Managerial Accounting Fall 2008
MBA 611 Dr. Rahmat Tavallali
108 BBCC Bldg.
Phone: 330/ 490-7037
Office Hours: Monday, Wednesday and Friday: 10:30-11:30 email: email@example.com
Tuesday and Thursday: 11:30-12:30 p.m.
Monday: 5:00 – 6:00 p.m. in September and October for MBA students only
Study of accounting from viewpoint of the manager who is interested in uses of accounting
information, as contrasted with the viewpoint of the accountant who is responsible for collecting and
reporting such information. This course emphasis on information use in financial statements and
funds control statements, budgeting, planning capital acquisitions, and various cost accounting
systems for decision making.
Upon completion of this course, the student will be able to:
. Explain how cost management helps organizations meet their strategic goals by managing costs
rather than measuring costs.
. Prepare an income statement and a schedule of cost of goods manufactured and sold.
. Distinguish between the costs of resources used and those of resources supplied.
. Reconcile income under absorption, variable, and throughput costing.
. Assign costs to production jobs or projects using different costing systems.
. Assign activity costs to goods and services.
. Prepare customer profitability analysis and reports.
. Measure and analyze the dimensions of quality.
. Build a basic cost-volume-profit (CVP) financial model.
. Manage scarce resources and apply the Theory of Constraints.
. Use a cost-benefit approach to common business decisions.
This course is designed to introduce management functions in an organization and show students what
technical information managers require to carry out their responsibilities. In order to provide these
technical information for managers, students must know:
Product Costing System
Cost Allocation and Evaluation
Fixed and Variable Costs
Standard Cost System
Planning the Master Budget
Budgeting and Financial Planning
MATERIALS OF INSTRUCTION
Managerial Accounting by Don R. Hansen and Maryanne M. Mowen, 8th Edition. Thomson/South
Western Publishing Co. 2007.
NOTES REGARDING ASSIGNMENTS AND WORKLOAD
This course is primary skill course. Students are expected to develop the skill and ability
necessary to develop, plan, allocate resources, budget, lead, implement, and evaluate their products
and/or services costing system. I understand that some of you as MBA students who are required to
take this managerial accounting course are not accounting major. It is strongly suggested that these
students regularly work outside class and to take a great deal of responsibility for their own learning
outcomes to gain a competitive advantage. The emphasis is not on the concepts themselves, but rather
on the process, details and techniques used when dealing with typical problems that arise in the course
of managerial accounting. This course will meet only once a week, for four hours at a time. This
highly accelerated pace requires students to do a minimum of 12 hours per week of study,
assignments, and case studies. Since this course is cumulative in nature, each chapter must be covered
thoroughly. It is imperative that all students make a strong commitment to develop a comprehensive
understanding of these chapters. Lectures, demonstrations of the problems and case analysis are the
main keys of the learning process.
1. Each student must complete all assignments on time and in a good form in manner consistent
with commonly accepted business standards.
2. Each student will take two tests and a comprehensive final exam.
3. Each student will prepare at least five case studies individually.
• CASE METHOD: HOW TO ANALYZE THE CASES:
A comprehensive and thorough case analysis should be prepared in written form with supporting
materials as needed and for class presentation. You will be evaluated based on both on what you say
and on how you say it. Each case analysis should comprise several major parts, including:
a. A brief summary and introduction to the purpose of the case.
b. A comprehensive analysis of the case as is explained below.
c. A section providing conclusions and recommendations.
The cases provided for this course are examples of managerial accounting in action that promote
practical application and represent issues and problems from an integrative management view.
With the case method, the process of arriving at an answer is more important than the answer itself. It
is anticipated that by working through cases the student will develop an understanding of the process
of reaching decision and be able to convincingly support and communicate these decisions to others.
Instead of sitting back and reacting to the comments made by me as an instructor, a student in
analyzing cases is asked to make decisions typically with incomplete information and in a limited time
period, which is usually the situations faced by most managers.
There are no ideal solutions to any of these cases used in this class. Searching for the perfect answer
will be futile. Instead, the student should learn to critically and thoroughly think through the issues,
problems, facts, and other information presented in the cases. Critical thinking is required to make
better decisions. Thorough thinking is needed so that decisions reached can be communicated and
intelligently discussed in classroom discussions. Classroom discussions about the cases should clearly
illustrate the thinking processes and supported with references from the textbook, personal experiences
and other reading materials used by a student.
The preparation for classroom discussion of the cases can follow a set pattern. One suggested pattern
would be to:
Read the case rather quickly to get a feel for what is involved.
Reread the case and sort out the assumptions, hunches, and facts. Since all the cases are rather
incomplete, the student will need to make plausible assumptions about the situation. List them
and be able to support the plausibility of your assumptions. These assumptions will enable you
to “fill in the blank” that exist in the cases. Remember that decisions in real world are
generally made with incomplete information and some uncertainty and risk.
Identify the major problems and sub-problems which must be considered in the case.
List the problems in order of importance or priority. That is, what problems have to be solved
Develop a list of alternative courses of action that would minimize or eliminate the problems.
In developing the alternative courses of action, outline the constraints e.g., resources, schedule,
technical, physical, people, skills, equipment and materials) which will limit success.
Finally, select the course of action that is best for the problems identified in step 3. Show how
the course of action would work and be able to discuss why it would be the most successful
alternative to solve the problem(s).
Two tests 40%
Final exam 30%
Weekly Case Studies 30%
A letter grade will be assigned to the student based on his/her performance and based on the total
percentages of grading criteria earned as follows.
A = 96 - 100%
A- = 92 - 95%
B+ = 88 - 91%
B = 84 - 87%
Please note that a course with a grade “B-“ or below does not count toward
fulfillment of degree requirements and may be repeated (subject to the
“Repetition of Course “ policy).
B- = 80 - 83%
C+ = 76 - 79%
C = 72 - 75%
C- = 69 - 71%
D+ = 66 - 68%
D = 63 - 65%
D- = 60 - 62%
F = Below 60%
Assignment/test Make-up Policy:
Due to skills nature of this course, a great deal of information will be missed by not attending even
one class. Please make every effort to attend all classes. If you know in advance that you will miss a
class please inform me as soon as possible. However, you are responsible to have all work completed
Please be advised that the MAKE-UP assignments and tests will be given with an advanced
notice and arrangement by the instructor and with ONE LETTER GRADE BELOW and ONLY
will be granted in those conditions beyond the student’s control.
THE PURPOSE OF GRADUATE LEARNING:
Graduate learning, teaching and scholarship differ from undergraduate learning, teaching, and
scholarship in both intensity and kind. Graduate programs share the foundations of the University’s
mission, charisma, and curriculum beliefs but call the student and faculty to a task that has different
goals than an undergraduate program. Graduate curricula have single mindedness in focus – an in-
depth study of a field – and the goal of leading students to independence in the acquisition and
promulgation of knowledge and practice.
Specialization, depth of knowledge and independent application mark graduate learning. A paramount
goal of graduate programs is to empower students to become productive members of a profession or
field of study able to further the achievements of producing knowledge and improving practice.
I. MBA PROGRAM OUTCOMES:
A graduate of the MBA program should be able to:
• demonstrate knowledge in the functional areas of business.
• demonstrate competency in a specific area of business.
• apply theory to practice.
• demonstrate critical thinking and quantitative reasoning skills.
• demonstrate effective communication skills: written, oral, and interpersonal.
• demonstrate applied skills in commonly used business and information technologies.
• demonstrate an effectiveness orientation and the capacity to interact with diverse
The Division of Business, Economics and Communication subscribes to the academic integrity policy
stated in the Walsh University Undergraduate Catalog.
“Students are responsible for their academic work. Plagiarism and other forms of cheating or
dishonesty may result in a failing test or course grade, or suspension. A classroom paper of any
type must be the work of the student submitting it. The student is responsible for paraphrasing
and attributing any material taken from other sources, including books, magazines, newspaper,
electronic media, private letters, interviews, other individual’s work, etc. This means that the
source must be identified through footnotes, quotation marks and other forms of documentation.
Copying sources without credit, through quotation marks, footnotes, or other documentation is
plagiarism, a major form of cheating.”
The following course outline is VERY tentative and subject to change. It is responsibility of the
student to be aware of any announced departure from this outline.
Session Chapter/s Topic/s
1 1 and 2 Management Accounting Concepts
2 3 and 4 Activity Cost Behavior and
3 6 Job-order and Process Costing
4 First Test (chapters 1, 2, 3, 4, and 6)
5 Saturday Workshop (September 20, 2008)
6 8 and 9 Budgeting for Planning and Control
7 11 and 12 Cost-Volume-Profit Analysis
Tactical Decision Making
8 14 Inventory Management
Test Two (Chapters 8, 9, 11, and 12)
9 (Saturday October 11th, 2008)
15 and 7 Quality Costs and Productivity
Support-Dept. Cost Allocation
10 (Monday October 13th, 2008) Final Exam