Dietrich - Fisher College of Business - The Ohio State University

THE OHIO STATE UNIVERSITY Max M. Fisher College of Business MBA 6211 – Accounting for Decision Making Autumn 2013 INSTRUCTOR INFORMATION Instructor: Office: Office Phone: Office Hours: e-mail:

J. Richard (Dick) Dietrich 420 Fisher Hall (614) 247-6299 Cell phone: (614) 657-2991 Tuesdays and Thursdays, 8:30 am – 10:00 am and by appointment [email protected]

Assistant:

Rohit Takkallapalli

CLASS INFORMATION: Section 0030 (4775) 0040 (4776)

Time Tu 6:00 pm – 9:15 pm Th 6:00 pm – 9:15 pm

Room GE 375 GE 375

REQUIRED COURSE MATERIALS: Financial & Managerial Accounting for Decision Makers, by Thomas R. Dyckman, Robert P. Magee, Glenn M. Pfeiffer, Al L. Hartgraves and Wayne J. Morse, Cambridge Business Publishers, custom value edition, 2014, ISBN 978-1-61853-086-8. This textbook combines two textbooks and permission to access “MyBusinessCourse,” a web-based learning system. The components are:  Financial Accounting, Thomas R. Dyckman, Robert P. Magee, and Glenn M. Pfeiffer, 4th edition, Cambridge Business Publishers, 2014, ISBN 978-1-61853-044-8  Managerial Accounting, by Al L. Hartgraves and Wayne J. Morse, 3rd edition, Cambridge Business Publishers, 2014, ISBN 978-1-61853-072-1.  MyBusinessCourse is found at https://mybusinesscourse.com/ (can be purchased separately)  (The bundle price is expected to be substantially less than the price of purchasing separately.)

COURSE OBJECTIVES AND APPROACH: Accounting for Decision Making helps you to acquire basic accounting knowledge that is useful in the day-to-day practice of general management and other careers in business and non-business enterprises. Accounting systems provide important information for all types of organizations throughout the world. Despite their many differences, all accounting systems are built on a common foundation. Economic concepts, such as assets, liabilities, and income are used to organize information into a fairly standard set of financial statements. Bookkeeping mechanics compile financial information with the double entry system of debits and credits. Accounting conventions help guide the application of the concepts through the mechanics. This course outlines these accounting fundamentals. It then extends this knowledge by examining how accounting information and financial statements can be used to make decisions for planning, decision-making, performance evaluation and valuation. MBA 6211 – Working Professional Program Schedule (Tuesday class): Autumn 2013 Updated August 22, 2013

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This course is self-contained—students are not expected to have any prior knowledge of accounting; the only prerequisite is that students must be enrolled in the structured MBA program. Because students have different backgrounds, some students will possess significant knowledge of accounting; class discussions will attempt to bridge the wide range of background knowledge; examinations will be developed so that any student can demonstrate his or her proficiency with accounting based solely on materials used in this class. We will cover a considerable amount of material in this course. It is essential that you stay current with all reading and problem assignments. The course material is cumulative, making it important to keep up with the readings, complete homework assignments, and pay close attention to class discussions. Failure to follow these practices often leaves students lost and confused when it comes time to apply the material. You are expected to read all assignments and complete all assigned homework before the class session when the topic will be discussed or the assignment is due.

HOMEWORK PRACTICE AND ASSIGNMENTS: Learning accounting methods requires practice. Accounting is a language, and repeated, systematic practice is essential. To learn effectively, students sometimes benefit from immediate feedback and sometimes must complete problems without “a safety net”; that is, without having access to solutions immediately. Self-study problems: Learning is facilitated by solving homework problems individually or with other students. The syllabus suggests self-study problems for each chapter. Solutions for these self-study problems are available on myBusinessCourse to provide immediate feedback. Access to the solutions is intended to provide immediate feedback, not as a substitute for applying the concepts and techniques described in the textbook. Remember, there will be no solutions manual provided during examinations! Individual homework assignments: To assure that each student is developing an understanding of accounting concepts and techniques and is practicing regularly, each student must submit assigned homework problems individually. These problems provide individual practice and feedback on each student’s learning. These problems must be completed individually. You must complete these problems entirely on your own—you may not collaborate with anyone else. There are 10 sets of individual homework problems; you may earn up to 10 points on each. (Scores shown on myBusinessCourse will be scaled by a factor of 10.) The individual homework must be submitted via myBusinessCourse by the deadline shown in the schedule. No late homework submissions will be accepted except for extraordinary circumstances approved by the senior associate dean. The achieved score on all of your individual assignments will be aggregated, with an upper limit of 90 points. If your total achieved score on individual homework assignments exceeds 90 points, only 90 points will be entered into the grade calculation. This limitation provides a “margin of error” in individual homework assignments. EXAMINATIONS: Two mid-term examinations and a final examination will be administered to assess each student’s knowledge of the concepts and techniques presented in the textbooks, in homework problems and cases, and in class lectures and discussions. The exams will be closed book. You may use one double-sided sheet of paper (8½” x 11” maximum) containing notes during each examination. You may use a calculator, but you may not use a computer. Problems must be solved and presented utilizing appropriate formats as discussed in class or in the textbooks. You will have only a fixed amount of time to complete each examination. MBA 6211 – Working Professional Program Schedule (Tuesday class): Autumn 2013 Updated August 22, 2013

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The examination dates are shown in the schedule. If you know in advance that you will be unable to take an examination on the scheduled examination date, please arrange with an instructor for an arranged administration at least one week prior to the scheduled examination date. I expect you to take each examination at the scheduled or arranged time. Otherwise, you will receive a score of 0 unless you are ill or have an unforeseeable conflicting activity, such as a business or family emergency. You must provide evidence to support your assertion, e.g., a note from an employer or a statement from a physician. In the event of an unforeseeable conflicting activity, you should contact me prior to the exam, if practicable. A make-up exam may be scheduled; alternatively, the weight of future exams may be adjusted. The choice rests with the instructor. CASHMERE CONNECTION CASE: The Cashmere Connection case is to be prepared as a team. You may choose your team mates. Teams are limited to 4 members unless an exception is approved by the instructor. Each team member can receive up to 30 points for this case. The case is due at the beginning of class on the date shown on the schedule. Grading team assignments: In general, each member of the team will receive the same grade for team assignments. However, there may be times when one or more members of a team will “free ride” on the work of other members. The score of a free rider may be substantially reduced. To discover free riding, any member of a team may submit an individual Team Evaluation Form at any time prior to December 1. If someone does not submit a Team Evaluation Form, I will assume that, from this student’s perspective at least, no free riding problem exists. GRADING: Components that will determine the course grade are: Individual Homework Assignments (achieved score; 90 maximum) Cashmere Connection Case Mid-term Examinations (2 @ 90) Final Examination Total Possible

90 points 30 points 180 points 100 points 400 points

Students who possess significant prior knowledge of accounting may elect to eliminate the individual homework assignments from the weighting scheme and instead increase the weight on the examinations. Students who choose this option must complete an “Election of Alternate Weighting Scheme for MBA 6211—Autumn 2013” form and submit it via e-mail (to [email protected]) by Tuesday, September 3 at 11:59 pm. This form is available on Carmen. Expected Grade Distribution: Grades will be determined based on the overall achievement of the class. By policy, “all MBA courses will have, at maximum, an assigned grade average of 3.6.” Students will be ranked by their overall percentage score for the required assignments and exams. The following grade distribution is an ex-ante approximation of the final grades to be given:

MBA 6211 – Working Professional Program Schedule (Tuesday class): Autumn 2013 Updated August 22, 2013

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Grade A AB+ B BC+ C CD+/D/E

Characterization Exemplary performance Strong performance Good performance Adequate performance Adequate performance but demonstrating some deficiencies Weak performance, demonstrating serious deficiencies Poor performance, demonstrating pervasive serious deficiencies Exceptionally poor performance demonstrating pervasive and acute serious deficiencies Chronic lack of commitment and effort

Approximate Distribution 20% 30% 35% 10% B- or below 5% across all grades

The final grade distribution may differ from this ex-ante distribution because of variations in performance within the class or because of the overall achievement level of the entire class. STUDENTS WITH DISABILITIES: Any student who feels s/he may need an accommodation based on the impact of a disability should contact either instructor privately to discuss your specific needs. Please contact the Office for Disability Services at (614) 292-3307 in Pomerene Hall Room 150 to coordinate reasonable accommodations for students with documented disabilities. Also see www.ods.ohio-state.edu for more information about the Office for Disability Services. STANDARDS OF ACADEMIC INTEGRITY AND CONDUCT: Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University’s Code of Student Conduct, and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University’s Code of Student Conduct and this syllabus may constitute “Academic Misconduct.” The Ohio State University’s Code of Student Conduct (Section 3335-23-04)1 defines academic misconduct as: “Any activity that tends to compromise the academic integrity of the University, or subvert the educational process.” Examples of academic misconduct include (but are not limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and possession of unauthorized materials during an examination. Ignorance of the University’s Code of Student Conduct is never considered an “excuse” for academic misconduct, so we recommend that you review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct. While we expect all students to have high standards and behave honorably, like every academic institution, we sometimes encounter cases of academic misconduct. It is expected that students will report suspected cases of academic and student misconduct; as faculty members we are obligated by University Rules to report our suspicions to the Committee on Academic Misconduct. If COAM determines that a student has violated the University’s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade in this course and suspension or dismissal from the University.

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See: http://studentaffairs.osu.edu/resource_csc.asp


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We also expect that each student will behave in a manner that is consistent with the Fisher Honor Statement, which reads as follows: As a member of the Fisher College of Business Community, I am personally committed to the highest standards of behavior. Honesty and integrity are the foundations from which I will measure my actions. I will hold myself accountable to adhere to those standards. As a future leader in the community and business environment, I pledge to live by these principles and celebrate those who share these ideals. If you have any questions about these policies or what constitutes academic misconduct in this course, please contact either of us. Other sources of information on academic misconduct (integrity) to which you can refer include: 

The Committee on Academic Misconduct web pages (http://oaa.osu.edu/coam.html)



Ten Suggestions for Preserving Academic Integrity (http://oaa.osu.edu/coamtensuggestions.html)



Eight Cardinal Rules of Academic Integrity (www.northwestern.edu/uacc/8cards.html)

Permitted study materials: Use of inappropriate study materials, including previously prepared solutions to required homework problems and files containing tests used during previous terms, compromises the concept of equal opportunity for all students and therefore is prohibited. You may use materials that generally are available to all students provided that they maintain the spirit of the learning objectives. If I distribute any homework solutions during the semester, these materials may be used only by students enrolled in MBA 6211 this semester. You may not distribute any of these materials to others, including other students enrolled in MBA 6211 without my permission and permission of the copyright holder, Cambridge Business Publishers.


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MBA 6211 – Working Professional (Tuesday) Schedule: Autumn 2013 th

DMP = Financial Accounting, by Thomas R. Dyckman, Robert P. Magee, and Glenn M. Pfeiffer, 4

edition, Cambridge Business Publishers, 2014 HM = Managerial Accounting, by Al L. Hartgraves and Wayne J. Morse, 3rd edition, Cambridge Business Publishers, 2014. Tues. Aug. 27 6:00 pm

(1)

Topic: Class Activities:

Why Learn Accounting & Learning How to Learn Accounting A whole lot of talking by me with some demonstrations

Tues. Aug. 27 7:45 pm

(2)

Topic: Reading: Self-Study: Individual HW: HW Due Date:

Financial Accounting Overview & Constructing Financial Statements DMP Chapters 1 & 2 1: 27, 32, 35, 38, 40; 2: 14, 19, 29, 30, 31, 34 1: 28, 30, 36, 42; 2: 28, 37, 43 Monday, September 2, 11:59 pm

Tues. Sept. 3 6:00 pm

(3)


Financial Accounting Overview & Constructing Financial Statements You Make the Call (Chapter 1) You Make the Call (Chapter 2) C1-45; 2-56, 2-65, 2-66, C2-69


(4)


Adjusting Accounts DMP Chapter 3 3: 21, 26, 29, 31, 41, 54 3: 28, 32, 38, 53 Monday, September 9, 11:59 pm


(5)


Adjusting Accounts You Make the Call (Chapter 3) C3-55, 3-56, 3-57


(6)


Cash Flows DMP Chapter 4 4: 21, 22, 25, 36, 38 4: 28, 30, 34, 35, 39 Monday, September 16, 11:59 pm


(7)

Topic: Class Activities::

Cash Flows You Make the Call (chapter 4) Peabody Inc. (see Carmen); C4-56


(8)

Topic:

Review Session

Tues. Sept. 24

(9) (10)

Topic:

6:00 pm: Review Session 7:00 pm: Examination I

Tues. Oct. 1 6 pm

(11)


Accounting judgment (Phar-Mor) Video and class discussion

Tues. Oct. 1 7:45 pm

(12)


Revenues & Receivables DMP Chapter 6 6: 16, 24, 33 6: 23, 29, 34 Monday, October 7, 11:59 pm


6


(13)


Tues. Oct. 8 7:30 pm Tues. Oct. 8 8:00 pm

Revenues & Receivables You Make the Call (Chapter 6) C6-47, C6-49 Social Break Sponsored by Fisher Graduate Programs Office

(14)

Topic: Reading: Self-Study: Individual HW: HW Due Date: Team Project: Project Due Date:

Oct. 10-11

Inventory, Long-term Operating Assets, Time Value of Money DMP Chapters 7 & 8; Appendix A (pages 614-634) 7: 19, 35; 8: 13, 22; Appendix A: 3, 5, 19 7: 26; 8: 15, 16, 24; Appendix A: 4, 7, 20 Monday, October 14, 11:59 pm Cashmere Connection (see Carmen) Tuesday, November 12 (submit at 6:00 pm in class) Session 1 Exams


(15)


Inventory, Long-term Operating Assets, Time Value of Money You Make the Call (Chapter 7) You Make the Call (Chapter 8) 7-30, 7-37, 8-31, 8-35, C8-42 Inventory is a Liability—Really? (see Carmen) Deciding How Much to Pay for an Operating Asset (see Carmen)


(16)


Liabilities & Leases DMP Chapters 9 & 10 (pages 454-466 only) 9: 23, 27, 31, 32, 45 9: 28, 29, 38, 41 Monday, October 21, 11:59 pm


(17)

Topic: Class Activities

Liabilities & Leases You Make the Call (Chapter 9) 9-45, 9-57, C9-60, C9-61, 10-13, C10-45


(18)


Managerial Accounting; Cost Behavior, Activity Analysis HM Modules 13 & 14 13: 18; 14: 11, 16, 26 13: 19, 25; 14: 15, 17 Monday, November 4, 11:59 pm

Tues. Oct. 29

(19) (20)

Topic:

6:00 pm: Review 7:00 pm: Examination II

Tues. Nov. 5 6:00 pm

(21)


Managerial Accounting; Cost Behavior, Activity Analysis Managerial Decision (Module 13) 13-27, 13-30, 14-27, 14-31, 14-33, 14-34


(22)


CVP Analysis & Relevant Costs and Benefits for Decision-making HM Modules 15 & 16 15: 11, 19, 29; 16: 16, 18, 22 15: 16, 22, 31; 16: 17, 23 Monday, November 11, 11:59 pm


(23)


CVP Analysis & Relevant Costs and Benefits for Decision-making Managerial Decision (Modules 15 & 16) 15-32, 16-25, 16-26


7


(24)


Product Costing and Activity Based Costing HM Modules 17 & 18 17: 15, 21, 31; 18: 15, 20 17: 26; 18: 16, 21 Monday, November 18, 11:59 pm


(25)


Product Costing and Activity Based Costing Managerial Decision (Modules 17 & 18) 17-27, 17-32, 17-45, 18-18, 18-30, 18-32


(26)


Additional Product Costing; Pricing and Other Product Decisions HM Modules 19 & 20 19: 18; 20: 21, 26 19: 19; 20: 22, 23 Monday, December 2, 11:59 pm No class – Thanksgiving holiday

Tues. Nov. 26 Tues. Dec. 3 6:00 pm

(27)


Additional Product Costing; Pricing and Other Product Decisions Managerial Decision (Modules 19 & 20) 19-25, 19-36, 19-37, 20-24, 20-33

Tues. Dec. 3 7:45 pm

(28)

Topic:

Review Session

Wed. Dec. 11 6:00 pm

Final Examination Location: To Be Announced


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MBA 6211 – Working Professional (Thursday) Schedule: Autumn 2013 DMP = Financial Accounting, by Thomas R. Dyckman, Robert P. Magee, and Glenn M. Pfeiffer, 4

th

edition, Cambridge Business Publishers, 2014 HM = Managerial Accounting, by Al L. Hartgraves and Wayne J. Morse, 3rd edition, Cambridge Business Publishers, 2014. Thurs. Aug. 22 6:00 pm

(1)


Why Learn Accounting & Learning How to Learn Accounting A whole lot of talking by me with some demonstrations

Thurs. Aug. 22 7:45 pm

(2)


Financial Accounting Overview & Constructing Financial Statements DMP Chapters 1 & 2 1: 27, 32, 35, 38, 40; 2: 14, 19, 29, 30, 31, 34 1: 28, 30, 36, 42; 2: 28, 37, 43 Wednesday, August 28, 11:59 pm


(3)


Financial Accounting Overview & Constructing Financial Statements You Make the Call (Chapter 1) You Make the Call (Chapter 2) C1-45; 2-56, 2-65, 2-66, C2-69


(4)


Adjusting Accounts DMP Chapter 3 3: 21, 26, 29, 31, 41, 54 3: 28, 32, 38, 53 Wednesday, September 4, 11:59 pm

Thurs. Sept. 5 6:00 pm

(5)


Adjusting Accounts You Make the Call (Chapter 3) C3-55, 3-56, 3-57


(6)


Cash Flows DMP Chapter 4 4: 21, 22, 25, 36, 38 4: 28, 30, 34, 35, 39 Wednesday, September 11, 11:59 pm


(7)

Topic: Class Activities::

Cash Flows You Make the Call (chapter 4) Peabody Inc. (see Carmen); C4-56


(8)

Topic:

Review Session

Thurs. Sept. 19

(9) (10)

Topic:

6:00 pm: Review Session 7:00 pm: Examination I

Thurs. Sept. 26 6 pm

(11)


Accounting judgment (Phar-Mor) Video and class discussion


(12)


Revenues & Receivables DMP Chapter 6 6: 16, 24, 33 6: 23, 29, 34 Wednesday, October 2, 11:59 pm


9

Thurs. Oct. 3 6:00 pm

(13)


Thurs. Oct. 3 7:30 pm Thurs. Oct. 3 8:00 pm

Revenues & Receivables You Make the Call (Chapter 6) C6-47, C6-49 Social Break Sponsored by Fisher Graduate Programs Office

(14)

Topic: Reading: Self-Study: Individual HW: HW Due Date: Team Project: Project Due Date:

Oct. 10-11

Inventory, Long-term Operating Assets, Time Value of Money DMP Chapters 7 & 8; Appendix A (pages 614-634) 7: 19, 35; 8: 13, 22; Appendix A: 3, 5, 19 7: 26; 8: 15, 16, 24; Appendix A: 4, 7, 20 Wednesday, October 16, 11:59 pm Cashmere Connection (see Carmen) Thursday, November 14 (submit at 6:00 pm in class) Session 1 Exams (no classes)


(15)


Inventory, Long-term Operating Assets, Time Value of Money You Make the Call (Chapter 7) You Make the Call (Chapter 8) 7-30, 7-37, 8-31, 8-35, C8-42 Inventory is a Liability—Really? (see Carmen) Deciding How Much to Pay for an Operating Asset (see Carmen)


(16)


Liabilities & Leases DMP Chapters 9 & 10 (pages 454-466 only) 9: 23, 27, 31, 32, 45 9: 28, 29, 38, 41 Wednesday, October 23, 11:59 pm


(17)

Topic: Class Activities

Liabilities & Leases You Make the Call (Chapter 9) 9-45, 9-57, C9-60, C9-61, 10-13, C10-45


(18)


Managerial Accounting; Cost Behavior, Activity Analysis HM Modules 13 & 14 13: 18; 14: 11, 16, 26 13: 19, 25; 14: 15, 17 Wednesday, November 6, 11:59 pm

Thurs. Oct. 31

(19) (20)

Topic:

6:00 pm: Review 7:00 pm: Examination II

Thurs. Nov. 7 6:00 pm

(21)


Managerial Accounting; Cost Behavior, Activity Analysis Managerial Decision (Module 13) 13-27, 13-30, 14-27, 14-31, 14-33, 14-34


(22)


CVP Analysis & Relevant Costs and Benefits for Decision-making HM Modules 15 & 16 15: 11, 19, 29; 16: 16, 18, 22 15: 16, 22, 31; 16: 17, 23 Wednesday, November 13, 11:59 pm


(23)


CVP Analysis & Relevant Costs and Benefits for Decision-making Managerial Decision (Modules 15 & 16) 15-32, 16-25, 16-26


10


(24)


Product Costing and Activity Based Costing HM Modules 17 & 18 17: 15, 21, 31; 18: 15, 20 17: 26; 18: 16, 21 Wednesday, November 20, 11:59 pm


(25)


Product Costing and Activity Based Costing Managerial Decision (Modules 17 & 18) 17-27, 17-32, 17-45, 18-18, 18-30, 18-32


(26)


Additional Product Costing; Pricing and Other Product Decisions HM Modules 19 & 20 19: 18; 20: 21, 26 19: 19; 20: 22, 23 Wednesday, December 4, 11:59 pm No class – Thanksgiving holiday

Thurs. Nov. 28 Thurs. Dec. 5 6:00 pm

(27)


Additional Product Costing; Pricing and Other Product Decisions Managerial Decision (Modules 19 & 20) 19-25, 19-36, 19-37, 20-24, 20-33

Thurs. Dec. 5 7:45 pm

(28)

Topic:

Review Session

Wed. Dec. 11 6:00 pm

Final Examination Location: To Be Announced


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