R.C. Bob Nichols, CMA

1
R.C. (Bob) Nichols, CMA

• rnichols_at_bcit.ca
• 604-987-1423
• MA1
• MA2

2
MA 1

• Text Managerial Accounting Concepts for
  Planning, Control, Decision-Making
• Garrison/Noreen/Chesley/Carroll
• 4th Canadian Edition
• McGraw-Hill Ryerson

3
Course Materials Provided

• Text
• Assignment Marker Kit
• Disk with text review questions for students
• CD ROM
• Publishers Web Site

4
CD ROM

• Lesson notes
• Objectives of lesson
• Assigned readings
• Summary of readings
• Appendix to readings - further discussion of
  topics

5
CD ROM

• Power Point Presentations
• Templates (Excel) for sample problems with
  solutions
• Review problems (from text) with solutions
• Practice Exam with solutions
• Prior Exams (web)

6
Look at Samples of

• Lesson notes/Appendixes
• Power Point presentations
• Review problems
• Practice exam
• Prior years exams

7
Web Site

• www.mcgrawhill.ca/college/garrison5/
• Password available from publisher (on-line)
• Student resources
• Instructor resources

8
1) Student Resources

• Plant Tours
• Spreadsheet templates
• Power Point slides
• Errata
• Glossary
• Study aids

9
f) Study Aids

• Key terms searchable glossary
• Chapter learning objectives
• Chapter summaries
• On-line quizzes
• Internet and group exercises
• Plant tour discussion questions

10
2) Instructor Center

• Downloadable supplements
• Solutions manual
• Resource manual
• Power Point slides

11
Student Expectations

• What the students have
• What the students want/need

12
1) What the students have

• Lesson notes
• Text
• Assignments ? marked
• Review questions (true/false, multiple choice)
• Lesson objectives
• Review problems/solutions

13
1) What the students have

• (contd).
• Practice exam/solutions
• Prior years exams/solutions
• Power Point presentations of major concepts
• Templates (excel) for sample problems/solutions

14
What the students want/need

• Areas of student difficulties
• Alternative explanations (from text, etc.)
• The whys not just the hows
• Real-life examples
• Problems/solutions to illustrate
• Alternative types of problems
• Practice, practice, practice!!!!

15
2) What the students want/need

• Contd.
• Exam writing skills
• Problem analysis
• Time allocation
• Multiple choice
• True/False
• Etc.

16
2) What the students want/need

• Alternative learning methods
• Reading/Writing/Seeing
• Applying the concepts
• Group discussion
• Doing
• Doing it wrong
• Doing it right

17
What we need to do

• Provide opportunities
• Read/write/see
• Interactive Learning
• Discussion of the issues
• For students to try to do it
• Learn from their mistakes
• Improve their skills

18
Instruction Strategies

• Lectures
• Use of lecture notes
• Apply the concepts
• real-life examples
• Problem solving
• Encourage discussion/questions

19
What we need to do

• Seek out alternative methods
• Small group work
• Videos Plant Tours
• On-line review self-testing, etc.
• Seek out alternative resources
• Publishers, business, etc.
• Share our resources/ideas

20
MA1 Course Content

• Lesson 1
• Basic concepts of management accounting
• Lesson 2
• Job-order costing excel
• Lesson 3
• Process costing
• Weighted average/FIFO
• Shrinkage/spoilage
• Appendix

21
MA1 Course Content

• Lesson 4
• Cost behaviour and cost-volume-profit analysis
• Sensitivity analysis
• Lesson 5
• Activity-based costing and service department
  costing
• Cost allocations
• Appendixes (3)

22
MA1 Course Content

• Lesson 6
• Absorption and variable costing and budgeting
• Appendixes (4)
• Lesson 7
• Standard costs for materials, labour, and
  variable overhead
• Appendixes (3)

23
MA1 Course Content

• Lesson 8
• Flexible budgets and decentralization
• ROI/RI
• Lesson 9
• Relevant costs for decision making and inventory
  management
• Appendix

24
MA1 Course Content

• Lesson 10
• Pricing
• trends in management accounting
• Appendixes (2)

25
MA2 Course Coverage

• I Short-run Decisions
• II Complications to Short-run Decisions
• III Capital Budgeting
• IV Contemporary Approaches to Product Costing
•  

26
MA2 Course Coverage

• V Activity-Based Management 
• VI Agency Theory
• VII Transfer Pricing
• VIII Ethical Considerations

27
I Short-run Decisions

• Relevant information
• Special order decision
• Outsourcing (make or buy)
• Adding/dropping a product line
• Joint products sell or process further?
• Limited resource decisions

28
II Complications to Short-run Decisions

• Valuation of inventory
• Effects of overhead allocations
• Capacity costs

29
III Capital Budgeting

• Payback method
• Accounting Rate of Return
• Discounted Cash Flow methods
• Net Present Value
• Internal Rate of Return
• Performance Evaluation Conflicts

30
IV Contemporary Approaches to Product Costing

• Total-Life Cycle product costing
• Target Costing
• Kaizen Costing
• Cost of Quality
• Benchmarking

31
V Activity-Based Management 

• Purpose of ABM
• Steps in ABM
• Evaluation of ABM
• ABM and other management techniques
• TQM
• Process re-engineering
• Benchmarking, etc.

32
VI Agency Theory

• Introduction to agency theory
• Basic building blocks
• Executive compensation contracts
• Participative budgeting
• Internal labour markets
• Agency and ABM
• Agency and Strategic Planning

33
VII Transfer Pricing

• Responsibility accounting
• Economic value added
• Transfer pricing

34
VIII Ethical Considerations

• Trust, ethical behaviour and the accountant
• Markets and the role of ethics
• Creation and enforcement of behavioural norms

35
Sample Lesson

• Lesson 3
• Lesson notes
• Quizzes
• Review problems