Introduction to Managerial Accounting - UGBA 102B

Spring 2011
Haas School of Business
University of California, Berkeley

Professor: Nicole Johnson

Office: F-487
Office Hours: TBA
Email: njohnson@haas.berkeley.edu
Phone: 642-6590

Class Time:
Section 3: 2-3:30pm, Monday & Wednesday, C230
Section 4: 3:30-5pm, Monday & Wednesday, C230

Discussion Sections:
Section 301: 8am, 166 Barrows
Section 302: 9am, 160 Dwinelle
Section 401: 8am, 170 Barrows
Section 402: 9am, 110 Barrows

Graduate Student Instructors:

Section 3 (Discussion Sections 301/302): Section 4 (Discussion Sections 401/402):
GSI: Yiran Peng GSI: Paul Kisiliuk
Email: yiran@berkeley.edu Email: paul_kisiliuk@mba.berkeley.edu

Course Overview and Objective:

This course provides an introduction to the concepts and tools of managerial accounting. Over
the course of the semester, we will focus on the following important areas:

• How to use economic reasoning and accounting information to address specific business
problems

• How to develop useful measures of resource, customer and product costs within a firm

• How different cost concepts are useful for different types of decisions

• How various firm-specific policies (managerial performance evaluation, transfer pricing,

budgeting) affect the economic incentives of the decision-makers within the firm

Prerequisite:
Successful completion of ‘Introduction to Accounting’ UGBA 102A.

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Required Text:
The required textbook is "Fundamentals of Cost Accounting", 3rd edition, by Lanen, Anderson
and Maher. You have three purchase options:

1. I created a custom, slightly abridged version of the book that is printed in black and
white and sells at a discounted price. You can purchase the custom book from the
bookstore.
2. Purchase the regular book
3. Purchase an ebook version (same as the custom version, but in color) by following the
instructions below. The ebook costs about $100.

Instructions to purchase the ebook:

1. Go to http://create.mcgraw-hill.com/shop/
2. Search for the book by ISBN: 9781121088412 ( Title: Introduction to Managerial
Accounting)
3. Add the book to your cart and pay using a credit card.

Note that the ebook is one long, color pdf file. It requires a password to open each time and
carries some restrictions on use (it can’t be printed, for example). If you have any technical
problems using the ebook, you will need to get help from McGraw-Hill customer service.

Supplementary Materials
Class handouts, exam review materials, and homework solutions will be posted on bspace.

Class Format:
This class meets three times a week on Monday, Wednesday and Friday. During the Monday
and Wednesday lectures, I will present new information, work out problems and lead class
discussions. Students should read the assigned chapters in the textbook before class. I will not
have time to cover everything in the text. Rather, I will use class time to reiterate and clarify
the most important and/or difficult concepts and to apply the material to real life situations.

Fridays are optional review sessions, led by the GSI’s. During these sessions, the GSI’s will
collect and hand back homework, discuss solutions to assigned homework problems, and work
extra problems to clarify difficult concepts. They will not cover new material. It is important
that you work problems before solutions are discussed because you will be unable to solve new
problems by trying to memorize solutions to old problems.

Class Participation
Class will be more fun and you will learn more if everyone participates in class. Please come
to class prepared to ask questions and contribute to the class discussion.

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Grading policy:
Course grades will be based on the following:
Points
Homework assignments (8) 15%
Case Writeups (3) 15%
In-class quizzes (5) 5%
Midterm 25%
Final Exam 40%
Total 100%

Since the final exam is comprehensive, I will put more weight on the final and less on the
midterm if you do poorly on the midterm but appear to have mastered the midterm material on
the final exam.

Note that grades for individual assignments/quizzes/cases/exams will be posted on bspace.

Please let me or your GSI know if you think there has been an error in a posted score.

Homework
It has been my experience that students learn the material in this course most effectively by
working out problems. You are encouraged to work together on homework assignments, but
each student must write up and turn in the homework assignments individually. Homework
grades will be based on conscientious effort as well as completeness. Solutions to the
homework will be posted to bspace.

Homework assignments are due at the discussion sessions. Alternatively, you may place your
completed homework in a box outside my office (F487) by 9am on the day it is due. Graded
homework can be picked up during the discussion sessions or outside my office (F487). No
late homework is accepted and no credit will be given for late homework. However, I will
drop your lowest homework score.

On each homework assignment, please write the following in the upper left corner: Your
name, your student ID, the homework problem numbers, the date the homework is due, and
your discussion section (301,302, etc).

Optional Problems
There are optional practice problems for each chapter listed in the Course Schedule below.
These problems, which the authors of the textbook adapted from the CPA and CMA exams,
will give you extra practice for this course and will help you focus on the material that you will
need to know if you plan on taking one of those exams. Solutions to the optional problems will
be posted each week when the solutions to the homework are posted. The optional problems
should not be turned in.

Group Cases
Students will complete three group cases during the semester. Cases will help you dig deeper
into the issues we are discussing and will provide an opportunity for more in-depth class
discussion about a particular topic. I encourage you to work on the cases in groups of 2-3

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students (maximum group size is 4).

The cases are due at the beginning of class on the due date indicated in the course schedule.
You should turn in one copy of the case for the group and everyone in the group will receive
the same grade. Additionally, each member of the group should retain a copy of the case to
refer to during our class discussion.

The case write-up should be typed and it should be written and formatted in a professional
manner (imagine that you are writing a report for your boss). Your grade will be based on the
correctness of your analysis, the clarity of your writing, and the presentation of your results.
Case write-ups should include a cover page that lists the name of each student in the group and
the group’s Section number.

In-Class Quizzes
Throughout the semester, I will give at least 6 in-class quizzes. The quizzes will take place at
the beginning of class and will cover the assigned reading for that day. They will be in
multiple-choice format (5 questions) and will focus on very simple concepts and definitions
from the text. Your top 5 quiz scores will count toward your final grade. Missed quizzes
cannot be made up. When reading is assigned for a week (instead of a day), the quiz can take
place during either class that week.

Exams
Exams are mandatory unless they are excused, ahead of time, for a documented illness (i.e. you
have a note from your doctor) or university-approved absence. There are no exceptions.
Students who do not take the midterm and are not excused from the midterm will receive a
score of zero. Students who are excused from a midterm will have additional weight placed on
the final exam. There will be no make-up exams for the midterms. No extra time will be given
for students who arrive late for an exam.

All exams are closed-book and closed-notes. Students must bring the following to each exam:
(1) No. 2 pencil (2) blank Scantron answer sheet (the green and white 11”x 4.25” Scantron
sheets) and (3) a basic calculator. Any device that can store text or transmit a wireless signal
(cell phone, PDA, advanced calculator) cannot be used during the exam. The exams will
contain both multiple choice and workout problems.

The final exam will be comprehensive and will be held at the times indicated on the schedule
below. You must arrange your schedule so that you can take the exam at the scheduled time -
no exceptions. Anyone who misses the final exam will fail the course. The final exam will
follow the same format as the midterm, but will be about twice as long.

Questions about grading

Questions about the grading of any exam or homework assignment, including (but not limited
to) requests for re-grading, must be made to the GSI within one week of the time that the exam
or assignment is returned to you. All questions must be in writing. If you ask for an exam or
case to be re-graded, it will be re-graded in its entirety, which could result in an increase or
decrease in your grade.

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Class Etiquette
All laptops, cell phones, PDA’s, and other electronic devices should be turned off and put
away during class.

Academic Integrity
Any type of academic dishonesty or cheating will result in an immediate failing grade in the
course. All incidents of academic dishonesty will also be reported to the Dean’s office and the
campus Student Judicial Affairs committee. All students should be familiar with the Code of
Student Conduct and know that the general rules stated in that document apply to this class
(copies may be picked up at 326 Sproul Hall or on the web at
http://students.berkeley.edu/uga/conduct.asp).

Examples of unacceptable behavior: Copying answers from another student’s exam, allowing
another student to copy from your exam, using written or electronic notes during an exam,
communicating with another student (verbally or electronically) during an exam, sending or
receiving emails/texts/IM’s during an exam, discussing an exam with a student who took it in
an earlier section before you’ve taken it, discussing an exam that you just finished with a
student in a later section who hasn’t taken it yet, copying another student’s homework and
turning it in as your own, copying another group’s case write-up and turning it in as your own,
allowing another student or group to copy your homework or case write-up.

Emergency Procedures
Please make sure you are familiar with the Haas Building Emergency Plan:
http://groups.haas.berkeley.edu/adminsvcs/BEP_Final.pdf.

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 Course Schedule, Spring 2011

Optional Problems,
Week

Date Topics Readings Homework and Cases adapted from the

CPA/CMA Exams

Cost Concepts, Analysis and Estimation

1 19-Jan Introduction Chapter 1 None 1-21,1-22

24-Jan 2-22, 2-46, 2-53,

Chapter 2, 2-44, 2-45, 5-32,
2 Cost Concepts and Estimation 5-25, 5-47
Chapter 5 5-51
26-Jan (Due Jan. 28)
31-Jan CVP Analysis, Operating Leverage, Relevant 3-29, 3-40, 3-41
3 Chapter 3 3-47
Costs (Due Feb. 4)
2-Feb

7-Feb Liquid Chemical Case (4-

4 Cost Analysis for Decision Making Chapter 4 4-31, 4-53, 4-55
61) - due Feb. 9
9-Feb

Cost Management: Basic Product Costing

14-Feb Variable and Absorption Costing Intel Article 4-44, 6-41

5
(Due Feb. 18)
16-Feb Intro to Product/Service Costing Chapter 6

21-Feb No Class: President's Day 7-37, 7-44, 7-49

6 Chapter 7 7-51
(Due Feb. 25)
23-Feb Job Order Costing

28-Feb 8-25, 8-26, 8-27, 8-28, 8-11,8-12,8-13,8-

7 Job Order and Process Costing Chapter 8 8-48 14,8-37,8-38,8-
2-Mar (Due Mar. 4) 39,8-41

7-Mar Catch up and Review

8 None: Review Midterm
9-Mar MIDTERM

Cost Management: Topics in Cost Allocation

14-Mar 11-35, 11-38, 11-

Allocating Service Department Costs, Joint 11-42, 11-53, 11-59
9 Chapter 11 39, 11-48, 11-53,
Cost Allocation (Due Mar. 18)
16-Mar 11-55, 11-56

21-Mar
10 No Class: Spring Break!
23-Mar

28-Mar Guest Speaker Grape Cola Caper Case

11 Chapter 9 9-42
(9-48) - due Mar. 30
30-Mar Activity-Based Costing
Management Control Systems

4-Apr Intro to Management Control Systems Chapter 12 12-30,12-31, 13-

13-28, 13-44, 13-46
12 25,13-26,13-43,
(Due Apr. 8)
6-Apr Planning and Budgeting Chapter 13 13-45
16-3, 16-4, 16-
11-Apr Chapter 16,
16-46, 16-52 42,16-54,16-
13 Budgeting and Variance Analysis AGM.com
(Due Apr. 15) 55,16-56, 16-
13-Apr (16-61)
57,16-58
18-Apr Chapter 14 Barrows Consumer
Financial and Non-Financial Performance
14 Products Case (14-43) - 14-37, 14-39
Evaluation
20-Apr Chapter 18 due Apr 20

25-Apr Transfer Pricing 15-18, 15-28, 15-35 15-17,15-28,15-

15 Chapter 15
(Due Apr. 29) 31,15-32
27-Apr Course Wrap up and Review

RRR Week: Monday May 2 to Friday, May 6

Final Exams (Locations TBA)

Section 3: Tuesday, May 10, 11:30am-2:30pm
Section 4: Wednesday, May 11, 7-10pm

Note: Final exams must be taken at the times listed above. No exams will be given early or late.