuring product
      profitability

Key Content of Module:
1.    Relating costs to product life cycle
2.    Activity-based management
3.    Measuring customer profitability
4.    Coping with common costs in measuring product/service profitability

Cases:      Case 18-5, Dakota Office Products
            Kanthal (A) (9-190-002)
            Slots, Tables and All That Jazz: Managing Customer Profitability at
            The MGM Grand Hotel (9-106-029) (take-home, graded, group
            assignment)
Problem: 18-5

Additional materials: Questions for each case are available for download from:

      http://acct.tamu.edu/kinney/emba.html
      The files are password protected, and the password is “bonfire”



Dr. Mike Kinney
Phone: 979-862-2078
Fax: 979-845-0028
Email: mkinney@mays.tamu.edu
Dr. Mike Kinney

April 17, 2009

Topic: Organizational architecture, Management Control, & Intra-firm
Transactions

Time Required: 6.5 hours

Preparation Readings:
Harvard Materials
      Mastering the Management System (R0801D, January 2008)
      Introduction to Responsibility Accounting Systems (9-105-009)

Accounting: Texts & Cases, 12th Edition:
     Chapters: 22, 23


Objectives:
1.    Identify elements of management control systems and their uses in
      influencing organization performance.
2.    Understand how a responsibility accounting systems helps align managerial
      and shareholder interests in decentralized organizations
3.    Identify alternative responsibility centers and appropriate performance
      metrics
4.    Understand why and how costs of support departments are allocated to
      operating departments
5.    Understand distinctions between cost allocation and transfer pricing
6.    Identify alternative transfer pricing and cost allocation schemes

Key Content of Module:
1.    Management control systems
2.    Responsibility accounting
3.    Service department cost allocation
4.    Transfer pricing for service and operating departments
5.    Effects of performance measurement system on managerial behavior

Cases:      Birch Paper Company (9-158-001)
            Case 23-5, Berkshire Industries PLC
            Case 22-2, Shuman Automobiles (take-home, graded individual case)



Problems: Chapter 22: 2, 3; Chapter 23: 4

Additional materials: Questions for each case are available for download from:

      http://acct.tamu.edu/kinney/emba.html
      The files are password protected, and the password is “bonfire”
Dr. Mike Kinney
Phone: 979-862-2078
Fax: 979-845-0028
Email: mkinney@mays.tamu.edu
Dr. Mike Kinney

April 18, 2009

Topic: Flexible Budgeting, Standard Costing and Variance Analysis

Time Required: 6.5 hours

Preparation Readings:
Harvard Materials
      Variance Analysis and Flexible Budgeting (9-101-039)

Accounting: Texts & Cases, 12th Edition:
     Chapters: 19, 20, 21

Objectives:
1.   Understanding techniques to estimate and predict costs including statistical
     methods
2.    Understand and apply flexible budgeting techniques
3.    Calculate standard costs of products/services.
4.    Calculate and explain variances from standard costs.
5.    Use variance information to improve cost efficiency and assign
      responsibility for cost performance.

Key Content of Module:
1.    Flexible budgeting techniques
2.    Standard costing
3.    Variance analysis

Cases:      Case 20-1, Sun Air Boat Builders, Inc.
            Case 21-3, Woodside Products, Inc.
            Peoria Engine Plant (A): Abridged (9-197-099)
            Musimundo (9-105-036) (take-home, graded group case)

Problems: Chapter 19: 1; Chapter 20: 1, 2; Chapter 21: 1, 2

Additional materials: Questions for each case are available for download from:
      http://acct.tamu.edu/kinney/emba.html

      The files are password protected, and the password is “bonfire”
Dr. Mike Kinney
Phone: 979-862-2078
Fax: 979-845-0028
Email: mkinney@mays.tamu.edu