R C Bob Nichols CMA rnichols bcit ca 604

R. C. (Bob) Nichols, CMA rnichols@bcit. ca 604 -987 -1423 MA 1 MA 2

MA 1 • Text: “Managerial Accounting – Concepts for Planning, Control, Decision-Making” • Garrison/Noreen/Chesley/Carroll • 4 th Canadian Edition • Mc. Graw-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/garrison 5/ • 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!!!!

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:

MA 1 – Course Content: 1) Lesson 1 • Basic concepts of management accounting 2) Lesson 2 • Job-order costing – excel 3) Lesson 3 • Process costing – Weighted average/FIFO – Shrinkage/spoilage

MA 1 – Course Content: 4) Lesson 4 • Cost behaviour and cost-volumeprofit analysis • Sensitivity analysis 5) Lesson 5 • Activity-based costing and service department costing • Cost allocations • Appendixes (3)

MA 1 – 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)

MA 1 – Course Content: 8) Lesson 8 • Flexible budgets and decentralization • ROI/RI 9) Lesson 9 • Relevant costs for decision making and inventory management • Appendix

MA 1 – Course Content: 10) Lesson 10 • Pricing • trends in management accounting • Appendixes (2)

MA 2 Course Coverage: I Short-run Decisions II Complications to Short-run Decisions III Capital Budgeting IV Contemporary Approaches to Product Costing

MA 2 Course Coverage: V Activity-Based Management VI Agency Theory VII Transfer Pricing VIII Ethical Considerations

I Short-run Decisions • Relevant information • Special order decision • Outsourcing (make or buy) • Adding/dropping a product line • Joint products – sell or process further? • Limited resource decisions

II Complications to Shortrun Decisions • Valuation of inventory • Effects of overhead allocations • Capacity costs

III Capital Budgeting • Payback method • Accounting Rate of Return • Discounted Cash Flow methods: – Net Present Value – Internal Rate of Return • Performance Evaluation Conflicts

IV Contemporary Approaches to Product Costing • Total-Life Cycle product costing • Target Costing • Kaizen Costing • Cost of Quality • Benchmarking

V Activity-Based Management • Purpose of ABM • Steps in ABM • Evaluation of ABM • ABM and other management techniques: – TQM – Process re-engineering – Benchmarking, etc.

VI Agency Theory • • Introduction to agency theory Basic building blocks Executive compensation contracts Participative budgeting Internal labour markets Agency and ABM Agency and Strategic Planning

VII Transfer Pricing • Responsibility accounting • Economic value added • Transfer pricing

VIII Ethical Considerations • Trust, ethical behaviour and the accountant • Markets and the role of ethics • Creation and enforcement of behavioural norms

Sample Lesson: Lesson 3 1) Lesson notes 2) Quizzes 3) Review problems