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COURSE OUTLINE

ACCT 222 Cost and Management Accounting

Semester One, 2018

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This course outline contains information specific to this paper. For more general information common to your papers, please refer to the COMMERCE_UG_2018: Commerce Undergraduate Students site on Blackboard.

Paper Description and Aims ACCT 222 aims to provide students with an understanding of, and ability to produce and apply cost and management accounting information that is used in planning and control of organisations (with special reference to New Zealand organisations). Particular emphasis is placed on mastering the topics of budgeting, variances and performance evaluation, relevant costs for decision making, pricing, treatment of overhead and allocations, and considering the influence that human behaviour and strategic direction have on those processes and the use of this cost accounting information. Prerequisites – C+ grade or better in BSNS 107 and ACCT 102 and 54 other points from Commerce Schedule C.

Learning Outcomes Upon successful completion of this paper, you should have achieved:

1) An understanding of and ability to calculate and apply the costing techniques detailed below under Core Topics (LO2.1, 2.2).

2) Understanding of the interrelationship of these costing techniques with other business functions (e.g. marketing, human resource management, strategy) and their role in real organisations, with special reference to New Zealand organisations (LO1.1, 2.2,3.1, 4.3).

3) Problem-framing and analytical skills, information seeking and retrieval skills, problem-solving skills (LO 1.1, 1.2, 2.2, 3.1, 3.2). More specifically you will be able to: 1) Critically evaluate a previously unseen organisational situation for its cost and

management accounting issues. 2) Formulate clear ideas about the problems and issues involved, and about any likely

further information and knowledge that might be required to deal with the issues identified.

3) Gather the necessary information and knowledge, and re-formulate an understanding of the issues.

4) Apply any necessary analysis and understanding to formulate alternatives to resolve the identified issues. Be aware of the strengths and weaknesses of various alternative courses of action.

5) Recommend a set of actions to resolve the issues. 4) More independence and self-direction in your approaches to learning (LO4.3). 5) An improvement in teamwork skills (LO4.2).

These learning outcomes concur with the following attributes described in the University of Otago Bachelor of Commerce Graduate Profile: Information literacy (LO1.1), Critical thinking (LO1.2), Specialist (LO2.1) and integrated business knowledge (LO2.2), Written (LO3.1) and oral communication (LO3.2), Teamwork (LO4.2) and Independent learning (LO4.3) (http://www.otago.ac.nz/business/study/undergraduate/otago033074.html). Core topics are: A) Relevant costing, B) Cost allocation, C) Budgeting and standard costing, D) cost – volume – profit analysis, E) strategic and behavioural management. Below is a set of learning objectives related to each of these five topics. As you progress through the course, you should use this set of learning objectives as a “checklist” to gauge your level of understanding and to decide on

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what further work you must undertake. You should have met all these learning objectives by the end of the course. The terms and concepts under these topic headings will arise during the course. However, every week, you are expected to do a considerable amount of reading on these topics for yourself. Most readings will be from the required textbook for the course (DR16, see page 7), but for some topics and for the case studies, students will need to research in other cost accounting texts (see Close Reserve in Central Library), management and marketing texts, accounting journals (both hard-copy and e-journals), additional readings (e-reserve) on Blackboard and on the internet. MyAccountingLab (see page 7) is also extremely useful for practice of technical examples and is highly recommended. USE THE FOLLOWING LIST AS A CHECKLIST You should ensure that you attend classes, complete course work and read sufficient materials to be able to: A) Relevant Costing / Accounting Information for Decision-Making 1. Explain the concept of relevant costs and relevant revenues and how this is potentially

different from the notion of fixed and variable costs. 2. Explain the importance of the time horizon in decision making and its impact on relevant

cost/revenue information (e.g., short term operating decisions versus long term strategic decisions).

3. Explain ‘sunk costs’ and why they are considered irrelevant to decisions. 4. Explain such terms as ‘opportunity costs’, ‘avoidable costs’, ‘differential costs’ and

‘incremental costs’. 5. Understand that accounts drawn up for financial accounting purposes often blend

fixed/variable, relevant/irrelevant costs, and therefore cost accounting information for decision-making often needs to be specifically constructed for the decision at hand.

6. Understand how an income statement can be constructed in a variable (or direct) costing format or a full (absorption) costing format, be able to construct either format from a given set of cost data and reconcile any profit differences. Explain how production volume impacts on absorption costing profit.

7. Undertake analysis in typical decisions (e.g. make or buy/outsource, special order, product pricing and profitability, product mix, customer profitability, add/delete product line/department/customer) for which cost accounting information is required.

8. Be aware of the role of ‘excess capacity’ in decision-making and its significance for cost analysis.

9. Be aware of the need in the long-run to cover all costs, and of the rather imprecise nature of the notion of “short run v long run”.

10. Explain and apply the notions of the internal value chain, value-added, product life cycles and product and customer ‘life cycle costs’.

11. Understand the concepts of and undertake typical calculations for target pricing and costing, and the cost- plus approach to pricing.

12. Be aware of the limitations of financial analysis for decision-making, and the need to consider other qualitative and strategic factors (see Section E).

B) Cost Allocation 1. Explain the notions of ‘overhead costs’, ‘indirect costs’, ‘direct costs’, ‘traceable costs’ and

‘allocated costs’. 2. Explain how accountants choose to create ‘cost centres’ or ‘cost pools’ in which to gather

together cost data. 3. Explain why and how costs may be allocated from one cost pool or centre to another. 4. Calculate allocations of costs from one cost pool to another e.g., single rate versus dual rate,

and support department costs to production departments.

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5. Understand that there is no ‘right way’ to collect costs together and then allocate them. Choices are made in defining cost pools, allocation bases, and methods of allocation.

6. Construct ‘overhead rates’ to allocate costs to products or services. 7. Understand how ‘overhead rates’ are typically predetermined and calculated based on

budgeted costs and activity levels. Understand how different assumptions about capacity (activity level) can be made when calculating ‘budgeted overhead rates’ and calculate these overhead rates.

8. Account for the differences between ‘budgeted overheads’ and ‘actual overheads’. 9. Understand the specific issues involved in the allocation of joint product costs and be able to

calculate allocations using the four typical methods. Analyse when a joint product may be further processed, and explain the difference between joint products and by-products.

10. Understand the notion of ‘activity-based costing’ (ABC). Calculate allocation bases on the basis of ‘cost drivers’ and then calculate product/job/service costs. Explain the relationship between ABC and activity-based management (ABM).

11. Understand the potential reasons why (/why not) managers of one department (cost centre) should be held responsible for costs allocated to them from another department.

12. Understand how management behaviour (decision-making) might be affected by the various cost allocation choices accountants make, and the ethical implications of this behaviour.

C) Budgeting and Standard Costing Systems 1. Understand what a budget is, and how static (master) and flexible budgets are constructed. 2. Explain the concepts behind and benefits to be gained from the use of a standard costing

system. 3. Describe the procedures involved in establishing standard costs. 4. Explain what variance analysis entails and is intended to measure. 5. Compute both sales (marketing/output) and input (production) variances at the aggregate

level. 6. Separate these aggregate variances into their several components (e.g., purchase price

variance, efficiency variance, etc.) through the use of both fixed and flexible budgets. 7. Record production variances in the ledger accounts. 8. Explain favourable and unfavourable, over- and under-applied variances, and know how to

dispose of them (directly to COGS or by proration) 9. Understand that the real value of a standard costing system begins when the causes of the

variances are analysed. 10. Explain how standard costing fits with such modern management practices as JIT, kaizen,

TQM and benchmarking. 11. Explain the concept of learning curves and their relationship to budgeting and undertake

learning curve calculations. 12. Understand how management behaviour might be affected by the processes of planning

and budgeting, and the ethical implications of this behaviour. D) Cost – Volume - Profit Analysis 1. Explain cost behaviour patterns. Segregate these behaviour patterns into fixed and variable

cost components. 2. Identify relevant ranges of activity. 3. Describe the relationship between relevant range and linear and non-linear relationships. 4. Explain the difference between discretionary fixed costs and committed fixed costs. 5. Understand the cost–volume-profit relationships that exist in a company. 6. Compute (both by formula and graphically) and use breakeven and target profit analysis for

one and multiple products.

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7. Explain the relationship between the breakeven point and the contribution margin, and how contribution margin differs from gross margin.

8. Understand that even though breakeven analysis is based on rigid limitations, it can result in effective answers without costly analysis.

9. Calculate how a change in such an input value as sales price, sales mix, or costs can influence the breakeven point (sensitivity analysis).

10. Compute and use the margin of safety ratio. E) Strategic and Behavioural Management 1. Describe the concept of an organisation and what it does. 2. Be aware of some New Zealand organisations and how cost and management techniques

are used within those organisations. 3. Explain the concepts of organisational mission, goals, objectives and strategies and the part

which management has to play in their development. 4. Explain the concept of goal congruence. 5. Explain the concept and phases of management control (planning etc). 6. Understand key features of people’s behaviour in organisations and how this can impact on

organisational effectiveness. This will include an understanding of: a. groups, group norms, group dynamics and teams b. interpersonal communication and relationships, networking and feedback c. leadership and what makes an “effective” leader; transactional and

transformational leaders d. motivation (“needs” theories; expectancy theory), performance measurement and

incentives. 7. Describe and apply the Boston Consulting Group Market Growth/Market Share Matrix,

SWOT analysis and Porter’s strategies for competitive advantage. 8. Explain the following marketing and pricing concepts:

a. price leaders b. price takers c. commodities d. premium pricing e. penetration pricing f. market skimming g. product bundling h. loss leaders i. product differentiation j. cannibalization.

k. churn rate l. customer lifetime value

Teaching Staff Paper Coordinator Name: Associate Professor Rosalind (Ros) Whiting Office: Commerce 346 Email: ros.whiting@otago.ac.nz Office Hours: Monday 1-2pm, Thursday 3-5pm Lecturer Name: Dr Sriya Kumarasinghe Office: Commerce 354 Email: sriya.kumarasinghe@otago.ac.nz Office Hours: Monday 3-5pm, Tuesday 4-5pm Every week students must attend a 2 hour lecture (Tuesday) and two 50 minute seminars (Monday

and Thursday at the same time). Your allocated seminar group is available in eVision.

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The ACCT 222 facilitators have office hours in which students can just drop in and consult with them about problems with the course material. In the first instance you should meet with the facilitator who covered that material, but if she is not available, then you can meet with the other ACCT 222 facilitator. For any administrative enquiries, you should contact the Course Coordinator.

Class Representatives Class representatives are an important means of communication between students and staff. Contact details for your student class representatives can be found on the Blackboard page for this paper.

Course Delivery Every week students must attend a 2-hour lecture (50 minutes followed by another 50 minutes) and

two 50 minute seminars (Monday and Thursday at the same time). Your allocated seminar group is

available in eVision.

Lecture: This will cover key technical material. Lecture Day/Time: Tuesday 2-3.50pm Room: OBS117 (TBC) A basic outline of the lecture for the Tuesday lecture will be placed on Blackboard by 5pm on the preceding Saturday. These are not comprehensive lecture slides. You must read the suggested readings before the lecture and bring your calculator in order to work through examples. Lectures are audio-recorded (but not videoed) and are available on Blackboard by Wednesday 10am. Ros Whiting will take 8 of the Tuesday lectures (Weeks 1-4, 6-7, 9-10) and Sriya Kumarasinghe will take 5 of the Tuesday lectures (Weeks 5, 8, 11-13. Seminars: Seminar Day/Time: Monday, Thursday: 9-9.50am or 11-11.50am. Room: see table below Seminars start in Week 1 of the course. Seminars are as important as the lectures and should not be missed. Students are required to stay in the same stream throughout the course and must attend Monday and Thursday of the same stream (ie at the same time).

Seminar Stream changes: If you have a valid reason to necessitate a seminar stream change (e.g. due to a timetable clash due to late enrolment after formal Course Approval), then this can be done between Monday 26 February and Friday 9 March 10-11am and 2-3pm daily in Room 351 of the Accountancy and Finance Department in the Commerce Building. Last date for stream changes is Friday 9 March. Remember that if you want to change your Monday time, then your Thursday time will change (and vice versa). Seminars are used for practice of further examples related to the lecture content, discussion of homework questions, and for student business case presentations. It is expected that students will access copies of (and attempt) the exercises in DR16 and the extended exercises and old exam

Week Seminar Facilitation

Monday 9 (OBSG02) Monday 11am (OBSG19) (TBC)

Thursday 9am (OBS117)(TBC)

Thursday 11am (OBS117) (TBC)

1-4,6 Ros Whiting Sriya Kumarasinghe Ros Whiting

5, 7-13 Sriya Kumarasinghe Sriya Kumarasinghe Ros Whiting

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questions before coming to the seminar class. You must bring a calculator and be prepared to work on examples in the class. In the Monday seminars in weeks 4 and 5, and the Thursday seminar in week 8, there will be some set homework questions (posted on Blackboard) that you must research in DR16 and on the internet before coming to the class. The course calendar (pages 11-13 in this outline and online on Blackboard) details semester dates, lecture and seminar topics, readings, and assessment related scheduling information. Note that this calendar may change as the course proceeds. Any changes will be announced at lectures and detailed on Blackboard. Students are expected to prepare for and attend all classes to gain full benefit from the course Students unable to attend a lecture or seminar are expected to catch up on missed material from the textbook or classmates. All topics covered in the course are potentially examinable. In the event of snow, the University remains open. The ACCT 222 staff will make every attempt to hold seminars and lectures.

Course Learning Resources Essential Resources Required Textbook - Datar, S. M., and Rajan, M. (2018). Horngren’s Cost Accounting: A Managerial Emphasis, 16th edition (Global Edition), Essex, England, Pearson Education. (=DR16) [This is a new edition of the previous text written by Horngren, Datar and Rajan (HDR15), and used in this course from 2015-17]. It is available either as a sole textbook (hardcopy or e-text) (see University Bookshop or http://www.pearsoned.co.nz/9781292211541 or http://www.pearsoned.co.nz/9781292211619) or combined in a coursepack with a MAL access code (see University Book Shop or http://www.pearsoned.co.nz/9781292211565 or http://www.pearsoned.co.nz/9781488687198)]. Business cases : Available on Blackboard under Course Documents>Additional readings (e-reserve). Blackboard Access – automatic access with enrolment in ACCT 222 (see page 8) Optional Resource Highly recommended: MyAccounting Lab (MAL) MAL is a computer-based interactive learning and practice set available on http://www.pearsonmylabandmastering.com. To access MAL you need a student access code which is available with the purchase of a new coursepack version of DR16 or it can be purchased online (NZ$45) at http://www.pearsoned.co.nz/9781292139531. The course code is whiting72393. Full instructions can be found on Blackboard under Course Information. UBS holds copies of the DR16 textbook and the combined textbook/access code coursepack, or you can purchase an e-text with MAL course code as described above. If textbook cost is an issue, the 15th Global or US editions of HDR (used in 2015-17 in this course) will suffice but are not ideal (all readings and exercises will be specified in terms of the pages and exercises in DR16). Also, you will not get access to MyAccountingLab and all its practice examples with a second hand textbook, unless you make an additional purchase of the usercode from Pearson (see above). Hard copies of the required textbook, the Student Solutions Manual (even-numbered questions) to HDR13 (13th edition, before the advent of MyAccountingLab), a student study guide and a range of other useful cost and management texts are available under Course Reserve at the Central Library.

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Blackboard https://blackboard.otago.ac.nz/ provides you with access to course materials, class notices, and resources. Blackboard is used to email the whole class so it is important that you check your student email and Blackboard regularly. Further information about student support, learning support and information, academic integrity and other University resources for students is available on the COMMERCE_UG_2018: Commerce Undergraduate Students site on Blackboard.

Student Webmail We will use your student email account to email you information relevant to your programme. To forward your University email address to an email address that you use regularly:

1. Log into your StudentMail account (http://www.otago.ac.nz/smlanding/) using your student username and password.

2. Click the Cog button (top right corner). 3. Click on Mail under Your App Settings. 4. Under Accounts on left hand side, select Forwarding. 5. Under the Forwarding heading, type in the email address you want your email to be

forwarded to. You can also choose to have a copy of these emails kept on your StudentMail account, so please check the box if you would like this.

6. Click the Save button.

Assessment All material presented is examinable (except where stated otherwise) by assignments and the final examination. All important assessment information such as due dates and times, content, guidelines and so on will be discussed at lectures and, where appropriate, detailed on Blackboard. Students are responsible for ensuring that they are aware of this information, keeping track of their own progress, and catching up on any missed classes.

Assessment Due date % of final grade

Problems (best 2 of 3) 8 March, 22 March and 26 April 14%

Group Case Study - presentation One of 29 March, 12 April, 19 April, 3 May, 10 May, 17 May

15%

Group Case Study - report 10%

Poster Assignment 17 May for Case Study groups 1-3 24 May for case Study groups 4-6

6%

Final Exam TBA (in 6-20 June period) 55%

TOTAL 100%

All assessed work must have a signed Declaration Sheet stapled to the assignment or glued to the back of the poster. The sheet for individual assignments (Problems and Poster Assignment) is in Appendix 1 (page 14) and the sheet for the Group Case Study Report is in Appendix 2 (page 15). Details of the assessment tasks follow:

1) Three Weekly Problems 14%. At the conclusion of the lecture on Tuesday in Weeks 2, 4 and 8, a problem relating to the weekly reading and lecture material will be placed on Blackboard. Students should undertake this problem and submit their attempts by the following Thursday morning. These can either be

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submitted in person in your own Thursday seminar or to the ACCT 222 dropbox on level 3 of the Commerce building before Thursday 9am. Late assignments will not be accepted. No assistance will be provided by the ACCT 222 teaching staff (do NOT email them) but a model solution will be placed on Blackboard on the Thursday afternoon. Students can work together on the solving of the problem, but the submitted problem answer must be the student’s own work and typed or handwritten by that student alone. The two best weekly problem marks will count for 14% of your total course grade. You should plan to do all three of these problems to help in your learning of techniques, but also in case you are unable to do one of the problems because of illness, snow, sports trip etc. The fact that the poorest weekly problem does not count, allows for an occasional absence and you should not attempt to seek a dispensation for occasional absences. However, in the case of an extended absence (e.g. chronic long term illness), or hospitalization, you should see the Course Coordinator.

2) Group Case Study 25%. There is no option with this activity. This consists of a group presentation in class (15%) plus a written Case Summary Report (10%). You will be randomly allocated to a group in the Week 3 Thursday seminar (15 March). Case Studies are found under Blackboard>Course Documents> Additional readings (e-reserve) (except for CS1 for which a link will be emailed to participating students). Presentation and submission requirements are discussed in more detail in the Case Study Approach document under Assignments on Blackboard and in the Week 3 Tuesday lecture. The final marks for the group case presentation and report are a combination of the instructor’s assessment (70%) and self and peer assessment (30%). Failure to email your completed Self and Peer Assessment form to your Thursday seminar facilitator by 5pm on the day of your case presentation will mean that you receive a weighting that is the lower of 0.5 or the weighting provided about you by your other group members.

3) Poster Assignment 6%. This activity consists of an A3-size poster profiling a New Zealand business in relation to the topics discussed in ACCT 222 this semester. You will be randomly allocated to one of 5 industries in the Week 3Thursday seminar (15 March). From this industry you will identify a New Zealand business currently operating in this industry. Poster details and submission requirements are discussed in more detail in the Poster Assignment document under Assignments on Blackboard. Students in case groups 1 (Raven Sun Enterprise), 2 (Sloan Styles) and 3 (Moses and San Miguel) must submit their posters on Thursday 17 May (Week 11). Students in case groups 4 (Dallas Consulting), 5 (Bellaire Clinical Labs) and 6 (Lipton) must submit their posters on Thursday 24 May (Week 12). Posters can either be submitted in person in your own Thursday seminar or to the ACCT 222 dropbox on level 3 of the Commerce building before Thursday 9am. Late assignments will not be accepted.

4) Final Exam 55%. 3 hours long consisting of one case study and 3 smaller problems. Further details will be provided one month before the examination. You will be provided with a formula sheet. Only the List A University approved calculators (Casio FX82, Casio FX100, Casio FX570, Casio FX95 and Sharp EL531) are allowed to be used in the ACCT 222 final examination.

For the Problems and Poster Assignment, one ACCT 222 facilitator marks all students’ work regardless of seminar stream to ensure that equity in internal assignment grading is maintained across streams. The case study presentation and report are graded by the seminar facilitator. The ACCT 222 facilitators constantly interact to ensure that equity in case study grading is maintained across streams. If at the end of the semester the overall grades from one lecturer’s streams are statistically different from the grades of the other lecturer’s streams, and no plausible explanation exists, then an adjustment to the grades will be made. The grades of the lower scoring stream(s) will be scaled up to the higher scoring stream(s). Internal assessment grades will be entered on EVision throughout the course. You should check that the recording of your marks is correct. If there are any problems with the recording, please see the

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Course Coordinator as soon as possible. Please retain all your assessed pieces of work throughout the semester, so that you can verify your marks should any problems occur.

Course Requirements To successfully complete the course, a student must achieve at least 45% on the final exam. Exceptional internal marks will not be used to cross-subsidise poor final examination performance. If students achieve less than 45% in the final exam but their calculated course marks are greater than 50% then they will still fail the course and this will designated by the words “Failed compulsory assessment” on their final course results.

In our experience, failure of the course is usually due to failure to achieve the minimum mark on the exam, not poor internal assessment marks. Usually around 75% of students pass ACCT 222.

Terms requirements: To be eligible to sit the final exam, students must have: 1) Met the presentation requirements of their group business case study and submitted a group

Summary Report; 2) Attended at least 3 of the other 5 student business case presentations that are not their own (ie

67% of the possible group case presentations) held in the seminars in weeks 5-7 and weeks 9- 11 inclusive.

Learning Outcomes

Learning Outcome

Th

ree

we

ekly

pro

blem

s

Gro

up

B

usin

ess

case

(presen

tation

&

sum

mary rep

ort)

Po

ster A

ssign

men

t

Exam

To

tal

1) An understanding of and ability to calculate and apply specified costing techniques

√ √ √

2) Understanding of the interrelationship of these

costing techniques with other business functions

√ √ √

3) Problem-framing and analytical skills, information

seeking and retrieval skills, problem-solving skills.

√ √ √ √

4) More independence and self-direction in your

approaches to learning.

√ √

5) An improvement in teamwork skills

√

Total 14% 25% 6% 55% 100%

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Course Calendar Readings are from DR16 unless otherwise specified

Wk Date Monday seminar Tuesday lecture Thursday seminar Assessment Tasks

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26 Feb- 2 March

Introduction to course and Cost and management accounting Readings: Course Outline, Chap 1

1. Revision of cost accounting terms and concepts 2. Introduction to Overhead allocation and cost allocation bases; 2014S1 Final exam Q3b Reading: Chaps 1&2, 127-41, 148-9, 363, 372-3, 393-407, 553, 591-593

Overhead allocation: capacity and plantwide vs departmental rates Reading: 172-80, 194-5, 363-67, 614-623

“What do I know already?” Self-test Quiz 1 (answers on Blackboard)

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5-9 March

Cost allocation : actual and budgeted ; Introduction to single/dual rate DR16 : Ex 4.22 Reading: 131-2, 622-630

1. Cost allocation: single and dual rates, DR16 : Exs 15-17 and 15-18 2.Cost behaviour, CVP and Breakeven Reading: Chap 3

Breeden Electronics A* (Quantitative solution* on Blackboard at 1pm)

Problem 1 due Thursday 8 March

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12-16 March

Decision Making and Relevant Information Reading: Chap 11

1. Relevant costing -2015S1 Final exam Q3 2. Business Case Study Approach Reading: Case Study Approach document, Referencing documents (Blackboard)

Business Case Group and Poster Assignment Allocation. Practice Case – Craddock Cup*

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19-23 March

Homework Questions No 1 (TQM, kaizen, benchmarking, product lifecycles, BCG and SWOT) Poster Assignment Details Reading: 27-29, 242, 287-89, 554, 929 Blackboard/internet

1.Changes in volume/sensitivity/ what-if analyses 2.Activity Based Costing (ABC) and Customer Profitability Analysis Reading: 100-1, 111-14, Chap 5, 236, 580-98; Fraser (2012)*

ABC and CPA - Ex 5-22 (2-4) ; 2016 S2 Final Exam Q2(c)

Problem 2 due Thursday 22 March

5 26-30 March

Homework Questions No 2 (marketing terms,

1.Porter and competitive advantage

CS1 Presentation – Raven’s Sun Enterprise Ltd (link emailed to

1st group presentation and report – due Thursday 29 March

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strategy, leadership) Reading: 24, 219, 498-9, 644-5; internet

2.DR16: Ex 13.4, 13.19 Reading: Chap 13; pg 499

students)

2-6 April

Mid Semester Break

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9-13 April

Budgets and variances; Flexible budgets; Responsibility and Controllability DR16: Ex 7.22 Reading: 217-222, 237-240, 270-276

1. Standard costing introduction. 2. Flexible Budget Input variances (direct materials and direct labour) Reading: Chap 7

CS2 Presentation – Sloan Styles Inc*

2nd group presentation and report – due Thursday 12 April “What do I know already?” Self-test Quiz 2 (answers on Blackboard)

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16-20 April

Wilmont Chemical* (Quantitative solution* on Blackboard at 1pm)

1.Flexible Budget Input variances (Manufacturing overhead) 2. Proration of overhead variances Reading: 149-153 Chap 8

CS3 Presentation – Moses and San Miguel Inc*

3rd group presentation and report – due Thursday 19 April

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23-27 April

Overhead variance example: 2016S2 Final Exam Q3

1.Proration example: DR16 Ex 4.41 2.Sales variances Reading: 274-5, 599-607

Homework No 3 (needs theories, management control, motivation) Readings: 877-881; internet

Problem 3 due Thursday 26 April

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30 April- 4 May

Sales variance example: 2015S2 Final exam Q2

1.Performance evaluation and incentives: Reading:773, 776, 779 Chap 23 2.Speaker - Lara Ariell, CFO at IRD

CS4 Presentation- Dallas Consulting Group*

4th group presentation and report – due Thursday 3 May

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7-11 May

JIT DR16: Ex 20.34 Reading: 807-815

1.Absorption Costing vs Variable Costing 2. 2017S2 Final Exam Q2 Reading: 349-361

CS5 Presentation – Bellaire Clinical Labs Inc (B)*

5th group presentation and report - due Thursday 10 May

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14-18 May

Absorption Costing and capacity DR16:Ex 9.37 Reading: 363-374

1.Joint Costing Methods 2. Further Processing and Byproducts Reading: Chap 16

CS6 Performance Measurement at Thomas J Lipton *

6th group presentation and report - due Thursday 17 May Poster Assignment due for students in CS1, CS2 and CS3

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21-25 May

2017S1 Final exam Q3

1.Multiple Service/Support department allocations 2. 2017S2 Final exam Q1 Reading: 630-41, 649-51

Revision Question: 2016S2 Final exam Q1 (a) and (b)

Poster Assignment due for students in CS4, CS5 and CS6

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28 May-1 June

Life cycle costing DR16: Ex 13.24 Reading: 560-562

1.Learning Curves 2. 2016S2 Final exam Q2(a) and 2017S2 Final exam Q4 Reading: 409-414

Allocation and learning curve example: Final Exam 2015S2 Q4

*Found under Blackboard>Course Documents>Additional Readings (e-reserve)

Lectures end Friday 1 June 2018 University Exam Period 6 - 20 June 2018

Disclaimer While every effort is made to ensure that the information contained in this document is accurate, it is subject to change. Changes will be notified in class and via Blackboard. Students are encouraged to check Blackboard regularly. It is the student’s responsibility to be informed.

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Appendix 1

ACCT 222 Declaration Sheet for Individual Assignment

Assignment: Full Name:…………………………………………………………

Student no:………………………………………………………..

Please read the University description of academic integrity and its Policy on Academic Integrity at http://www.otago.ac.nz/study/academicintegrity/otago006307.html and http://www.otago.ac.nz/administration/policies/otago116838.html and sign below: • I am aware of the University Policy on Academic Integrity and understand that if I contravene the requirements for academic integrity contained in that policy, then I will be subject to disciplinary procedures. • I declare that this piece of work is my own, and any facts, words, images and ideas from others have been referenced appropriately. Signature: ……………………………… Date: ……………………………………..

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Appendix 2

ACCT 222 Declaration Sheet for Group Case Study

Report Please read the University description of academic integrity and its Policy on Academic Integrity at http://www.otago.ac.nz/study/academicintegrity/otago006307.html and http://www.otago.ac.nz/administration/policies/otago116838.html and sign below: • I am aware of the University Policy on Academic Integrity and understand that if I contravene the requirements for academic integrity contained in that policy, then I will be subject to disciplinary procedures. • I declare that this piece of work is my own, and any facts, words, images and ideas from others have been referenced appropriately. All group members to complete the following table:

Full Name Student ID No Signature Date