BUSI/COMM 294: Section 921

Introduction to Managerial Accounting

May/June 2008

Instructor: Aziz Rajwani

Office: Henry Angus 359
Office Hours: Monday to Thursday, 4:30-6:00
Phone: 604-822-8533
E-mail: aziz.rajwani@sauder.ubc.ca

COURSE OBJECTIVES:

This course focuses on the use of accounting information in efficiently operating an

organization. The concepts are sufficiently general to be applicable in both profit and not-for-
profit organizations, but most of our discussion will deal with profit-oriented firms.
Management accounting has two major roles:

Decision-Facilitating Role: Managers have the responsibility and authority for making
decisions with respect to the acquisition and use of an organization's resources. To do this
effectively they must identify the actions (or strategies) available to them, predict the relevant
consequences of those actions, and then choose the action that has the most preferred
predicted outcome. Management accounting systems can be effective tools in providing
information that is useful in predicting the possible consequences of alternative actions and in
presenting a description of those consequences. Furthermore, management accounting
systems can help identify situations in which "corrective" action is required.
Decision-Influencing Role: Managers are often employees, rather than owners, of an
organization. Their action choices are affected by their personal preferences with respect to
the consequences of those actions. Management accounting systems can be effective tools in
providing measures of management performance which, when combined with appropriate
incentives, will induce management to select the actions preferred by the owners or directors
of the organization. In doing so, the system is fulfilling its decision-influencing role.
An organization's accounting records must provide the information necessary to prepare the
financial statements reported to investors, bankers, unions and others who are not part of the
firm's management. These statements must be prepared in accordance with generally
accepted accounting principles (GAAP), particularly if the statements are audited. However,
the information reported to management need not be prepared in accordance with GAAP.
Management wants the information that is most useful in operating their organization, and that
often differs from the information used to satisfy GAAP.
You should not approach the material in this course as one of memorizing rules or particular
solution techniques. We seek to help you develop your analytical skills with respect to the
identification and use of decision-relevant accounting information. We will provide in-class
UBC Diploma in Accounting Program – BUSI/COMM 294: Section 922 – Page 1
examples, self-study problems, and assignment problems that are designed to help you
understand and apply the key concepts. The examination questions will test your
understanding of those concepts, but will often do so by posing problems or
conceptual questions that differ from those you have seen before.
TEXT:
Managerial Accounting, Seventh Edition, Garrison, Irwin/McGraw-Hill, 2006 with Lyryx
access code. Students who choose to purchase a used text, must purchase a Lyryx
access code from the Bookstore in order to complete the assigned labs.
The textbook has an “Online Learning Centre”: www.mcgrawhill.ca/college/garrison which
may benefit some students.
A $35 materials fee (for class handouts) must be paid to the duplicating services centre (HA 423)
or online at www.sauder.ubc.ca/theStore/store/. This fee must be paid by May 16th please.
Thank you. Keep your receipt (in case of “errors”…). Grades may be withheld if the fee is
not paid. No handouts will be provided to students who have not paid the fee by the beginning of
class on the 20th of May. [I don’t get a single cent of the fee.]

WebCT:
Periodically, materials will get posted on Web CT (www.webct.ubc.ca). For your campus-
wide login (“CWL”) go to www.it.ubc.ca If you need technical support, please e-mail webct-
students@interchange.ubc.ca
WebCT will contain the critical files for the course, including assignments, assignment
solutions, solutions to problems from the textbook and old examinations with solutions.

E-Mail:
I will also be e-mailing you (as necessary). If you don’t have an e-mail account, you can get one
at www.interchange.ubc.ca Please make sure that your e-mail address is up-to-date: Go to
www.students.ubc.ca Under “Quicklinks”, click on Student Service Centre (SSC). Login to the
SSC, and under “Personal Information”, click on e-mail change.

COURSE OUTLINE: TOPICS, READINGS, AND ASSIGNMENTS

The outline specifies the dates on which each topic will be started. You should read the
relevant chapter before the topic is discussed in class so that you can maximize your in-
class learning experience. History has shown that failure to prepare for class dramatically
reduces the quality of your learning experience and you will feel that the pace is going too fast.

CASES AND IN-CLASS PROBLEMS:

We will go through various problems and cases in class. Some cases are merely more
complex problems, but some are less structured than a typical problem and provide scope for
discussing some of the more conceptual or subjective issues associated with management
accounting. It is important that you develop your ability to analyze such cases since "case
type" questions appear on the midterm and final examinations.

EXAMINATIONS:
Cell phones are NOT allowed on the desks during exams. Thus, make sure you have a watch
to keep track of time. At the start of the exams, turn your cell phones OFF and PUT THEM
AWAY in your jacket/pants/bag/purse/”murse”. Programmable calculators are not permitted for
examination purposes.

UBC Diploma in Accounting Program – BUSI/COMM 294: Section 922 – Page 2

COURSE GRADE:
The course grade will be determined as follows:
Assignments 15%
Labs 5%
Midterm examination 30%
Final examination 50%
100 %

NOTE:
You must achieve an aggregate passing grade on the examination components in order to
pass the course. [(MT*30% + FINAL*50%) ≥ 40%]

ASSIGNMENTS:
The purpose of the assignments is to keep you current with the material that we are covering.
The assignments will help you prepare for the examinations as they are primarily a self-study
component where you get to communicate your knowledge and receive feedback in the form
of a solution posted on-line.

The assignments will require that you apply the knowledge you have learnt and they will give
you an opportunity to demonstrate your understanding as you use management accounting
tools in making a management decision. Turn in your assignment at the beginning of class
based on the .pdf template provided on WebCT.

The assignments and solutions will de posted on the web site one week prior to their due date.
The solutions will be posted on WebCT.

LABS – Lyryx Learning Inc.

The labs are to be completed on line and are provided for you to develop a basic
understanding of the concepts. They are not onerous but will provide a foundation which is
required to complete the assignments and will also begin the process of preparation for the
examinations. The examinations will utilize the quantitative elements highlighted in the Labs
coupled with the in-class discussion of the topics.

“Practice” Examinations
There will be one midterm and one final examination with solutions posted on WebCT. The
assignments and labs, in conjunction with your reading and class discussion, will equip you to
successfully complete the examinations. The examination questions will be comprehensive in
nature requiring you to thoughtfully integrate your knowledge providing quantitative and
qualitative responses.

UBC Diploma in Accounting Program – BUSI/COMM 294: Section 922 – Page 3

 BUSI/COMM 294 – SPRING 2008
DATE GENERAL NATURE OF THE TOPIC(S) TEXTBOOK

May 6 Ch. 1: Managerial Accounting & the Business Environment 1–18 & 22
Ch. 2: Cost Terms, Concepts and Classifications (1) 27–49

May 8 Ch. 2: Cost Terms, Concepts and Classifications (2)

Ch. 3: Systems Design: Job Order Costing (1) 75–110

May 13 Ch. 3: Systems Design: Job Order Costing (2)

Ch. 5: Cost Behaviour: Analysis and Use 178–201

May 15 Ch. 6: Cost-Volume-Profit Analysis (1) 220–248

May 20 Ch. 6: Cost-Volume-Profit Analysis (2)

Ch. 8: Activity-Based Costing (1) 310–345

May 22 Ch. 8: Activity-Based Costing (2)

Ch. 13: Target Costing 643–644

May 27 Ch. 9: Budgeting 371–383

Ch. 10: Standard Costs (1) 427–441
444–455
May 29 Midterm Exam (Chapters 1−3, 5−6, 8)
6:30-8:30
###
June 3 Ch. 10: Standard Costs (2)
Ch. 11: Flexible Budgets and Overhead Analysis 481–500&502–505
Ch. 12: Sales Price and Sales Quantity Variances ONLY 547–550

June 5 Ch. 12: Segmented Reporting [NOTE: You ARE also 531–547
responsible for “Controllable vs. Non-Controllable” traceable 550–552
fixed costs] 570–571

Friday Ch. 12: Investment Centres: ROI and Residual Income 553–561 & 572
June 6 Appendix 12A: Transfer Pricing 572–580
***
June 10 Ch. 13: Decision Making: Relevant Costs (1) 613–637

June 12 Ch. 13: Decision Making: Relevant Costs (2)

Friday Final Exam. Date is scheduled by UBC. Location will be
June 20 announced in late May. There is no supplemental exam
6:30-9:00 should you not write the exam on this date.

### Please ensure that you have no conflict with this time.
*** Since our exam is on a class day, we will have a “question and answer session” during
class. Accordingly, we will need to have a “make-up class” on Friday, June 6th from
1:30-4:30. There will also be a “make-up class” (for the night section) from 6:30-
9:30 pm. You can attend either of these classes. Location to be announced.
UBC Diploma in Accounting Program – BUSI/COMM 294: Section 922 – Page 4
What is Lyryx?
Lyryx is an online learning and assessment program tied directly to the text. It provides
students with algorithmically generated problem material and detailed feedback on their
responses.

Lyryx Key Features:

► Algorithmically generated problems (unlimited opportunity to practice)
► 24/7 technical support for students
► Personalized feedback on answers
► Captures best score grades

How do students access Lyryx?

Lyryx is a Pin Code Access Website
Students choose the course specific Lyryx website at their institution, and self register using
the pin code card that is packaged with the text. Students who choose to purchase a used
text, must purchase a Lyryx access code from the Bookstore in order to complete the
assigned labs. Students may try the problem material as often as desired prior to
midnight of the due date set by the instructor. The student’s best score in a particular
lab will be saved.

LABS/ASSIGNMENTS SCHEDULE
LAB/ASSIGNMENT CHAPTERS DUE DATE
Lab #1 2 May 10
Lab #2 3 and 5 May 17
Assignment #1 3 and 5 May 20
Lab #3 6 May 22
Lab #4 8 May 24
Assignment #2 6 and 8 May 27@@@
Lab #5 10 and 11 June 7
Lab #6 12 (Segemented Reporting June 10
and ROI/RI)
Assignment #3 10, 11 and 12 (Segmented June 10
Reporting and ROI/RI)
Lab #7 12 (Transfer Pricing) and 13 June 13
Assignment #4 12 (Transfer Pricing) and 13 June 13###

@@@ The solution to this assignment will be posted after class. Since you won’t get this
assignment back before the midterm, you may want to photocopy it to compare it to
the solution.

### This assignment may be turned in by e-mail (ONLY as a “single .pdf file”), by fax (604-
822-2220), or to the DAP office (Henry Angus 202) by 4 pm.

UBC Diploma in Accounting Program – BUSI/COMM 294: Section 922 – Page 5