University of Connecticut School of Business MBA Program Hartford Campus Cost Analysis (AC 5123) Fall 2008
The best thought-out plans in the world aren't worth the paper they're written on if you can't pull them off. Ralph Larsen, Chairmen and CEO, Johnson & Johnson. COURSE INFORMATION INSTRUCTOR: Wayne Bragg Office: MBA office area Office Hours: 2 pm to 6 pm, Monday. Other times are available by appointment Office Phone: 860.728.2444 (email is preferred) FAX: 203.929.9633 E-mail: [email protected]
CLASS SESSIONS: In person, beginning promptly at 6 pm, through 9 pm on Monday. A few on line sessions may be held and students will be notified well in advance. REQUIRED MATERIALS Text: Cost Accounting (13th edition) Horngren, - UConn Co-op Case packet - UConn Co-op o HBS Cases: Store 24, San Francisco Bay Consulting, Sippican Corp. (A) , and Prestige Telephone Articles (provided by Instructor): Strategic Business Value: Williams: Strategy Maps Kaplan and Norton. Other articles as necessary. COURSE OVERVIEW All organizations require that managers perform planning and controlling functions to ensure execution of tasks that enable the organization to accomplish its objectives and achieve the enterprises strategy. These functions require that managers are accountable and have the ability to access, recognize, evaluate, interpret and use information produced from the organization's accounting system. We will explore how information age organizations exploit information and apply new analytical tools to improve organizational performance. High Performing Companies excel at execution. This course will provide you with the concepts and tools to help you gain that execution advantage.
The major focus of the course is on the analysis, interpretation and application of relevant cost information rather than on the accumulation and recording functions traditionally associated with managerial and cost accounting. At a macro level, this means learning how to identify and communicate how and what resources were committed and spent and how those resources created shareholder value and supported the strategy. At a micro level it means understanding cost behavior when making decisions of capacity, efficiency, productivity and profitability. Specifically, the course will cover: Techniques of cost analysis, classification, accumulation, allocation and reporting; Use of cost information in product/process measurement and control; Use of cost information in operational and strategic decisions; Use and communication of cost information in daily problem solving, decision making; Designing performance measurement systems for organizations; Understand the behavioral and ethical considerations in management reporting. The course utilizes the case method extensively. The most important element of the course is a thorough preparation and analysis of the assigned cases associated reading materials and class participation. The learning focuses on the thought process in analyzing business situations not just on the specific solution. With cases, you are a participant not an observer and place yourself in the shoes of the decision maker. The cases in this course represent broad organizational situations and encompass many facets of a companys business model. Most will require that you expose the strengths and weaknesses of the company and in doing so you should consider the weaknesses relative to the resources required to remove the flaws. In preparing the cases here are some useful suggestions: Do not assume the business model is good or bad; evaluate each on its merits. Adopt a management posture in discussing the case and in responding to questions Evaluate the company and facts of the case in context of the strategy. Support your analysis with facts. o Most cases will not contain all the data that you might like to have. o Give the current management the benefit of the doubt when contrary data does not exist. What do I need to do well in this course? All course sessions require your active participation. You should be prepared to share your ideas as well as listen to and interpret those presented by others. You will be required to work at both conceptual and applied levels throughout the course as individuals and within small teams. All assignments should exhibit a high level of critical thinking along with a demonstrated ability to apply course concepts accurately. This means that discussions and assignments need to incorporate the appropriate concepts and principles as described in your cases and readings.
AC 323
COURSE POLICIES CASE ASSIGNMENTS A common mistake with case based courses is overly relying on group members in the learning process. This may be efficient in preparing a particular assignment but not effective for your individual learning. This mistake often manifests itself in poor exam scores. The desirable sequence is for you to read and prepare the assigned materials on your own before getting together with your study group. A final case solution should not be the work of only one or two group members CASE GRADE: Will constitute 50% (350 points) of the course grade and will be
comprised of your teams Case Write Up and Peer Evaluations.
a) Case write up - should be professional in presentation relative to structure and grammar. In team assignments, you should show that you can collaborate with group members and provide innovative and added value solutions to your group work. Case Grades will be based on the level of the teams contribution to increasing the classes understanding of the case and ability to utilize course concepts and analysis to substantively support conclusions. Characteristics of case contributions: i) Outstanding contribution Thorough preparation, grasp of concepts and ideas are substantive. Conclusions are well supported, persuasively presented. Provides one or more major insights as well as direction for the class. ii) Good Contribution Thorough preparation, grasp of concepts and ideas are generally substantive. Conclusions are supported but not persuasive and direction for the class is lacking new or important insights. iii) Unsatisfactory Contribution Preparation is not thorough and presentation is not management quality. Points are obvious, confusing or unsubstantiated. b) Case participation - is crucial to your teams case analysis and furthering class understanding. As such, characteristics of an effective case discussion follows: i) Points are relevant to the discussion and in terms of increasing knowledge. ii) Comments reflect thorough reading and preparation, listening and interpretative skills iii) A willingness to interact with other class members, test new ideas not just be safe iv) An ability to distinguish data betweens fact, assumptions or opinions c) Peer evaluations Since the performance of each team member is crucial to the overall success of the team and since most of the teamwork is done outside the classroom, I believe that team members should have the opportunity to evaluate each team members performance. To that end, the Peer Evaluation will comprise 50 points of your Team Grade. Peer Evaluation Templates are provided on Vista. To ensure a positive team experience, members should establish norms of behavior and self assess their performance mid-way in the course using the team evaluation tools on Vista and take corrective action as necessary, up to and including professor involvement. AC 323 3
INDIVIDUAL ASSIGNMENTS It is essential for you to work through the material on your own to master it and to solidify your understanding. Your class participation will illustrate your level of understanding. Assignments are due at the class session as shown in the syllabus and will be evaluated upon individual discussion which should reflect management level quality effort. Students are expected to participate in HW discussion and they will be evaluated using the same criteria as the section on Case Characteristics above. Any make up must be made in advance with the instructor. INIVIDUAL GRADE: Will contribute to 50% (350 points) of your course grade based on participation in Cases/ HW assignments, Quiz, and Final Exam scores. GRADING SUMMARY Activity Case Assignments Peer Evaluations Homework/Participation Quiz (2) Final Exam TOTAL ATTENDANCE POLICY Since this is a case based course that involves a significant amount of team work, and frequent in-class discussions that require your participation it is expected you attend class unless emergencies prevent you from doing so. To that end; class participation will count 15% of your course grade. You are expected to notify your instructor in advance of any absences. Failure to attend and participate in classes will result in a reduction to your course grade ACADEMIC INTEGRITY As a member of the University community, you are required to obey the rules and regulations outlined in the Student Code. Academic Integrity is particularly relevant to your work as an MBA student. As stated in the Student Code handbook (2001, p 11), A fundamental tenet of all educational institutions is academic honesty; academic work depends upon respect for and acknowledgement of the research and the ideas of others. Misrepresenting someone elses work as ones own is a serious offense in any academic setting and it will not be condoned. Academic misconduct includes, but is not limited to, providing or receiving assistance in a manner not authorized by the instructor in the creation of work to be submitted for academic evaluation (e.g. papers, projects, and examinations). . . In addition, a student who knowingly assists another student in committing an act of academic misconduct shall be equally accountable for the violation, and shall be subject to the sanctions and other remedies described in the Student Code. The full version of code is available at http://www.dosa.uconn.edu/student_code.html And Appendix B: Academic Integrity in Graduate Education in Research. Total Points 300 50 100 150 100 700 Team Pts. 300 50 Individual Pts. 100 150 100 350
350
AC 323
Important Note: During the period in which Quizs and or the Exam have been made available by the instructor, discussion with anyone other than the instructor on any course materials could be considered as receiving unauthorized assistance. Anyone means anyone in the universe
AC 5123 (10291) Fall 2008 Class Schedule
Date
Aug 25 Sep 1 Sep 8 Sep 15 Sep 22 Sep 29 Oct 6 Oct 13 Oct. 20 Oct 27 Nov 3 Nov 10 Nov 17 Nov 24 Dec 1
Chapter readings, Quizs, Case assignments
Introduction, Course Overview, expectations, teaming Chapter 2: Cost Terms and Purposes NO CLASS Labor Day Chapter 3: Cost Volume Profit Analysis HBS Case: Prestige Telephone (In person and On-line Discussion) Chapter 4: Job Costing Chapter 5. Activity based Costing/Management HBS Case: Sippican (Class Discussion In Person) Chapter 6: Master Budget /Responsibility Accounting HBS Case: Sippican (Paper Due) Chapter 7: Flexible Budgets, Direct-Cost Variances Team self assessments due as needed Quiz I Posted (Chapters 3 6) Chapter 9: Capacity Analysis (pgs. 309- 317) Case: Judds Reproduction Submit Budget Analysis Chapter 11: Decision Making Relevant Information Chapter 12: Pricing Decisions/Cost Management Chapter 13: Strategy, Balanced Scorecard Chapter 13: Strategy, Balanced Scorecard HBS Case: Store 24 Balanced Scorecard (Class Discussion) Chapter 22: Management Control Systems, Transfer Pricing HBS Case: Store 24 Balanced Scorecard (Present) Quiz II Posted (Chapters 7, 9, 11, 12 ) Chapter 14: Cost Allocation Theory ( thru page 498 ) NO CLASS Thanksgiving Recess Chapter 14: Profitability/Sales Analysis (pg. 498- 513) HBS Case: San Francisco Bay Consulting (Class Discussion)
Homework
Read/Review Syllabus Skim Chapters 2, 3
Strategic Business Value (H) 2.18, 21, 3.43 (H) 3.49 Prestige Assignment (H) 4.32, 33 ABC Article (TBD) 5. 21, 27 (H) 6. 20, 24, 28 (1a-e) Budgeting Article (TBD) Judds Assignment (H) 9.39, 40 Target Costing Article H) 11.37, 39 (H) 12.29, 33 - 13.35 Strategy Maps
(H) 22. 30,31
AC 323
Dec. 8 Dec 14
HBS Case: San Francisco Bay Consulting (Presentation) Review for Final Exam Exam Provided Final Exam Due
(H) 14.27, 29 STUDENT EVALUATIONS PEER REVIEWS
*Final exam (take home) must be submitted midnight Dec. 14
AC 323
