Strategic Cost Management Module 5

Instructor:
Class meets:
Classroom:

Dan Koszalinski
Aug 6, 13, 20
Appleton Center

Phone:
E-mail:
Office hours:

Office: 920-996-1495
Cell: 920-716-1169
Dan.koszalinski@schencksc.com
By appointment and agreed upon location

Course Description and Objectives:

This course in Module 5 applies cost management theories, systems and methods to a variety of
management decision making scenarios. The objectives are to explore and understand the
following topics:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Cost management terms

Difference between financial accounting and cost accounting
Cost management flows through the organizational chart and the financial statements
Understand cost behavior
Cost-Volume-Profit Analysis (CVP)
Differential analysis in decision making
Different kinds of cost systems and cost methods
Activity based costing
The relationship of cost to capacity and quality

Course Materials:
1. Case packet (4)
2. Lanen, William N., Shannon W. Anderson, Michael W. Maher, Fundamentals of Cost
Accounting 5e. We will use this as a reference for class discussions and for cost
exercises. There is an on-line environment with student aids.
3. A calculator will be helpful.
4. A computer with MS Excel will help with exercises
Cases:
Please see the attached instructions for case preparation guidelines. They are the same as you
are used to from other Module 5 courses. Each group will complete a case presentation. When
you are not presenting, you will read the case and prepare to discuss the presenting groups
case. When not presenting, each student will complete an evaluation form for the presenting
groups presentation to be handed in after the presentation.

Class Preparation and Class Participation:

Students will attend the 3 sessions of this course. Read the required course material. Using the
on line tool Smart Book is fine. Optional readings are presented as further background into the
topic and will help you gain a fuller understanding. Read the cases so that you are familiar with
them. Basically, prepare for discussion, presentation and exercises. Proper preparation will help
make our discussions on strategic cost management come alive! I am looking forward to our
time together.
Course Schedule:
Week

Topic

Prep for class

Case
Presentations

Aug 6

Cost terms and cost

analysis

Aug 13

Cost systems and methods

Required:
Read Chapters 14
Required:
Read Chapters 6,
9
Optional:
Chapters 7-8

Preview Cases to
aid in case
presentation
Group 2 Presents

Class exercises
(Excel
templates in
Connect)
Chap 3 and 4

Chap 6 and 9

Bridgeton Industries:
Automotive Component
& Fabrication Plant

Group 3 Presents
G.G. Toys

Aug 20

Cost management control

Required:
Read Chapters
10, 18
Optional:
Chapters 16-17

Grading:
Participation, discussion and exercises
Case work (presentation and discussion)

50%
50%

Group 4 Presents
Micro Devices Division

Group 5 Presents
Johnson Beverage, Inc.

Chap 10

EMBA CASE PRESENTATION AND ANALYSIS

I. Guidelines for Case Preparation
Your case presentation should try to address the following areas if possible:
1. Problems Facing the Company
a. Statement of the problem (main issue to be resolved)
b. Order the problems (issues) according to importance
c. Relation/distinction between symptoms and problems
2. Analysis of the Case
a. State your assumptions about the company
Sales, industry outlook, economic outlook, macroeconomic
factors, etc.
b. Present the relevant data from the case (or from other sources, state
the resources)
c. Explain any financial theory/model used in your case analysis
d. Specify the analytical techniques employed in the analysis
e. Present the results of your analysis
3. Recommendations
a. Statement of recommendation (proposed solution to the main
issues)
b. Problems alleviated by the recommendation
c. Timing and method of implementation
d. Quantify the benefits and costs of your recommendation if possible
e

Suggest alternatives that might be used or investigated and why

you did not make them your primary recommendation

Since the assigned cases present a variety of financial problems, the above guidelines
may not apply to all the cases. Consequently, you should feel free to augment your case

preparation and presentation format to best suit your case. Because the cases present
complex business situations, there are often many kinds of analyses that can be
performed and several possible courses of action that can be recommended for a given
case. Also, there may be no right answer to a given case. The business problems
exhibited in the cases can be narrowed but not settled by the usual techniques of financial
analysis. A feasible course of action often requires a personal judgment (along with the
use of sound financial analysis). As such, you may take risks with your ideas (try not to
get too crazy!). The objective is to assess your ability to handle a variety of managerial
finance problems intelligently.
Your group should attempt to clarify any confusions and questions about the case with
each. Be sure to review the problem statement, relevant financial theory and analytical
techniques, or finance terminology used in your case. Such a discussion will probably
ensure that you are on the right track. The Presenting team should have a goal of 30
minutes (with maximum of 40 minutes) excluding question from the class.

II. Guidelines for Case Write-Up

Groups will submit case write ups not longer than 5 pages (due the day of the
presentation, excluding any charts, graphs, figures, etc). These guidelines are aimed at
minimizing confusions about the requirements and my expectations for case write-up. It
seems that meaningful recommendations cannot be made without a relevant financial
analysis of the company. So guidelines for case write-up should roughly follow guidelines for
case presentation described earlier. The financial analysis for case write-up is not expected to
be quite as comprehensive as that for case presentation. Please limit your discussion of the
company background to one-half page. Of course, you can discuss any additional information
that is relevant to your case. The case write-up should not exceed 5 double-spaced pages.
This 5 page limit does not include tables, references, appendix, and graphs that you may
have in your case write-up.
Additionally, A one page executive summary should be written upon completion of the
case write up (this should be stand-alone in nature - meaning that an individual could get
the basic by only reading this summary) and attached to front of the case write up (5 page
max + 1 page executive summary).
So the sections should include the following sections (or something similar):
1.
2.
3.
4.
5.
6.

Executive Summary
The Facts and the Problem(s)
Analysis of alternatives
Final Decision or Solution
Implementing the Solution
Plus any number of charts and graphs.

This write up should be submitted: as a hard copy and emailed to the Professor.

Evaluators Name (your name):

Team Being Evaluated:

EMBA Presentation Evaluation Strategic Cost Management Module 5

Presentation Materials (PowerPoint or Slides) seemed well-prepared
1
-Not sufficiently
Prepared

--

--

4
-Well
Prepared

5
Above
Expectations

Comments:

Presenters appeared comfortable and presentation seemed rehearsed

1
-Not sufficiently
Rehearsed

--

--

4
-Well
Rehearsed

5
Above
Expectations

Comments:

Presentation provided enough material from an financial management standpoint

1
Not enough
information

--

--

--

4
-Sufficient
Information

5
Pefect
Information!

Comments:
Presentation focused on only the most important material
1
-Left out too
much information
Comments:

--

--

4
-Focused on
important
information

5
Pefect
Details

Presentation is well organized

1
-Not organized

--

--

4
-Well
Organized

5
Above
Expectations

Comments:

Compare the quality of this report to the other reports.

1
Not as good
As samples
Comments:

--

--

3
-Just as good

4
-5
Better
Above
than samples Expectations