Lubin School of Business, Department of Accounting

Managerial Accounting - ACC 204

Course Section Number __70345_________ Class Time ___TR 2:25 – 4:25 p.m. _____

Instructor Name: Dr. Matthew Reidenbach

Email Address: mreidenbach@pace.edu

Office Hours & Location: T 1-2 p.m., W 2-5 p.m., R 1-2 p.m., or by appointment

Course Objectives
Managerial accounting course aims to develop knowledge and skills that will help turning data into
information which leads to better decisions, and hence, to the improved profitability and efficiency of a
business enterprise. These knowledge and skills are essential for any business manager who create and
manage successful businesses. After successfully completing the course, the students are expected to:
1). Understanding the role of Managerial Accounting in business management and the standards of
ethical conduct for anyone engages in Managerial Accounting work;
2). Be comfortable evaluating the costs and benefits of day-to-day business decisions and estimating
their impact on company’s bottom line;
3). Understand clearly the role of overhead and the overhead allocation mechanisms in measuring the
costs of products and services; Understand clearly the cause and remedy for cost miscalculation
or distortion;
4). Be able to prepare budgets and analyze/interpret variances from the budgets; and
5). Understand the role of incentive mechanisms in coordinating activities within a multi-division
firm.

The course objectives are derived from the missions of the Lubin School of Business and the Department
of Accounting. Lubin’s mission is to educate students in a personalized academic environment for
success in business by applying contemporary theory to professional practice. Echoing the School's
mission, the mission of the Department of Accounting related to students education are (1) Preparing
students for successful general business careers in a global economy; (2) Preparing students for successful
careers within the broad field of accounting; (3) Developing students' analytical skills; and (4) Providing
the intellectual foundation for personal and professional growth.

The overall goal is to continue the tradition of accountancy at the Pace University both in the external
auditing context and as managerial accountants who help to create and run successful businesses.

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Course Materials
Required: Managerial Accounting by Garrison-Noreen-Brewer, 14th Edition (Chicago, IL: McGraw-
Hill Irwin).

 Physical textbook option: Pace customized edition includes McGraw-Hill ConnectPlus

registration code. ISBN number for this bundled package is ISBN 9780077609245. The
package is available from the Pace Bookstore or from the publisher’s direct purchase line
at: http://shop.mcgraw-hill.com/mhshop/productDetails?isbn=0077609247
 E-book option: If you prefer to purchase an electronic copy of the textbook, you may do
so through the Connect course website:
http://connect.mcgraw-hill.com/class/m_reidenbach_tr_225-425_pm
 Rental option: If you prefer to rent an electronic copy of the textbook, you may do so
through the CourseSmart website: http://www.coursesmart.com/managerial-accounting-
14th-edition/garrison-ray-noreen-eric-brewer-peter/dp/0077317866

Other Materials: Lecture notes, cases, and quizzes downloadable from Blackboard.
On-line Learning Center: http://www.mhhe.com/garrison14e

Examinations and Course Assessments

Assessments
Weights to Determine Grade

Homework 15 %

Group project (Assigned after chp. 10) 15 %

Quizzes (Open-book, online through Connect) 20 %

Midterm Exam (Closed-book, in-class exam) 20 %

Final exam (Closed-book, in-class exam) 30 %

Total 100 %

Grading Policies
 Letter grades for the course will be awarded according to the University’s standard grading
guidelines for undergraduate students (http://pace.edu/academic-catalogs/undergraduate/general-
information-2/academic-policies-and-general-regulations) which are summarized below:

Course Grade Descriptive Equivalent Percentage Range

A, A- Excellent 90–100%
B+, B, B- Good 80–89%
C+, C, C- Satisfactory 70–79%
D, D+; Passing 60–69%
F Failing 0–59%

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  The weights in the “Course Assessment” above are identical for everyone. It is not possible to
make up for poor performance by doing extra work.
 While I typically use the following cutoffs for grading, I retain the right to modify the grading
distribution in students’ favor at the end of the course.
 Plus grade: 7 and above (e.g. 87=B+, 77=C+, 67=D+)
 Minus grade: 3 and below (e.g. 93=A-, 83=B-, 73=C-)\

Exam Makeup and Deferrals

 Deferral of the final exam is possible only if a student have compelling reasons and acceptable
written evidence. Once my approval is obtained, university policy requires a deferral final exam
be administered at the Academic Test Center. Approval form must be filed before exam date with
the Student Account and Registrar Services. A fee of $30 may apply.
 If a student is unable to take the midterm exam, there must be a compelling reason that
corresponds with acceptable written evidence. Once my approval is obtained, a student may
arrange with me to take the exam at a mutually agreeable time.

Homework Policies
 Your grade for homework problems will depend upon the successful completion of the problems.
This means the homework problem must be completed correctly in order to receive credit for the
homework. I will only use your best score on each chapter; you may attempt the problems
multiple times as necessary. The grading scale is as follows:

Connect Problem Grade Homework Grade Earned

> 85% 100%
otherwise Actual % earned

 Students having difficulty with the course material and concepts are urged to attempt additional,
self-assigned practice problems to reinforce the chapter concepts. Additional assignments can be
performed, if necessary. The student is in the best position to determine the amount of work
needed to successfully understand course concepts.

Quizzes
 During the term, there will be six quizzes on Connect to help you prepare for the exams. Quizzes
may be taken during a four-day time frame beginning after class on Thursday (due at 11:59 pm
on Monday nights). Quizzes must be completed in one attempt within 50 minutes of your start
time. Your final average of 5 quizzes will determine your final grade (your lowest quiz score will
be dropped). The following schedule will be used for quizzes:

Assignment Topic
Quiz #1 Chapters 1-2
Quiz #2 Chapter 5
Quiz #3 Chapter 3
Quiz #4 Chapters 8-9
Quiz #5 Chapter 10
Quiz #6 Chapter 6

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Academic Honesty
 Students are expected to bear individual responsibility for their work and to uphold the ideals of
academic integrity. Cheating, forgery, plagiarism and other dishonest acts undermine the school’s
educational mission and the student’s personal intellectual growth. Any student who attempts to
compromise the academic process will be sanctioned.
 Any form of cheating on exams will be reported to the Dean’s Office and will result in failure in
the course and possible suspension from the school.

Other Advice
 Homework and quiz problems are designed for students to practice which is an important part of
learning process. Before the instructor reviews these problems in class, it is your responsibility to
try hard in order to solve these problems independently. Please do not email the instructor
requesting solutions to homework and quiz questions before their due dates. These problems will
be thoroughly reviewed in class.
 This will be a challenging course for many of you. I strongly advise you to attend every class,
read the assigned chapter both before and after each lecture.
 Although the solutions to the homework problems will be available through Connect after the due
date, you should work diligently through each problem. Do not be misled into thinking that,
because you understand the solution, you have mastered the material.
 If you believe that you won’t be able to pass the course and want to withdraw from class, you
should pay attention to the deadline for withdrawing from a class without academic penalty.
Check with the academic calendar for the deadline.
 Blackboard will be the primary method of communication outside the classroom and office hours.
It is student’s responsibility to check the Blackboard site regularly.

Rules of Professional Conduct

The Lubin School of Business prepares students for careers as business professionals. As part of that
preparation, we expect all students to behave as a professional throughout studies at the school.
Following is a list of the specific rules of conduct that I expect students to observe in this course.
 Please do not talk to others, eat, put feet up on seats or table, comb hair, put on makeup, loudly
chew gum, or engage in any other non-professional conduct during the class periods. Students
who persist in disrupting the learning environment will be asked to leave the class.
 Students are expected to come to every class, to arrive on time, and to stay through the entire
class. If you miss a class, or miss part of class due to late arrival or early departure, it is your
responsibility to find out what you may have missed from a fellow student. I will not respond to
emails requesting such information because of absence, late arrival or early departure.

E-Mail Etiquette
 E-mail should be used for questions that require short responses. Questions for concepts and
theories usually require long explanations. Textbook, lectures, and/or a face-to-face discussion
can do a better job than what instructor can do in an email. If you have difficulty understanding
the book, you would be better served by speaking with instructor before or after class or visit/call
instructor in office during office hours.

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  Please do not send email requesting solutions and/or a full explanation of how to solve
homework/quiz questions before their due dates. These problems are designed for you to
practice which is an important part of the learning process. It is your responsibility to invest your
effort and apply what you learned to solve these problems on your own. These problems will be
reviewed in class and solutions will be offered. For remaining questions, you should speak to me
before or after class or in my office during office hours.
 Students must include their full name and section number on any e-mails and attachments. I may
not be able to reply to your message without this basic information.
 Students must also write in the subject area a short description of e-mail (e.g., ACC204 chp. 2
homework question).
 Do not use the e-mail list on Blackboard for any purpose unrelated to this course.
 E-mails in the course are a form of business communication. I expect students to compose e-
mails with the same attention to correct grammar and syntax, politeness and professional tone that
apply to all forms of business correspondence.

Tutorial Services
Pace Tutoring Center, located on the 2nd floor, 41 Park Row, offers free tutoring to all Pace University
students. No appointment is necessary to use the service, but students should check the schedules posted
in the center or call 212-346-1329 for any changes. Along with questions, students should come prepared
with course materials. Students are advised to engage in adequate self-study before using this service in
order to derive fuller value from contact with the tutors.

Disability Accommodation
The University's commitment to equal educational opportunities for students with disabilities includes
providing reasonable accommodations for the needs of students with disabilities. To request a reasonable
accommodation for a qualified disability, a student with a disability must self-identify and register with
the Office of Disability Services for his or her campus. No one, including faculty, is authorized to
evaluate the need for or grant a request for an accommodation except the Office of Disability Services.
Moreover, no one, including faculty, is authorized to contact the Office of Disability Services on behalf of
a student. For further information, please see Resources for Students with Disabilities at
http://www.pace.edu/counseling-center/resources-students-disabilities.

The NYC Campus Counseling Center is located at 156 William Street, 8th Floor, and their phone number
is (212)-346-1526.

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Web-based Homework Manager – McGraw-Hill/Connect
This section of Managerial Accounting requires students to utilize the Connect system. This is a web-
based homework management system that enables students completing homework online, automatically
grades homework, offers instant feedback, and provides hints and other resources to enhance students’
learning experience. A feature that is particularly helpful to students is that it breaks a large problem into
smaller steps and provides guidance to students working through each step.

The access code to McGraw-Hill/Connect is included in the Pace customized edition textbook. If you
bought a book without the registration code, you can purchase a registration key online separately using
the physical textbook instructions below.

Follow the steps below to register when purchasing a physical textbook:

1. Open the Connect page at http://connect.mcgraw-hill.com/class/m_reidenbach_tr_225-

425_pm and click on "Register Now" button.
2. Enter the 20-digit code that comes with your Pace customized edition of the textbook. The code is
case sensitive. Enter the codes exactly as shown on your card. If you do not have a code, you can
purchase a code online by clicking on “How to Buy Access Online” link.
3. Fill out the registration form that appears and click the "O.K." button. You should purchase
“Connect” as opposed to “Connect Plus” unless you wish to also purchase an e-book.
4. Click the "Yes" button to confirm your registration.

Follow the steps below to register and purchase an e-book instead of a physical textbook:

1. Same as above
2. Skip this step
3. Fill out the register form that appears and click the "O.K." button. You should purchase
“Connect Plus” as opposed to “Connect” to have access to the e-book.
4. Click the "Yes" button to confirm your registration.

Useful tips for working in Connect:

o Do one thing at a time. It is not possible to view past results while in the process of answering a
question, or to open two graded assignments at the same time.
o To print a homework assignment, use the browser’s Print Preview and Page Setup options to get
the best result. Switch from Portrait to Landscape form factor and extend the margins as far as
possible often helps.
o Use the "Next", "Back", "Jump To", and “Save my work” buttons often while you work on the
Connect. If there is no activity within 60 minutes, Connect will automatically log you out
without saving your work.
o Click "Save and Exit" if you wish to work on your assignment at a later time.
o Avoid using copy and paste to fill out your answers. Copy and Paste might enter hidden
characters in your answers and prevent you from getting a grade.

For help, you can call McGraw-Hill Technical Assistance at (800) 331-5094, or fill out an online form at
Contact Us page on http://mpss.mhhe.com/review_welcomekit.php.

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 Planned Topics and Reading Assignments

Week Topics Reading

Introduction and Ethics - Tuesday
The role & function of Managerial Accounting
Chapter 1
Standards of Ethical Conduct

Cost Terms, Concepts & Classifications - Thursday

Direct versus Indirect Costs
9/10 Chapter 2
Cost Tracing, Accumulation and Allocation
Variable, Fixed and Mixed Costs
Cost Estimation of Mixed Costs
Scattergraph and High-low Methods
Product Costs versus Period Costs

Cost Terms, Concepts & Classifications - Tuesday

Product Costs versus Period Costs
Income Statements
Gross Margin, Operating Income, Net Income Chapter 2, 2B
Cost Computation
Manufacturing Costs
Cost of Goods Manufactured
Cost of Goods Sold
9/17
Appendix 2B: Cost of Quality – Tuesday/Thursday
Four Types of Quality Costs
Quality Cost Report

Cost-Volume-Profit Relationships - Thursday Chapter 5

Traditional (GAAP) versus Contribution Income Statements
Break-even & Target-Profit Quantity/Revenue

Cost-Volume-Profit Relationships – Tuesday/Thursday

Application in Multiple Product Cases
Chapter 5
PV & CVP Graphs
Margin of Safety
9/24 Operating Leverage

Job-Order Costing - Thursday

Chapter 3
Accounting for DMC, DLC, and Overhead Costs

Job-Order Costing
Accounting for Applying Overhead Costs
Adjustments for Over-/Under Applied Overhead Costs
10/1 Chapter 3
Determine Total Costs and Unit Costs
Determine Balances in WIP & FG inventories and CGS

Activity-Based Costing
Cost Distortion in Traditional Job-order Costing
Chapter 7
Tracking Overhead Costs to Activity Centers
10/8 (Exclude
Allocating Activity Costs to Jobs
Appendices)
Differences between Traditional Costing and ABC

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Week Topics Reading
Midterm Examination (Tuesday, October 15)
N/A
Budgeting – Thursday
Operating Budget for Manufacturers
Sales and Production Budgets
10/15 Chapter 8
DM Purchase Budgets
Overhead and S&A Expense Budgets
Operating Budget for Merchandisers
Merchandise Purchase Budgets

Budgeting
Operating Budget for Manufacturers
Sales and Production Budgets
10/22
DM Purchase Budgets
Overhead and S&A Expense Budgets
Operating Budget for Merchandisers
Merchandize Purchase Budgets Chapter 8
Cash Receipt and Disbursement Budgets
Cash Budget
Budgeted Income Statements
Project Balances in Accounts Receivable, Payable, and
Retained Earnings

Performance Reporting & Variance Analysis

Flexible Budgets for Revenue
Flexible Budgets for Variable, Fixed & Mixed Expenses
Activity Variances
10/29 Chapter 9
Revenue Variances
Spending Variances
Overall Effect of Variances on Operating Income

Performance Reporting & Variance Analysis – A Closer Look at the Spending

Variances
For Variable Costs (DMC, DLC, VMO):
Price (Rate) Variances
Chapter 10,
11/5 Efficiency (Usage or Quantity) Variances
10A
For Fixed Overhead Costs:
Spending (Budget) Variances
Production Volume Variances

Production Volume & Accounting Earnings

Operating Income Under Absorption Theory Chapter 6
11/12 Operating Income Under Variable Cost Theory (pp.229-
Differences in Operating Income Under Two Theories 240)

Segment Reporting
Chapter 6
Traceable vs. Common Costs
11/19 (pp.240-
Segment Margin and Segment Reporting
249)

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Week Topics Reading
Performance Measurement and Responsibility Accounting
Cost, Profit, and Investment Centers
Return on Investment (ROA, ROE)
Return on Sales or Profit Margin
Capital Turnover Ratio
Residual Income and Cost of Capital
11/26 Chapter 11
Operating Performance Measures
Balanced Scorecard

* No class scheduled for Thursday, November 28 (Thanksgiving). This topic will be finished
on Tuesday, December 3.

Differential Analysis for Business Decisions

Total versus Differential Approach
Evaluate Customer Orders
Insourcing or Outsourcing
Keep or Drop Business Segments
Sell Now or Process Further
12/5 Chapter 12
Optimization over Resource Bottleneck

* There will be no class on Tuesday, December 10 (Study Day). If necessary, this topic will be
completed on Thursday, December 12. Otherwise, this class period will be used for a final
exam review session.

12/17 Final Examination (date to be determined) N/A