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Stan  ross  deptt of  accountancy            Fall2002

baruch  college, C.U.N.Y.



ACC 9815

                                 managerial   accounting  controls



Thursday 10.45-1.15-Room 6-175, VC BUILDING




      Jan Sweeney

office            Room 13-246, VC BUILDING

phone             646-312-3201


office hours   11.00-12.00 Tuesday and 4.15 – 5.15 pm Tuesday and Thursday and by appointment

Class web site        



Course Materials


Required Text:                       Management Accounting, 3nd Ed.

                              Atkinson, Banker, Kaplan & Young, Prentice Hall.


Course Objectives


This course covers a selection of topics in management accounting and cost management.  This course aims primarily at mastery of analytic and technical skills through problem analysis and problem solving.   It also aims to increase your interpersonal and communication skills, including team work,  and presentation  skills.  These skills are essential to your career success and form the basis from which you can continue lifelong learning. 




         Midterm Exam           30%

         Final Exam           30%

         Case Work           30%

         Homework           5%

        Class  Participation          5%





Exams  are individually-completed open-book exam, emphasizing fundamental managerial accounting techniques and concepts covered in lectures, assigned readings, problems, cases, projects, and class discussion. The final is cumulative but emphasizes material covered after the midterm. Both midterm and final exams will focus on quantitative questions.

No make-up exams will be given.  Medical and family emergencies must be documented.


Case Work:


A case study will be covered, as a group project, in class every week.  Each team, in turn, will take responsibility for leading the discussion on the main points of the case. Each team will submit a written “Executive Memo” analysis of the case.  Instructions for preparing the memo will be handed out separately.


Text and Homework:


Based on feedback from former students, I believe the best approach to using the text is as follows:


Of course, different methods work better for different people and you should do what works best for you.  The above approach is just a little more efficient in that the book covers a lot of material that I don’t and I cover a lot of material that the book doesn’t and, frankly, if it’s in the text but I don’t assign it in a problem or cover it in class, it ain’t gonna be on the exam.


There are no formal homework assignments in this course. However, you will occasionally be given a problem to solve or an article paper to comment on. Such “homeworks” will be due in the next class and will count towards class participation.


Class Preparation and participation:


The premise of a seminar is the formation of a learning community, which shares questions and ideas in class discussions.  Students are expected to carefully read and analyze the assigned cases before coming to class.  Participation involves questions, comments, or examples that provide insight, increase other students’ understanding, or integrate material from other sessions or courses. I will assess your participation immediately following each class, and your class preparation and participation grade will be a summarization of these assessments.  Be there, be prepared, speak up once in a while, and you’ll do fine.


Class Format

Each Class will begin with a brief overview of the chapter. After a short break, we will discuss the case study. Before I leave, I will review the material for the next class.








SESSION OUTLINE  (Subject to Revision)




Thursday, September 5th, 2002



·        Course Administration & Organization

·        Introduction to Management Accounting


1)      Atkinson, Banker, Kaplan & Young      (ABKY),Chapter 1 

2)      P. F. Drucker, "Be Data Literate - Know What to Know," Wall Street Journal, December 1, 1992.





Thursday, September 12th






Practice Problems:


·       Cost Concepts & Cost Behavior


1) ABKY, Chapter 3

2) Case Study – Outpatient Strategy Fails to Cut Costs

3)      Economic Concepts of Cost


3-28, 3-32,3-35,





Thursday, September 19th








Practice Problems:


·       Traditional Costing Systems


1)      ABKY, Chapter 4

2)      Case Study – DHS Inc

3)      The $7 Asprin

4)      "TheRise and Fall of Time-Based Manufacturing”  Management Accounting (June 1994), 56-59






Thursday, September 26







Practice Problems:


·       Activity Based Cost Management


1)   ABKY, Chapter 5

2)        Case Study – Bedford Mining

3)         “ABM Lifts Banks Bottom Line”

4)        “Unbundling the Costs of Hospitalization”:





Thursday, October 3rd







Practice Problems:

·        Activity and Process Decisions


1)      ABKY, Chapter 6

2)      Case Study - LPJ Wholesale

3)      “Accounting for Time.”

4)      Designing an Information System”


6-42, 43, 47,48,50




Thursday, October 10th








Practice Problems:


·     Pricing and Product Planning Decisions


1)      ABKY, Chapter 7

2)      Case Study – Eastside Medical Testing or Chocolate Bars Inc

3)      “How Manufacturers Price Products”

4)       “ABC for Marketing”


7-32, 33,35,39,43




Thursday, October 17






Practice Problems

·       Capital Budgeting


1)     ABKY, Chapter 8

2)     Case Study - -Liquid Chemicals

3)   NPV of your MBA


8-52,53, 54, 56 and 67 or 68





Thursday, October 23






Thursday, October 31








Practice Problems:


·       Cost Control Systems


1)      ABKY, Chapter 9

2)      Case Study - National Battery Company

3)      “Control Tomorrow’s Costs”

4)      Merchant, K. A., “The control Function of Management”






Thursday, November 6







Practice Problems:


·        Costs and Management Behavior


1)      ABKY, Chapter 10

2)      Case Study – McDonalds or Windsor Health Care or Bonn Company

3)   Kohn, “Why incentive plans cannot work.”










Thursday November 13








Practice Problems:


  • Budgeting


1)      ABKY, Chapter 11

2)      Case Study – Safety Auto Accessories

3)      “Continuous Budgeting at the Hon Company”

4)      “Budgeting Gamesmanship”

5)      “Budgeting Made Easy”


 11-47,50,51,57,60,62,67, Case 11-69








Thursday, November 20








Practice Problems:

·          Performance Measurement: Responsibility   Centers


1)      ABKY, Chapter 12

2)      Case Study - Custom Freight Systems

3)      “Transfer Pricing with ABC?”







Thursday, December 4








Practice Problems:


·       Performance Measurement: Transfer Pricing and Divisional Performance Measurement.


1)        ABKY, Chapter 12

2)        Case Study –– Diversified Electronics

3)        “What is EVA?

4)        “Greening with EVA”






Thursday, December 11




·     Review


Cases – Regent Company/Williamson Chocolate

             Jones Ironworks

             Cholesterol Chemicals/Brian Jones