R.C. (Bob) Nichols, CMA [email protected] 604-987-1423 MA1 MA2.

R.C. (Bob) Nichols, CMA

[email protected]

MA1MA2

MA 1

• Text: “Managerial Accounting – Concepts for Planning, Control, Decision-Making”

• Garrison/Noreen/Chesley/Carroll

• 4th Canadian Edition

• McGraw-Hill Ryerson

Course Materials Provided

• Text

• Assignment Marker Kit

• Disk with text – review questions for students

• CD ROM

• Publisher’s “Web Site”

CD ROM

1) Lesson notes:

• Objectives of lesson

• Assigned readings

• Summary of readings

• Appendix to readings - further discussion of topics

CD ROM

2) Power Point Presentations

3) Templates (Excel) for sample problems with solutions

4) Review problems (from text) with solutions

5) Practice Exam with solutions

6) Prior Exams (web)

Look at Samples of:

• Lesson notes/Appendixes

• Power Point presentations

• Review problems

• Practice exam

• Prior years’ exams

Web Site

• www.mcgrawhill.ca/college/garrison5/

• Password – available from publisher (on-line)

1) Student resources

2) Instructor resources

1) Student Resources:

a) Plant Tours

b) Spreadsheet templates

c) Power Point slides

d) Errata

e) Glossary

f) Study aids

f) Study Aids:

• Key terms & searchable glossary

• Chapter learning objectives

• Chapter summaries

• On-line quizzes

• Internet and group exercises

• Plant tour discussion questions

2) Instructor Center:

• Downloadable supplements:

– Solutions manual

– Resource manual

– Power Point slides

Student Expectations:

1) What the students have

2) What the students want/need

1) What the students have:

• Lesson notes

• Text

• Assignments marked

• Review questions (true/false, multiple choice)

• Lesson objectives

• Review problems/solutions

1) What the students have:

(cont’d)….

• Practice exam/solutions

• Prior years’ exams/solutions

• Power Point presentations of major concepts

• Templates (excel) for sample problems/solutions

2) What the students want/need:

• Areas of student difficulties:

– Alternative explanations (from text, etc.)

– The “why’s” not just the “how’s”

– “Real-life” examples

– Problems/solutions to illustrate

– Alternative types of problems

– Practice, practice, practice!!!!

2) What the students want/need:

Cont’d….

• Exam writing skills:

– Problem analysis

– Time allocation

– Multiple choice

– True/False

– Etc.

2) What the students want/need:

• Alternative learning methods:

– Reading/Writing/Seeing

– Applying the concepts

– Group discussion

– Doing:

• Doing it wrong

• Doing it right

What we need to do:

Provide opportunities:

• Read/write/see

• “Interactive Learning”

– Discussion of the issues

• For students to try to do it

– Learn from their mistakes

– Improve their skills

Instruction Strategies:

1) Lectures:

• Use of “lecture notes”

• Apply the concepts

– “real-life” examples

– Problem solving

• Encourage discussion/questions

What we need to do:

1) Seek out alternative methods:

– Small group work

– Videos – “Plant Tours”

– On-line review & self-testing, etc.

2) Seek out alternative resources:

– Publishers, business, etc.

3) Share our resources/ideas:

MA1 – Course Content:

1) Lesson 1• Basic concepts of management accounting2) Lesson 2• Job-order costing – excel 3) Lesson 3• Process costing

– Weighted average/FIFO– Shrinkage/spoilage– Appendix

MA1 – Course Content:

4) Lesson 4• Cost behaviour and cost-volume-profit analysis• Sensitivity analysis5) Lesson 5• Activity-based costing and service department

costing • Cost allocations• Appendixes (3)

MA1 – Course Content:

6) Lesson 6• Absorption and variable costing and

budgeting• Appendixes (4)7) Lesson 7• Standard costs for materials, labour, and

variable overhead• Appendixes (3)

MA1 – Course Content:

8) Lesson 8• Flexible budgets and

decentralization • ROI/RI9) Lesson 9• Relevant costs for decision making and

inventory management• Appendix

MA1 – Course Content:

10)Lesson 10• Pricing • trends in management accounting• Appendixes (2)

MA2 Course Coverage:

I Short-run Decisions

II Complications to Short-run Decisions

III Capital Budgeting

IV Contemporary Approaches to Product Costing

MA2 Course Coverage:

V Activity-Based Management 

VI Agency Theory

VII Transfer Pricing

VIII Ethical Considerations

I Short-run Decisions

• Relevant informationRelevant information• Special order decisionSpecial order decision• Outsourcing (make or buy)Outsourcing (make or buy)• Adding/dropping a product lineAdding/dropping a product line• Joint products – sell or process Joint products – sell or process

further?further?• Limited resource decisionsLimited resource decisions

II Complications to Short-run Decisions

• Valuation of inventoryValuation of inventory• Effects of overhead allocationsEffects of overhead allocations• Capacity costsCapacity costs

III Capital Budgeting

• Payback methodPayback method• Accounting Rate of ReturnAccounting Rate of Return• Discounted Cash Flow methods:Discounted Cash Flow methods:

– Net Present ValueNet Present Value– Internal Rate of ReturnInternal Rate of Return

• Performance Evaluation ConflictsPerformance Evaluation Conflicts

IV Contemporary Approaches to Product Costing

• Total-Life Cycle product costingTotal-Life Cycle product costing• Target CostingTarget Costing• Kaizen CostingKaizen Costing• Cost of QualityCost of Quality• BenchmarkingBenchmarking

V Activity-Based Management 

• Purpose of ABMPurpose of ABM• Steps in ABMSteps in ABM• Evaluation of ABMEvaluation of ABM• ABM and other management ABM and other management

techniques:techniques:– TQMTQM– Process re-engineeringProcess re-engineering– Benchmarking, etc.Benchmarking, etc.

VI Agency Theory

• Introduction to agency theoryIntroduction to agency theory• Basic building blocksBasic building blocks• Executive compensation contractsExecutive compensation contracts• Participative budgetingParticipative budgeting• Internal labour marketsInternal labour markets• Agency and ABMAgency and ABM• Agency and Strategic PlanningAgency and Strategic Planning

VII Transfer Pricing

• Responsibility accountingResponsibility accounting• Economic value addedEconomic value added• Transfer pricingTransfer pricing

VIII Ethical Considerations

• Trust, ethical behaviour and the Trust, ethical behaviour and the accountantaccountant

• Markets and the role of ethicsMarkets and the role of ethics• Creation and enforcement of Creation and enforcement of

behavioural normsbehavioural norms

Sample Lesson:

Lesson 3

1) Lesson notes

2) Quizzes

3) Review problems