ACC 387.

1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Lecturer
Mr. Russell Hirsch

Russell.Hirsch@mccombs.utexas.edu
Office: CBA 6.202
Phone: 413-2996

Office Hours: M 11:00 to 12:00 and by appointment

Teaching Assistant
Vaibhav Goyal

vaibhav.goyal@mba05.mccombs.utexas.edu
Syllabus Contents
Class Content and Objectives
About the Lecturer
Learning Approaches
Course Materials
Grades
Case Preparation Guidelines
Policy on Scholastic Dishonesty
Policy on Student Privacy
Students with Disabilities
Coursepack Index
Class Content and Objectives
This course will provide you with the technical skills necessary to influence people to take the
actions that improve an organizations profits, cash flow and ultimately its value. Organizations
rely on people with management accounting skills to provide the analysis and recommendations
to plan the future, track performance and provide financial discipline to decision-making. This
role is critical to the success of any organization.
Software applications and cheap storage have allowed companies to collect and retain an
enormous amount of data. This course will help you identify which data is needed for a particular
purpose and how to use the data to deliver value-added information. Data is not limited to
traditional financial data. In fact, relevant and impactful information is often unrelated to data used
for Generally Accepted Accounting Principles (GAAP) financial reporting. We will explore how to
utilize both financial and non-financial data to achieve a companys strategic objectives and
tactical goals.
Upon completion of this course, students should understand:
How cost information can assist in making financial sound decisions and achieving desired
financial performance
What impact activities and decisions have on cash
When financial versus non-financial metrics are appropriate
The benefits and limitations of traditional cost accounting systems and emerging practices
Financial planning and control system techniques and their impact on behavior
Page 1 of 10

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
It is not enough to know the right answer. As in any discipline, your effectiveness depends upon
your communication abilities. You will only earn respect and achieve the desired results when you
are consistently:
100% accurate;
Timely;
Concise and to the point; and,
Capable of explaining the technical underpinnings of your conclusion.
During the course, students will have the opportunity to practice their communication skills,
especially in the area of delivering information in a concise and relevant manner.
The true benefits of this course will be clear in your first job after school. When a senior executive
stops you in the hallway and asks what do you think about.... you should be able respond
confidently and succinctly using fact-based information in a technically correct manner. It is often
your ability to respond to these chance encounters that create desirable career opportunities.
About the Lecturer
Mr. Hirsch received his BA in Business Economics from the University of California at Los Angeles
and began his career as an Auditor for Price Waterhouse. He continues to maintain his Certified
Public Accountant license and membership in the American Institute of Certified Public
Accountants. He earned his MBA from The Anderson School at UCLA.
Mr. Hirsch has spent most of the last twenty years providing management consulting to improve
corporate performance and value. His engagements have spanned a wide range of disciplines
including strategic business planning, financial modeling, capital procurement, customer
development, business process improvement, working capital optimization, branding and equity
valuation. Several of these engagements required full-time management positions, primarily as
Chief Financial Officer. These on-line services were performed for a wholesale distributor, a
grocery store chain, an apparel manufacturer, marketing services firms and business software
companies. Most recently, Mr. Hirsch was Chief Financial Officer of Alistia, a direct marketing
software and services company. His current business activities include developing apartment
communities for low-income families.
Learning Approaches
This course will employ a variety teaching methodologies:
Textbook chapters and additional readings will be used to introduce concepts, accounting
language and analytic methodologies
Homework for topics to be completed prior to an upcoming class are assigned to help
solidify your understanding of new information and generate questions for the upcoming
class
Lectures and presentation slides will summarize, reinforce and expand upon the
information covered in the reading and homework assignments.
Student questions and discussions during lectures will assist everyone to confirm their
understanding of the content
Page 2 of 10

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Cases help illustrate the complexities of applying the information in real world settings
Students are encouraged to work on and discuss homework and cases in groups to share
knowledge with and learn from each other; however, each student must do their own work.
Guest lecturers offer a dose of real world application and unique viewpoints of course
topics
The text site: http://myphlip.pearsoncmg.com/index.cfm/ has chapter summaries and
various online test banks to test and confirm your knowledge
The course website, located at http://courses.utexas.edu/, will be used to communicate
course information, publish class presentation slides and problem solutions, and hold
online group discussions, which the lecturer may from time to time contribute to. You will
then need your UT EID and password to login

Course Materials
This course will utilize: Horngren, C.T., G. Foster, and S. M. Datar. 2003. Cost Accounting: A
Managerial Emphasis. 11th Edition. Prentice-Hall. ISBN: 0-13-064815-9. (Available from
nearby campus bookstores).

ACC 387.1 Fall 2004 Coursepack - available from GSB Copy Center. The Course Pack Index
is included as an addendum to this syllabus.

Grades
Grades will be calculated using the following weighting:
Homework
13%
130 points
Case summaries
12%
120 points
Mid-term Exam
30%
300 points
Final Exam
35%
350 points
Class Participation
10%
100 points
Total
100% 1,000 points
Based upon past experience, I expect the final grades in this course to be approximately 45% A,
50% B and 5% C. These percentages may be changed at my discretion and exam results may be
curved to approximate this distribution
Homework and case write-ups are due at the start of each class session. Late submission will not
be accepted. You are encouraged to prepare with other students, but the work turned in must be
your own. Credit for homework is given based upon completeness and effort rather than
correctness. You will want to make a copy for your work for use during class. You may miss one
homework assignment and still get all possible points for homework.
The midterm exam will be cumulative to the date given. The final exam will focus primarily on
learning objectives covered since the midterm.
Your learning experience depends upon active communication in class. You cannot participate if
you do not attend class. You cannot participate meaningfully if you have not read the assigned
material and prepared assignments in advance. You are expected to ask questions, participate in
discussions and debates and share your experience with the rest of the class.

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ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Homework Preparation
Instructional case assignments will be reviewed in class. However, I generally expect not to review
in class the assigned practice problems from the textbook. These practice problems are assigned
to help you independently understand computational exercises as you prepare for each class.
Suggested solutions to all assigned practice problems are available on the course website after
the class in which they are assigned.
Solutions to suggested exam study problems will also be posted on the class website. For more
practice, you can purchase the "Student Guide and Review Manual" from nearby campus
bookstores and/or access on-line multiple choice questions from the Prentice-Hall Companion
Website. The Guide contains, among other things, sample problems with solutions. To preview
some of the exercises in the "Student Guide and Review Manual", you can go to the Prentice-Hall
Companion Website (see address below) and follow the instructions to register yourself as a user
of the HFD text. Once you are registered, click on the appropriate link to any chapter of the text
and then click on "Study Guide" in the left panel (if available for that chapter). You will then see a
list of hyperlinks to the Study Guide materials available for that chapter. The Prentice-Hall
Companion Website address is: http://myphlip.pearsoncmg.com/index.cfm
Case Preparation
For selected cases, each student shall prepare a word processed executive summary, which must
be turned in at the start of the assigned class. Executive summaries shall be no longer than three
typed pages (12 point, single spaced, with 1 margins.). Any financial analysis or graphical charts
must be imbedded in the text. Your summary should show evidence of thoughtfulness and should
persuade executives that your analysis is accurate and that your recommendations are
appropriate. The clarity and quality of your writing (spelling and grammar) and graphics (clear
labeling) count. Quality executive summaries require the development of at least one draft prior to
the final version. Editing your rough draft should include eliminating comments that are not
relevant to the issue at a hand, combining sentences to achieve brevity and conciseness, and
organizing thoughts in a logical and persuasive manner. Executive summaries should cover the
following information:
Situation analysis with specific identification of problem/opportunity
Alternative courses of action
Analysis and assessment of alternatives
Recommendation and ramifications
This is a general format. You should use your judgment to select an alternative format based
upon the nature of a particular case.
Policy on Scholastic Dishonesty
The McCombs School of Business has no tolerance for acts of scholastic dishonesty. The
responsibilities of both students and faculty with regard to scholastic dishonesty are described in
detail in the Policy Statement on Scholastic Dishonesty fro the McCombs School of Business. By
teaching this course, I have agreed to observe all faculty responsibilities described in that
document. By enrolling in this class, you have agreed to observe all student responsibilities
described in that document. If the application of that Policy Statement to this class and its
assignments is unclear in any way, it is your responsibility to ask me for clarification.
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ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Policy on Scholastic Dishonesty: Students who violate University rules on scholastic dishonesty
are subject to disciplinary penalties, including the possibility of failure in the course and/or
dismissal from the University. Since dishonesty harms the individual, all students and the integrity
of the University, policies on scholastic dishonesty will be strictly enforced.
You should refer to the Students Judicial Services website at http://www.utexas.edu/depts/dos or
the General Information Catalog to access the official University policies and procedures on
scholastic dishonesty as well as further elaboration on what constitutes scholastic dishonesty.
Policy on Student Privacy
A web-based, password-protected class site is available for this course. This syllabus, handouts,
assignments, class presentations and other resources may be available within this site. Site
activities include exchanging emails, engaging in class discussions and chats, and exchanging
files. In addition, class email rosters will be a component of this site. Students who do not want
their names included in these electronic class rosters must restrict their directory information in
the Office of the Registrar, Main Building, Room 1. For information on restricting directory
information see: http://www.utexas.edu/student/registrar/catalogs/gi00-01/app/appc09.html
Students with Disabilities
The University of Texas at Austin provides upon request appropriate academic accommodations
for qualified students with disabilities. For more information, contact the Office of the Dean of
Students at 471-6259, 471-4641 TTY.
Course Packet Index
CP#

Class
Date

01
02

09/22
10/13

03

11/17

04
05
06
07
08
09
10
11

09/08
09/15
09/22
10/06
10/27
11/17
11/24
11/24

Title
Reengineering Work: Dont Automate, Obliterate
Working Capital Management: Lessons from the Leaders, A Summary of Presentations at CFO
Magazines Working Capital Conference
Using the Balanced Scorecard to Manage Value in Your Business, Michael Contrada, Balanced
Scorecard Report Article, HBSP #B0001C
Hollydazzle.com, HBSP #100-066
La Normandie
Wilkerson Co., HBSP #101-092
Colorscope, Inc. HBSP # 9-197-040
Cafes Monte Bianco: Building a Profit Plan, HBSP #198-088
Wells Fargo Online Financial Services (A), HBSP #9-198-146
Sub-Micron Devices, Inc., Stanford University #A170
Bridgeton Industries HBSP # 9-190-085

Page 5 of 10

08/25

08/30

09/01

09/08

09/13

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Business
Ch. 1
None
Measuring 1. Understand class requirements
measurement
performance 2. Know the difference between f
accounting
3. Appreciate the three factors tha
4. Give examples of information f
decision-making
What is a cost?
Ch. 2
2-18, 22,
Three Dog 1.
Define a cost and a cost obj
28
Bakery (end 2.
Distinguish between direct
of chapter 2)
controllable and uncontrollable
3.
Explain the behavior of fixe
and on a per-unit basis
4.
Differentiate between inven
5.
Describe categories of inve
cost of goods sold in a manufac
Cost-Volume-Profit
Ch. 3
3-18, 23,
1.
Know the assumptions and
analysis
46, 47
2.
Distinguish between gross
margin
3.
Compute contribution ratio
breakeven sales dollars
4.
Determine breakeven and o
and contribution margin approa
5.
Apply CVP analysis to dete
from changes in fixed expenses
price and sales volume
6.
Understand how income tax
7.
Apply CVP with multiple p
Predicting and
Ch. 10
HollyDazzle 1.
Know the optional ways of
managing costs
*
2.
Explain the role of cost stru
3.
State the pros/cons of high
4.
Know the importance of a c
5.
Describe alternative, non-li
6.
Describe the learning curve
Product costing

Ch. 4

4-18, 21,
35

1.
2.
3.
4.

09/15

Product costs and

pricing

Ch. 12

La
Normandie
(CP)

5.
6.
1.
2.
3.
4.

Page 6 of 10

Describe the building block

Distinguish between job an
Compute a predetermined o
use in job-shop and batch produ
Discuss the cost-benefit iss
timeliness in accounting for ove
Diagram the two-stage allo
Know how to account for o
Understand alternative pric
Appreciate the criteria in de
price
Define and give examples o
Apply the concepts of cost

09/20

09/22
09/27

09/29
10/04
10/06
10/11
10/13
10/18

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Activity Based
Ch. 5
5-24, 25,
Applewood 1.
Give an example of how tra
Costing
35
5-39
product costs
2.
Explain why selecting appr
important
3.
Describe a four-part cost hi
4.
Know how ABC systems w
identification of activity cost po
5.
Discuss applications for thr
products, customers and depart
Activity based cost
CP #1
Wilkerson & 1.
Explain the concept of two
management
Co.*
2.
List and explain steps in eli
costs
Absorption costing
Ch. 9 and
9-18, 36
1. Distinguish between throughput
and costing of by16
16-16, 17,
costing
products
24. 31
2. Calculate differences in operatin
and variable costing
3. Identify the split-off point in a j
4. Allocate joint costs using severa
5. Account for by-products using t
Process Costing
Ch. 17
17- 19, 20,
Nantucket
1. Describe the five steps in proce
21, 22, 42
Nectors
2. Calculate and use equivalent un
(text)
3. Use weighted-average and FIFO
Costing in practice
Guest
None
Cost Accountant from National Ins
Lecturer
Midterm
The cost of excess
Ch. 18
None
1.
Distinguish between spoila
capacity and rework
Ch. 19
2.
Recognize the limitations o
3.
Know how to account for e
Managing for quality
Colorscope, 1.
Understand how to include qu
Inc.*
improvements into decision mak
Cash is king
None
1. Appreciate the impact of cash
2. Understand the cash conversio
merchandising and manufactu
3. Illustrate the profit wheel, cash
4. Define working capital
5. Project future cash balances ba
payable activity assumptions
6. Calculate cash conversion rati
days sales outstanding, days in
payable outstanding

Page 7 of 10

10/20

10/25

10/27

11/01

11/03

11/08

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Working capital
Ch. 20 and 20-19
Dell
1.
Describe negative working
management
CP#2
Dell
Computer
during sales growth and decline
questions
Corporation 2.
Discuss methods for accele
(BB)
receivable
3.
Discuss methods of reducin
4.
Calculate and explain Econ
Master budgeting
Ch. 6
6-40
1.
Construct an income statem
balance sheet, capital expenditu
based upon given assumptions
2.
Identify assumptions requir
budget
3.
Discuss the behavioral issu
4.
Explain the importance of w
examples
Financial planning
Cafes Monte 1.
Compare financial results o
Bianco:
2.
Understand financial constr
Building a
them
Profit Plan* 3.
Determine optimal operatin
assumption
4.
Appreciate the need to chal
perform sensitivity analysis
Flexible budgets and Ch. 7
7- 18, 27,
1.
Distinguish between a static
product cost
29, 40
2.
Compute flexible budget va
variances
variances
3.
Compute price and efficien
4.
Discuss pitfalls in using a s
incentives
5.
Explain how to perform var
systems
Variance analysis
Ch. 8
8- 29, 35
Teva Sport 1.
Identify the features of
Ch. 14
14-32, 33
Sandals
2.
Compute the variable o
(pgs 498(text)
spending variances
503)
3.
Compute and interpret
variance
4.
Calculate the sales-mix
variance, market share variance
Internal accounting
Guest
None
1. Give examples of accounting co
controls and auditing lecturer
intellectual assets and informati

Page 8 of 10

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
11/10
Responsibility
Ch. 22
22- 20, 33,
1.
Give an example of a co
accounting & transfer CP #3
35
and an investment center
pricing
2.
Define goal congruence
3.
Explain transfer pricing
evaluate them
4.
Calculate transfer price
5.
Discuss pros/cons of alt
methods
11/15
Performance
Ch. 23
23- 16, 18,
1.
Design an accounting based
measurement
22, 31
2.
Analyze ROI using the DuP
3.
Discuss the pitfalls of using
alternatives
4.
Use the residual income me
5.
Describe economic value ad
6.
Calculate EVA
11/17
Balanced scorecard
Ch. 13 and
Wells Fargo 1.
Know how companies crea
CP#4
Onlin 2.
Describe how strategies can
e
plans into actions
Fina 3.
Present the four perspective
ncial 4.
Describe the benefits of fin
Servi
measures
ces*
11/22
Decision making and Ch. 11
11- 16, 22,
Store 24
1.
Describe six steps in the de
relevant information
25, 28, 29
(text)
managerial accountants role in
2.
Explain the relationship bet
quantitative analysis in decision
3.
List tow criteria that must b
information
4.
Define and give examples o
cost, unit costs, differential cos
5.
Explain how people tend to
opportunity costs and sunk cost
11/24
Special orders &
Sub-Micron 1.
Prepare analysis of various
Make versus buy
Devices and
identifying the relevant costs an
Bridgeton
2.
Set prices in special-order o
Industries*
situations by analyzing relevan
11/29
Outsourcing
Guest
None
1. Discuss the pros and cons of ou
lecturer
qualitative and quantitative asp
12/1
Class summary
None
1. Use the factors of good control
class measurement system.
12/14
Final Exam
9am
12pm
* Case is included in the course pack. An executive summary of the case required to be turned in
before the start of class

Page 9 of 10

ACC 387.1 - Introduction to Managerial Accounting

Unique 02475, MW 8:00 to 9:30, UTC 1.130
Course Syllabus
Course Pack Reading Materials
1. Reengineering Work: Dont Automate, Obliterate
2. Working Capital Management: Lessons from the Leaders, A Summary of Presentations at CFO Magazines
Working Capital Conference
3. Using the Balanced Scorecard to Manage Value in Your Business, Michael Contrada, Balanced Scorecard
Report Article, HBSP #B0001C

Page 10 of 10