Principles of Accounting II - Course Outline | BUS 202, Quizzes of Financial Accounting

Download Principles of Accounting II - Course Outline | BUS 202 and more Quizzes Financial Accounting in PDF only on Docsity! SPRING 2007 COURSE OUTLINE Professor Neilson Office: MH 215 Phone: x2527, Fax: x2502 BUS 202 – Principles of Accounting II E-mail: neilsond@usfca.edu Class Meeting: Sec 2 – TR – 8.30-10.15 a.m. – LM 140 Phone : 422-2527 Class Meeting: Sec 5 – TR 10.30 a.m. – 12.15 p.m. – LM 140 email: neilsond@usfca.edu OFFICE HOURS MW – 11.00 a.m. – 12 noon TR – 5.00 – 6.00 p.m. – and by appointment. REQUIRED TEXT Managerial Accounting Weygandt, Kieso, Kimmel Wiley 3rd edition COURSE GRADING Quiz #1 Thurs Feb 15 250 Points Quiz #2 Thurs Mch 22 250 Points Quiz #3 Thurs Apl 19 250 Points Final Exam Sec 2 – Sat May 12 – 8.00 am 350 Points Sec 5 – Tues May 15 – 12 noon Homework 300 Points TOTAL 1,400 Points COURSE LEARNING OBJECTIVES The learning objectives of this course are to ensure that students a) Will be exposed to conceptual and theoretical material, and b) Will acquire practical managerial accounting skills, as follows: Concepts and theoretical material i) Comprehensive vocabulary of managerial accounting terminology, concepts and definitions. ii) Principles of responsibility accounting, iii) Principles of managerial performance evaluation and review. iv) Principles of internal managerial accounting (especially in relation to segmented organizations) v) Principles of activity based costing and activity based management. vi) Principles of cost-benefit analysis – as related to short-term and long term situations. Practical Skills i) Measure accounting outcomes of activities – (revenue, expense, cost, margins, ratios, etc). ii) Prepare accounting budgets of relevant aspects of financial performance for which managers are responsible. iii) Analyze the results of managerial performance on the basis of various intra- organizational accounting metrics. ADMINISTRATIVE DETAILS A) Make-up Exams: Will only be administered for legitimate health or personal reasons. Arrangements for make-up exams must be made no later than the time and date of the scheduled exam. NO EXCEPTIONS! B) Homework: Will be due at each class meeting. Credit will not be given for late homework, except if approved by instructor for legitimate reasons. A separate homework schedule will be distributed. C) University requirements concerning attendance, withdrawals, and incompletes and consequences of academic dishonesty apply. Please refer to these sections of the University catalog to be sure you are familiar with these procedures. D) Class Participation: All students will be expected to participate actively in class discussions of relevant topics from the assigned readings, classroom illustrative examples and homework assignments. HOMEWORK A set of problems from the textbook will be assigned, to be completed as homework and discussed and submitted at the next class session. Students are encouraged to work in self-organized study groups on the homework, but each student must submit their own separate solution set. SCHEDULE OF CLASS ACTIVITIES DATE CHAPTERS TOPIC Tues Jan 23 1,2 Intro, Job Order Costing Thur Jan 25 2 Job Order Costing Tues Jan 30 2,3 Job Order Costing, Process Costing Thur Feb 1 3 Process Costing Tues Feb 6 4 Activity Based Costing Thur Feb 8 4 Activity Based Costing Tues Feb 13 1, 2, 3, 4 REVIEW Thur Feb 15 QUIZ # 1 Tues Feb 20 5 CVP Analysis Thur Feb 22 5 CVP Analysis Tues Feb 27 6 Incremental Analysis Thur Mch 1 6 Incremental Analysis BASIC CONCEPTS AND TERMINOLOGY  Accounting Elements  Asset – Liability –Owners’ Equity  Revenue - Expense - Gain – Loss - Net Income  Cash Flow  Cost  Classifications of Costs  Function/Resource/Name  Expired // Unexpired  Product // Period  Products : Purchased – Manufactured  Materials – Labor – Overhead  Direct // Indirect  Cost Objects  Cost Drivers  Cost Behavior Patterns  Fixed – Variable – Mixed – Other Pattterns  Total // Unit  Average - Marginal – Specific Unit  Controllable – Management Unit /Level/Center  Decision Relevance  Sunk – Committed - Incremental/Differential – Opportunity  Out – of – Pocket // Implicit  Manufacturing Cost Flow Model  Schedule of Cost of Goods Sold  Schedule of Cost of Gods Manufactured  Work – in - Process Components CHAPTER TWO JOB ORDER COSTING  Purposes of Output Cost Measurement  Income Measurement - (Inventory Measurement0  Pricing Related Decisions  Performance Evaluation  Control and (Re)forecasting  Job Cost Environment  Business Models – Industry Features  Output Characteristics  Cost Components of a “Job”  Direct Materials  Direct Labor  Other Direct Costs  Manufacturing Overheads  Indirect Cost Assignment/Allocation/Absorption  Generic Cost “Allocation” Model  Single / Plant Wide Rate  Cost Driver / Allocation Basis  Cost Driver Criteria  Actual Rates // Predetermined Rates  Criteria for Effective Cost Drivers  Diversity Issues  Multiple, Diverse Activity Centers  Output Diversity  Cost Diversity  Hierarchy of Cost Drivers  Unit of Input, Unit of Out put Level  Batch, Lot, Order, Transaction Level  Product, Customer Level  Facility Level  Activity Based Rates  Calculating the Rates  Using the Rates  Product, Industry Applications  Service Industry Applications  Misuses /limitations OF Activity Based Rates SERVICE AND SUPPORT COSTS JOINT OUTPUT COSTS  Service, Support Activities Centers  Productive, Operating Activity Centers  Direct, Single Step Allocations  Step Down, Sequential Allocations  (Simultaneous Allocations)  Dual Allocations  Variable Costs – Usage, Activity Driven Rates  Fixed Costs – Capacity Driven Rates  Applications  Joint Outputs / Common Costs  Common Processing Costs  Separation / Split Off Point(s)  Intermediate Outputs  (Relative) Intermediate Sales Value  Subsequent, Additional Processing and Costs  End Outputs  Final Revenue  Net Realizable Value  Applications  Choice of Methods  Uses and Misuses of Common Cost Allocations ****************************************************** PRICING DECISIONS  Cost Based Pricing * Cost Plus Pricing  Which “Cost”? -- Which “Plus”?  “Arbitrary Formulas  Target Costing  Determine “Costs” to Satisfy Target Conditions  Kaizen Costing  Cost Reduction Goals< Targets  Continuous Improvement Strategies CHAPTER SIX SHORT RUN INCREMENTAL ANALYSIS  Decision Relevant Revenues, Costs and Expenses  Decision Point  Decision Time Frame  “Ceteris Paribus” = Other Things Being Equal  Short Rune Incremental Profit Goals  Special Sales Opportunities  Outsourcing / Make-or-Buy Alternatives  Sell Now / Process Further Choices  Partial / Temporary Expansions / Contractions  Allocation of Scarce Resource(s)  Composite Situations  Multiple Cost / Expense Drivers  Applications, Applications, Applications CHAPTER TWELVE CAPITAL BUDGETING  Terminology, Concepts  Projects  Project life  Investment Outlay  Terminal Events  Net (Operating) Income  Net Operating Cash Flow  Return on Investment !!!!!!  Cost of Capital !!!!!!!!!!!!!  Decision Rules  Payback Period – Simple, Discounted  Target Return on Investment  Net Present Value (Amount)  Net Present Value (Ratio)  Internal Rate of Return  Modified Internal Rate of Return  Alternative Deprecation Methods CHAPTER ELEVEN STANDARD COSTING  Cost Management, Cost Control  Standard Cost Specifications  Direct Materials Costs  Direct Labor Costs  Input Price Variances  Input Quantity Variances  Uses and Misuses of Cost Variances  Applications, Applications FLEXIBLE BUDGETING OVERHEAD COST ANALYSIS  Flexible Budgeting  Variable Overhead Costs – Single rate  Input Price (Rate) Variance  Input Quantity (Efficiency) Variance  Fixed Overhead Costs – Single Rate  Budget (Spending) Variance  Volume (Denominator) Variance  Activity Based Over head Variances  Applications, Applications CHAPTER TEN RESPONSIBILITY ACCOUNTING PROFIT CENTERS  Decentralization, Segmentation  Responsibility Centers  Responsibility Accounting  Cost Centers ; Profit centers ; Investment Centers  Hierarchical Reports  Controllable, Traceable Measures  Profit Center (Segment ) Reports  “To Allocate or Not to Allocate – That is the Question !!!”  Applications, Applications, Applications STATEMENT OF CASH FLOW  Statement of Cash Flow – Format, Content  Classification of Cash Flows  Operating Cash Flows – Examples  Financing Cash Flows – Examples  Investing Cash flows – Examples  Preparation of Statement of Cash Flow  Operating Cash Flow Working Paper – Indirect Method  Investing and Financing Cash Flows Working Paper  Reconciliation with Cash Balances  Direct Method  Uses of Cash Flow Information  Performance Evaluation  Control  Planning  Free Cash Flow  Cash Flow Management  Applications, Applications CHAPTER FOURTEEN FINANCIAL STATEMENT ANALYSIS  Comparative Analysis of Financial Performance  Horizontal Analysis  Vertical Analysis  Bails of Comparison and Evaluation  Liquidity Performance  Operating Performance  Solvency Performance  Market Performance  Quality of Earnings  Applications, Applications