UNIVERSITY OF TEXAS AT DALLAS

SCHOOL OF MANAGEMENT
Course: AIM 6305
Accounting for Managers
Spring 2005

Instructor: Liliana Hickman-Riggs, CPA CITP CMA CIA CFE DABFA MS

Item Phone Location

Campus 972 883-5903 SOM 4.228
Business 214 378-5400 (better number to call for a timely answer)
Fax 469 232-0768
Email liliana@accounting.net and
llh017100@utdallas.edu
Office Hours Thursday 5:30- 6:45 PM or by appointment
Website http://www.utdallas.edu/~llh017100/
Course Credits Time/Day
AIM 6305 10057-501 3 credit hours Thursday 7:00-9:45 pm
Textbook Internet Access
Managerial Accounting, Ronald W. Hilton, www.mhhe.com/hilton6e
th
6 Edition, McGraw-Hill Irwin
Miscellaneous Information
Last day to drop the course with a "W": March 25, 2005

COMMENTS:
• AIM 6305 Accounting for Managers covers the concepts and applications of measuring and
analyzing financial information pertaining to management and managerial accounting topics
such as cost data, budgeting, variances and financial report analysis for use by management
and third parties
• To be successful in this course, you must devote adequate preparation time.
• The course text chapter reading assignments and homework problems are indicated on the
attached schedule. The reading assignments should be completed in a timely manner.
• The assignment schedule may be modified during the semester if necessary.
• All efforts will be made to cover each chapter in a detailed manner. Because of the quantity
of the material to be covered an in depth study of each chapter cannot be realistically
achieved. It is the responsibility of each student to study any portions not covered in class.

COURSE REQUIREMENTS
Two closed-book examinations
Problems/Cases
Research Project
ATTENDANCE POLICY: Required
There is a direct relationship between attendance at every class and successful completion of the
course. Assignment changes and announcements may be made in class, and students are
responsible for these, irrespective of attendance or nonattendance at the time of the
announcement.

METHOD OF PRESENTATION:
The theory and philosophy of accounting will be presented through lectures supplemented with
handouts and overhead transparencies as needed. Your participation is essential.

COURSE OBJECTIVES:
The primary objective of this course is to develop an understanding of accounting information
for use by management in planning and controlling operations. A framework for measuring
managerial performance is developed through an analytical treatment of cost behavior under
dynamic conditions such as cost volume profit analysis, budgeting, and actual and standard cost
systems. The use of costs in decision- making contexts is emphasized. The ethical and
behavioral implications of accounting and other related matters will also be covered to
demonstrate the value of the material in real world situations.

READING ASSIGNMENTS:
Text chapter reading assignments and homework problems are indicated on the attached
schedule. Work as much of the homework as you can. Although many of the assigned
exercises/problems will be used to illustrate class lectures, the ultimate responsibility for
understanding is yours. Your homework will not be graded; however, to receive maximum
benefit from the class, homework assignments should be completed soon after the class.

EXAMINATIONS:
There will be two regular closed book examinations, each covering the chapters as indicated on
the assignment sheet. Exam dates are firm. Each test is a combination of problems and multiple
choices. Partial credit is given for well- labeled steps and computations, even if the conclusion
reached is incorrect. However, you must leave a clear paper trail of your thought processes and
understanding for me to follow. Please bring a Scantron form 882-E at each examination. No
scratch paper is allowed in the examination.

COURSE GRADING:
Total scores to achieve the following grades: A = 270, B = 240, C = 210

Two closed book examinations @ 100 pts each 200

Problems/cases/discussions (5 at 10 points each) 50
Term paper 50
Total available points 300

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The Cases, Problems and Discussions :
Must be emailed by the scheduled time. I will promptly acknowledge the receipt of your e-mail
and will correct your work at a later time. Be careful, strange things tend to happen in
cyberspace. If you don’t receive my acknowledgement assume your e-mail has not reached
me and take the necessary steps to contact me.
• The assignments are due via e-mail by midnight of the day due.
• Be sure you put your full name and the course number on the attachment you send.
• Best practice use both e-mail addresses

Research/Term Paper/Project:

A double-spaced typewritten paper, with graphs, charts, decision trees, and financial statements
(to name a few) should be incorporated in a business plan.
The project “john Adams” is due on April 21, 2005 hard copy and CD.

The decision analysis is a business case designed to incorporate the fundamental key managerial
principles you have learned in class and to apply them to a “big picture” problem.

Background assumptions : “John Adams has grown tired of working as a salaried manager of a
pizza restaurant. He cannot afford the average $500,000 needed to start a chain store, so he has
decided to open and successfully operate his own pizza place.”

You need to develop a business plan, a roadmap of activities to accomplish the goals and
objectives of your client. Your role is to advise John in all aspects of the new venture. You will
be the decision- maker and the analyst. Fixed and variable costs, cash flows, return on assets,
trend analysis, and advertising budget, break even, target profit, just to name a few crucial
drivers, will influence the decisions you make and will determine the success of the business.
Business goals and strategic goals will be confronted with John’s “poor cash flows” dilemma and
human resources problems in a way that dollars will make more sense than ever. Projections for
at least the first year of business will prove very important in the survival of this new business.

While the emphasis should be the cost and accounting principles le arned in class, marketing,
finance, and sound management will also be considered critical for success.
The more you critically consider all the elements needed for success the most likely John will
succeed.

The “Ten Criteria” (10 points each) that will be used as a “Scoring Guide” to evaluate your work
are:
1. Mastery of Accounting Concepts
Demonstration of thorough understanding of the Accounting Principles learned and their
applications.
2. Responsiveness to the Assignment
Assignment directly and completely accomplished in an exceptional manner.
3. Appropriateness for the Audience
Effective point of view, tone, and attitude toward content.
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4. Coherent Organization
Clear transitions and logical progression of ideas, major points, and conclusions.
5. Critical Supporting Analysis
The main points of the paper are supported by relevant and specific details.
6. Clarity and Conciseness
Clear, efficient well constructed sentences with specific appropriate vocabulary.
7. Correct Use of Mechanics
English is characterized by correct adherence to conventions of grammar, capitalization, and
spelling.
8. Citation and Documentation
Clearly incorporates material into the paper, documents sources accurately.
9. Visual Presentation
Graphics, charts, and visual aids are effectively used to enhance contexts.
10. Overall Evaluation
The paper accomplishes the purpose of the assignment. The writer keeps a narrow focus on
the topic while providing the reader a broad exposition on the subject.

ACADEMIC ETHICS:
All students are expected to behave in accordance with the academic integrity policy of The
University of Texas at Dallas. A student's personal integrity will be essential to successfully
completing this course.

AMERICANS WITH DISABILITIES ACT COMPLIANCE:

It is the policy of The University of Texas at Dallas to provide reasonable accommodations for
qualified individuals who are students with disabilities. This University will adhere to all
applicable Federal, State and local laws, regulations and guidelines with respect to providing
reasonable accommodations as required to afford equal educational opportunity. It is the
student's responsibility to contact the faculty member and/or the Service for Students with
Disabilities in a timely manner to arrange for appropriate accommodations.

STRATEGIES FOR SUCCESS:

To further ensure your success, I suggest you follow these strategies:
• Participate in Class: ask questions, contribute answers, offer feedback
• Reinforce your understanding with reading the chapters before and after class
• Apply your knowledge to problem solving, the more problems you solve, the better you
learn
• Do, do, do enough exercises to turn the “theoretical information” into “practical skills”
• Re-do homewo rk, to become proficient. Copying solutions ? working problems
• “Read the English!” If you understand the question you will find a correct solution
• Analyze and learn from your mistakes. Failure is a great way to learn. Preparation is success
• Exchange e- mail address with a classmate; in case you miss a class you must stay informed

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LEARNING OUTCOMES:

After successful completion of this course the student will be competent in the several topics.
Among the most important :

Cost behavior
Activity-based costing, Activity based- management
Analyze financial statements
Balanced Scorecard
Account for a manufacturer / process costing system
Prepare a flexible budget, master budget and calculate standard costs
Calculate and use cost/volume/profit relationships
Account for a manufacturer /job order costing system
Capital budgeting: buy versus rent. Make versus outsource
Profitability: the link to cost and to investment centers
Other topics educational objectives deemed important by the instructor:

v Apply higher-order thinking, generally accepted accounting principles and accounting

methods to decision modeling and solving real- world business situations.
v Represent and evaluate basic financial information verbally, numerically, graphically and
symbolically.
v Expand strategic/critical thinking skills and formal logic to support business and investment
decisions, budgeting, planning and forecasting.
v Use appropriate technology to enhance analytical/problem-solving skills and to solve
business problems and judge the reasonableness of conclusions.
v Interpret financial statements and accounting models/methods using financial ratios,
formulas, graphs, tables and schematics, and draw inferences from them.
v Recognize the limitations of business and accounting models/systems and the usefulness they
can bring in the day to day analysis.
v Develop the view that accounting is an evolving discipline, interrelated with diverse cultures
and economies, and understand its connections to other disciplines.

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 Class Schedule AIM 6305
Spring 2005
Modifications of dates and material will be made if necessary at the instructor’s discretion
Bring a calculator at each class.
Month Date Subject Matter Homework
Jan. 13 Introduction to the course
20 Chapter 1 and Chapter 2 Ex. 2-25, 28
Pr. 2-37, 32
27 Chapter 3 Product Costing and Cost Accumulation Ex. 3-24, 31,
v Case Study 3-62 p. 127 due 2-2-05 32. Pr. 3-45
Feb. 3 Chapter 4 Process Costing and Hybrid Product-Costing Ex. 4-16,
17,18, 24
10 Chapter 5 ABC and Cost Management Systems Ex. 5-22, 29
Chapter 6 Activity-Based Management Ex 6-33
v Case Study 6-60 p. 253 due 2-16-05
17 Chapter 7 Activity Analysis, Cost Behavior, Cost Estimation Ex. 7-25 (1)
Chapter 8 Cost-Volume-Profit Analysis Ex. 8-24, 27,
v Case Study 8-54 p. 343 due 2-23-05 28, 30, 31
24 Chapter 9 Profit Planning Ex. 9-25, 27,
28, 32
Mar. 3 Exam 1 Chapter 1-9
Please bring Scantron Form 882-E
7-12 SPRING BREAK
17 Chapter 10 Standard Costing Ex. 10-28, 31,
35
24 Chapter 11 Flexible Budgeting Ex. 11-22, 25,
Chapter 12 Responsibility Accounting 31
v Case Study 12-53 p. 537 due 3-30-05 Ex. 12-34, 39
31 Chapter 13 Investment Centers Ex. 13-24, 27
Chapter 14 Decision Making Ex. 14-31, 36,
41
Apr. 7 Chapter 16 Capital Expenditure Decisions Ex. 16-24, 25,
v Case Study 14-64 p. 631 due 4-13-05 26, 37

14 Chapter 17 Absorption, Variable, and Throughput Costing Ex. 17-15, 16,

17, 19, 20
21 Chapter 15 Target Costing Ex. 18-15, 16,
Chapter 18 Allocation of Support Activity Costs and Joint Costs 18, 19
v Term project due today – hard copy and disk
28 Final exam Chapter 10-18
Please bring Scantron Form 882-E