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University of Manitoba
I.H. Asper School of Business
Department of Accounting and Finance
ACC 3040 - Cost Accounting
Course Outline
Summer 2015
Instructor: Debbie Mortimer, B. Comm. (Hons), M. Acc., FCGA Summer 2015
Office: 366 Drake Phone #: 204-474-6389
Office Hours: 5:45-6:45 Tuesday/Thursday
E-mail: [email protected]
Course Objective:
The course goals are to develop an understanding of the application of strategic cost management
principles for business and not-for-profit organizations, and to provide an opportunity to develop
skills in applying these principles through exercises and cases. The management accountant’s
role is to provide timely and accurate information to assist management in achieving the firm’s
goals. This is an integrative role, which requires the management accountant to understand the
firm’s strategy, and to understand how both financial and non-financial information is developed
across all the management functions.
There are five specific goals, each of which is covered in sequence in the five parts of the course:
1) Understand the fundamentals of management accounting, including the strategic focus,
and other basic cost terms and concepts
2) Determine product costs
3) Use costs and other critical success factors in management planning and decision
making
4) Use costs and other critical success factors in operational control
5) Use costs and other critical success factors in management control
Strategic Positioning Ethics
Implementing Strategy
Product
Costing
Product Life Cycle
The Value Chain
The
Balanced Scorecard
Job Costing ABC Costing Process Cost Joint Costs Standard
Costing
Cost Estimation CVP Analysis (ABC) Master Budget (ABC) Decision
Making (ABC)
Target Costing
Life Cycle
Costing
Introduction to Cost Accounting
Strategic Positioning
Ethics
Product
Planning and
Decision
Making
Knowledge, techniques and skills learned in this course are fundamental to a successful career as
an accountant. Mastery of course materials and competencies is required to pass examinations
that lead to professional accounting designations.
Text and Website Information:
Cost Management: A Strategic Emphasis, Blocher, Chen, Cokins, Lin. McGraw-Hill. 2013. 6th
Edition. ISBN: 978-0-07-802553-2
Please note that while the text is the primary source of information for the course, class notes,
and class discussions are important. Thus, you are responsible for the text material and class
discussions for examination purposes.
For each text chapter assigned, recommended problems will be assigned. Solutions are available
on Desire 2 Learn (D2L) (see instructions below). Text questions will also be discussed in class,
so it is encouraged you bring your text to each class (see course schedule).
Course lecture notes, old midterms and final examinations can also be found on the course
website.
This course represents an extension of Managerial Accounting (ACC 1110). A review of certain
ACC 1110 materials is necessary although class time used for this purpose will be limited.
Follow the instructions below to log into D2L:
1. The Desire2Learn website address is: https://www.umanitoba.ca/d2l
2. Sign in using your University of Manitoba UMnetID. (If you do not have a UMnetID, go
to the Iridium website at: https://iridium.umanitoba.ca/ and click on Create UMnetID.)
3. From your Summer 2015 list of courses, click on ACC-3040.
Pre/Post-Class Expectations
It is expected you will have read the assigned textbook readings, lecture notes and attempted the
questions and exercises assigned for each chapter prior to class. After class you are expected to
complete the assigned problems for each chapter.
Grading:
Course grade is based upon:
5% In class group work and discussions (see schedule)
5% Group case 1 – Headquarters’ overhead cost allocation at Korea Auto Insurance, due
Thursday, May 28 at 6:55pm via D2L
10% Group case 2 - Quality Metal Services, due Thursday, June 18 at 6:55pm via D2L
35% Midterm exam, 2.5 hours, available on-line via D2L on Sunday, May 31
45% Final exam, 3.5 hours, available on-line via D2L on Saturday, June 20
For students who miss the midterm for legitimate reasons, the weight of the midterm exam will
be allocated to the final examination (ie you will be writing an 80% final examination). Absence
from exams due to illness requires a medical certificate. If you miss the midterm for non-
legitimate reasons you will be given a score of 0 (zero). There will be NO DEFERRED
MIDTERM exam privileges.
Students who miss the final exam must apply to the Undergraduate Program Office in their
faculty for possible deferred examination privileges.
Any request for re-reads of term examinations and assignments must be made, in writing, within
10 working days of the class when it was returned. The date for voluntary withdrawal is June 9.
Final grades are based on the student’s weighted mark and performance relative to other students.
The following are the tentative grade cut-offs:
Cumulative Marks Grade GPA
90-100 A+ 4.5
80-89 A 4.0
75-79 B+ 3.5
70-74 B 3.0
65-69 C+ 2.5
60-64 C 2.0
50-59 D 1.0
Below 50 F 0.0
These tentative cut-offs are subject to adjustment up or down depending on the relative
performance of the current class compared to prior classes that have taken the course with the
same instructor.
In class group work and discussions
You will be assigned to groups and through-out the term there will be in-class questions for your
group to answer and present to the class. The best 5 of 6 in class assignments will be used to
calculate your final grade.
Group Cases
During the term you will be required to prepare a response to two cases. Details will be provided
later in the term. Submission of your case can be done via Drop Box in D2L by 6:55pm on the
due date. Late submissions will not be accepted.
Group Evaluation
Each group member will evaluate each of the other group member’s performance. If all
members contributed equally to the group work (in class participation and case analyses) each
member should receive a contribution score of 100%. If one or more members did not contribute
fully he or she should be given a contribution score of less than 100% (minimum = 0%). The
grade for each member will be equal to the grade assigned for the group work, multiplied by that
individual’s average contribution score as determined by the other group members. Please
submit your evaluation of your team members via D2L ([email protected])
no later than June 21, 2015 by 4pm. Note if you do not submit a group evaluation it will be
assumed you are giving each member a 100% contribution score.
Exams
Midterm exam covers chapter 1, 2, 5-7, 11 and 13 including all class work related to these
chapters. The exam will be open from 5pm-9pm Sunday, May 31. Once you start the exam you
will have 2.5 hours to complete it. Final exam covers all course material. The final exam will
open from 9am-1pm Saturday, June 20. Once you start the exam you will have 3.5 hours to
complete it. You should ensure your computer is compatible with D2L technology, and you have
uninterrupted internet service for the duration of the exam time limit. Note, you can use the
Drake Computer lab for this task as well. All exams are to be completed individually.
Tentative Course Schedule
Date Topic Readings
May 5 Course Introduction and Review of Cost Concepts
Overview of Cost Management and Strategy
Implementing Strategy
Chapter 1
Chapter 2
May 7 Process Costing Chapter 6
May 12 Process Costing
Groups Assigned
In class group work
Chapter 6
May 14 Cost Allocation: Service departments and Joint Products Chapter 7
May 19 Cost Allocation: Service departments and Joint Products
Activity Based Management
In class group work
Chapter 7
Chapter 5 pages
142-157
May 21 Decision Making Chapter 11 (omit
appendix A)
May 26 Product life cycle, Target Costing, Theory of Constraints and
Long Term Pricing
Standard Costing: Direct Materials and Labour
In class group work
Chapter 13
Chapter 14
May 28 Group Case 1 Class Discussion – Headquarters’ overhead cost
allocation at Korea Auto Insurance
Group Case 1 Due
Standard Costing: Overhead
Chapter 15 (not
appendix A)
May 31 Midterm exam via D2L 5pm-9pm
June 2 Productivity, Marketing Effectiveness and Strategic Productivity
Analysis
Chapter 16
June 4 Productivity, Marketing Effectiveness and Strategic Productivity
Analysis
In class group work
Chapter 16
June 9 Strategic Performance Measurement: Cost Centres, Profit Centres
and the BSC
Chapter 18
June 11 Strategic Performance Measurement: Investment Centres
In class group work
Chapter 19
June 16 Management Compensation and Business Valuation
In class group work
Chapter 20
June 18 Group Case 2 Class Discussion – Quality Metal Services
Group Case 2 Due
June 20 Final Exam via D2L 9am-1pm
June 21 Group evaluation due by 4pm
ACADEMIC INTEGRITY
It is critical to the reputation of the I. H. Asper School of Business and of our degrees that everyone
associated with our faculty behaves with the highest academic integrity. As the faculty that helps
create business and government leaders, we have a special obligation to ensure that our ethical
standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. The
University of Manitoba Undergraduate Calendar addresses the issue of academic dishonesty under
the heading “Plagiarism and Cheating.” Specifically, acts of academic dishonesty include, but are not
limited to:
using the exact words of a published or unpublished author without quotation marks and without
referencing the source of these words
duplicating a table, graph or diagram, in whole or in part, without referencing the source
paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another
person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation)
without referencing the source
copying the answers of another student in any test, examination, or take-home assignment
providing answers to another student in any test, examination, or take-home assignment
taking any unauthorized materials into an examination or term test (crib notes)
impersonating another student or allowing another person to impersonate oneself for the purpose of
submitting academic work or writing any test or examination
stealing or mutilating library materials
accessing tests prior to the time and date of the sitting
changing name or answer(s) on a test after that test has been graded and returned
submitting the same paper or portions thereof for more than one assignment, without discussions
with the instructors involved.
Group Projects and Group Work
Many courses in the I. H. Asper School of Business require group projects. Students should be aware that
group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature of
group projects, all group members should exercise special care to insure that the group project does not
violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable
unless the violation can be attributed to a specific individual(s).
Some courses, while not requiring group projects, encourage students to work together in groups (or at least
do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue as
it relates to academic integrity with their instructor to avoid violating this policy.
In the I. H. Asper School of Business, all suspected cases of academic dishonesty are passed to the Dean’s
office in order to ensure consistency of treatment.
