ACC361E: PERFORMANCE MANAGEMENT - PageOut

IESEG – SCHOOL OF MANAGEMENT (LILLE)
ACC361E: PERFORMANCE MANAGEMENT
COURSE SYLLABUS – AUTUMN 2009
Teachers:
Timetable:
Web Site:
Ben Gibbs, email: b.gibbs@ieseg.fr
Julien Margaine (Room A.325), email: j.margaine@ieseg.fr
Anne-Catherine Moursli (Room A.327), email: ac.moursli@ieseg.fr
About three interactive course hours every week (lecture + tutorial)
In total, 39 contact hours + “Mission en Contrôle de Gestion” (~ 30 h).
http://acmoursli.europe.pageout.net/. All information concerning the
course will be published there: syllabus, schedule, additional material,
PowerPoint slides, quizzes as well as text solutions. CHECK IT
REGULARLY!!!
I. COURSE OBJECTIVES
The central objective of this course is to familiarize you with how cost management systems
can be designed to measure and manage performance as well as to support managerial
decision-making. The primary principle of cost management is that costs don't just happen -
management decisions cause them. It is thus important to be aware of the cost and
organizational effects of alternative management decisions. It is also essential to learn to
interpret and identify opportunities and methods for improving costs and performance.
This course is designed to help you develop an understanding of how cost accounting
information can help an organization function more effectively, let you apply that knowledge
through working on problems, and help you become discriminating producers and users of
management accounting information.
II. PREREQUISITES
Students who sign up for this course should have basic knowledge of accounting
principles. It is also imperative that they are willing to prepare and read the required
material on their own before each session. The ability to participate, interact and ask
critical questions is essential for success in this course
III. REQUIRED MATERIALS
• Cost Management: Strategies for Business Decisions, 4 ed., Ronald Hilton, Michael
Maher, and Frank Selto, Irwin McGraw-Hill, 2008.
This book has a web site with helpful information: http://highered.mcgrawhill.com/sites/0073526800/student_view0/index.html.
It contains additional resources,
exercises, PowerPoint slides, self-test problems and multiple choice quizzes for each
chapter.
• Additional supplementary material (e.g. cases, videos, reading) will be provided, in
addition to the textbook material. You will be responsible for this reading.
• A simple calculator that cannot store formulas. All others will be confiscated during tests.
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IV. CLASS DEVELOPMENT AND MODE OF INSTRUCTION
This course will rely heavily on problem solving as the main pedagogical tool.
A typical class will cover one or two chapters and will involve discussing the new
concepts/techniques and solving the “suggested” end-of-chapters review questions or critical
analysis as well as end-of-chapters exercises. You are expected to attempt the remaining
suggested exercises after attending the class. It is your responsibility to go over the solutions
to problems, ask questions and get your doubts clarified on an on-going basis with your
teacher. To encourage participation, you will be asked to answer specific questions during the
discussion. You are therefore expected to have read ALL material and do homework assigned
for the day before attending the class (see VII. Class schedule).
V. COURSE POLICIES
Attendance is very important with this material and will be taken into account for the
student's final grade. If you do not want to be penalized contact us beforehand
regarding any work or emergency situations that will prevent you from attending
class.
Students are expected to arrive for class on time. Professors reserve right to refuse
entry to students who arrive late.
As preparation for each lecture students are expected to have read the assigned
chapters and completed homework assignments prior to class work. Students will be
expected to be able to present homework assignments to the class on an ad hoc basis
(this means you will be called upon). Students are expected to actively participate in
class activities.
Students are expected to bring the textbook and a calculator to EACH class. Students
will turn off all cell phones and/or beepers prior to coming into class.
VI. GRADE BREAKDOWN
The grading system is as follows:
Performance Management (54 hours) Points Credits
1- Exams: 60 5,5
- Midterm Exam (Part 1: Cost Accounting) 30 2,25
- Final Exam (Part 2: Management Control Systems) 30 3,25
2- Continuous assessment:
- MCQ / exercises
- Participation
Total 100
“Mission en Contrôle de Gestion” (~ 30 hours) 2,5
30
10
40
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1. Exams (60 points)
There are two exams: one covers “Cost Accounting” (Part 1) and the second one covers
“Management Control Systems” (Part 2). Those two exams are not cumulative and they will
be closed book. You may expect exams to cover ANY material presented in class, the text,
homework assignments, quizzes, exercises/problems/cases, readings, videos,
CrossKnowledge modules and class discussions. Exams may consist of exercises, problems,
cases and/or short essay questions.
2. Continuous assessment (40 points)
* Multiple Choice Quizzes / exercises (30 points)
For each of the two parts of the course, you will have three graded quizzes and/or exercises.
You will not be told in advance when you will be assessed. Be prepared for a graded
assignment, based on the prior reading, at any time. In case of absence, you will have zero.
At the end of each part, we will get rid of the worst mark and keep the two best continuous
assessment grades.
* Participation (10 points)
Participation will be based on homework assignments as well as active class attendance.
Class attendance and participation are vital to the learning experience, as is being prepared for
class. Your contribution in class will be based on active, quality and regular participation.
We expect you to be at each lecture and tutorial having read the material or prepared the
recommended exercises and ready to participate in the day's discussions and exercises. We
encourage you to ask questions (NO question is a “bad” question), seek our help when you
need it, and help your classmates understand the material. Your attitude is also of the utmost
importance. Students who consistently display a constructive attitude to learning and a
positive mindset will be rewarded in their participation grade.
Please be in class on time. If you have to be away from class and you don’t want to be
penalized for missing the class, notify us ahead of time, just as you would if this class was
your job.
VII. CLASS SCHEDULE
Daily assignments will be announced in class. The following schedule is tentative and may be
adjusted as the course progresses. Any changes to the schedule will be announced in class
and/or on the PageOut website and by email.
Week
Chapter and Topic
36 PART 1: COST ACCOUNTING
COURSE INTRODUCTION (1h30):
- “The role of management controller”, by Grégoire Batut
(Eurovia).
- Presentation of the Management Control Project (“Mission
Contrôle de Gestion”)
36-37 LECTURE 1 (1h30): Chap.1- Cost Mgmt and Mgmt of the Value
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Chain
Learning Objectives:
1- Differentiate management accounting from financial accounting and
cost management
2- Explain how cost management helps organizations meet their strategic
goals by proactively managing costs rather than passively measuring costs.
=> Definition of Cost Mgt, Cost Mgt Systems
3- Apply cost-benefit, value-chain, and variance analysis to consider and
evaluate changes to an organization’s value chain.
37-38 LECTURE 2 (3h00): Chap.2- Product Costing Systems
Learning Objectives:
1- Explain the role of product costs, period costs, and
expenses in financial statements.
2- List the components of manufacturing cost, and
diagram their flow through a production process.
=> Definition of Direct Material, Direct Labor, Mnfg OH, Cost Driver,
Activity.
3- Explain how unit-level, variable, fixed, step, mixed, and nonlinear costs
differ.
4- Discuss the importance of CM of understanding
opportunity costs, sunk costs, committed costs, direct
costs, and indirect costs.
5- Prepare income statements using absorption and variable costing.
Chap.11- Cost Estimation (pp. 421-423)
Learning Objective:
Graph the following basic cost patterns: variable, fixed, step (semifixed),
mixed, and nonlinear.
38-39 LECTURE 2 (3 hours) (Cont.)
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39-40 LECTURE 3 (3h00): Chap.8- Process-Costing Systems
Learning Objectives:
1- What organizations should use process costing or
job costing.
2- Why is process-costing information useful for
decision making.
3- Use the five-step method to assign process
costs to products.
=> Definition of Equivalent Unit Concept.
4- Assign process costs to products using weighted
average costing.
5- Assign costs to products using first-in, first-out
(FIFO) costing.
6- Analyze and manage spoilage.
Chap.10- Managing and Allocating Support-Service Costs
Learning Objectives:
1- Explain the importance of managing support
service costs and the reason these costs are
allocated.
2- Understand how to choose appropriate allocation
bases.
3- Allocate support-service department costs using
the direct, and step methods.
4- Evaluate the consequences of alternative cost
allocation methods.
40-41 LECTURE 3 (1h30) (Cont.)
LECTURE 4 (1h30): Chap.4- Activity-based Costing Systems
Learning Objectives:
1- Describe how traditional costing could lead to undercosting or
overcosting products.
2- Discuss the four ways used in activity-based costing system.
3- Identify the different level of resources and activities used in
production processes.
4- Estimate the cost of activities and calculate a cost driver rate.
5- Assign activity costs to goods and services.
6- Analyze the profitability of products and customers.
41-42 LECTURE 4 (3 hours) (Cont.)
43 Mid-term Exam (Part 1: Cost Accounting: Chapters 1, 2, 11
(p. 421 – 423 only), 8, 10 and 4)
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42-43 PART 2: MANAGEMENT CONTROL
LECTURE 5 (3 hours): Chap.12- Financial and Cost-Volume-
Profit Models
Learning Objectives:
1- Build a basic cost-volume-profit (CVP) financial model.
=> Definition of the Break- Even Point, Contribution Margin Approach,
Target Income, Operating Leverage
2- Design financial models to match strategic and operational decisions,
such as profit planning.
3- Build a financial model that reflects the effects of taxes, multiple
products, and multiple cost drivers.
44 All Saints’ half term, no class
43-45 LECTURE 5 (3 hours) (Cont.)
45-46 LECTURE 6 (3 hours): Chap.15- Budgeting and Financial
Planning
Learning Objectives:
1- Describe the key role that budgeting plays in the strategic planning
process.
2- Explain five purposes of budgeting systems.
3- Describe and prepare a master budget, including its components.
4- Describe and evaluate a typical organization’s process of budget
administration.
5- Understand the behavioral implications of budgetary slack and
participative budgeting.
Chap.17- Flexible Budgets, Overhead Cost Management, and
Activity-Based Budgeting (Part 1)
Learning Objectives:
1- Explain how cost managers use flexible budgets to control overhead
costs.
2- Prepare and interpret a flexible overhead budget.
3- Explain how overhead is applied to work-in process inventory under
standard costing.
4- Discuss issues related to choosing activity measures for overhead
budgeting.
46-47 LECTURE 6 (3 hours) (Cont.)
47-48 LECTURE 7 (3 hours): Chap.17- Flexible Budgets, Overhead
Cost Management, and Activity-Based Budgeting (Part 2)
Learning Objectives:
1- Compute and interpret the variable-overhead spending and efficiency
variances, as well as fixed overhead budget and volume variances.
2- Prepare and interpret an overhead cost performance report.
3- Record manufacturing overhead costs under a standard costing by
preparing journal entries.
4- Compute and interpret the variance on direct material and direct
labour (Chap 16, p. 665 – 671).
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48-49 LECTURE 7 (1h30) (Cont.)
LECTURE 8 (1h30): Chap.20- Using Lead and Lag Indicators
Learning Objective:
Understand how organizations implement a balanced scorecard of
performance measures
49-50 LECTURE 8 (3hours) (Cont.)
50-51 Final Exam (Part 2: Management Control: Chapters 12, 15, 16
(p. 665 – 671 only), 17 and 20)
HAVE A GREAT SEMESTER!
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