This course is concerned with how Cost accounting information is used internally within a firm. The focus of this course is on understanding how such information is used in (a) planning and evaluation, (b) decision support, and (c) cost management and control. We will begin each topic by reviewing the basic accounting procedures, and proceed by analyzing how such procedures can be usefully employed by management. Much more emphasis will be placed on the use of information than on its preparation.
Textbook: Introduction to Management Accounting, Chapters 1-14, 15th edition by Horngren, Sundem, Stratton, Schatzberg and Burgstahler (Publisher: Prentice Hall)
Textpac: Made available via study.net
• Take-home Group Assignments - 20%
• In-class Quizzes (closed book and notes) - 30%
• In-class Mid-term examination (closed book and notes) - 25% • Final examination (closed book and notes) - 25%
The notes and reading material for this class borrow from Anil Arya, Ron Dye and Michael Maher. Many readings, including the ones pertaining to compensation design and reciprocal cost allocation, were prepared by Anil Arya for his students at Ohio State University. Several of the nice illustrations on Cost Allocation were written by Ron Dye for his students at Northwestern University. Michael Maher’s inputs, especially on Activity Based Costing, have contributed greatly in developing the material for this course. I gratefully acknowledge my colleagues for their valuable inputs.
Introduction / Opportunity costs
Case: Denver Sporting Goods
Quiz 1: Opportunity costs
Case: Roseville Brew Pub
Decision Making – Introduction
Case: It aint just about peanuts
Case: Liquid Chemicals*
Quiz 2 : CVP Analysis
Decision Making contd...
Case: Jones Ironworks*
Mid Term Exam
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