UNIVERSITY OF TEXAS - DALLAS

School of Management

AIM 2302 – Spring 2005

INTRODUCTORY MANAGERIAL ACCOUNTING

Professor Celal Aksu

SOM 4.229; Phone: 972-883-4426; E-mail: Web CT
Office Hours: Thursdays 15:15 – 17:15 and by appointment

Teaching Assistants:
• Xie Xinmei (Lucy): SOM 4.211; Phone: 972-883-4924; E-mail: Web CT;
Office Hours: Tuesday 10:00-12:00
• Lilian Chan: SOM 4.429; Phone: 972-883-4434; E-mail: Web CT;
Office Hours: Wednesday 16:00-18:00

Required Material:
• Textbook: C.T. Horngren, G.L. Sundem, and W.O. Stratton, Introduction to Management
Accounting (Prentice-Hall, 13th edition, 2005).
• Handouts: on certain topics that are supplementary to the text. These handouts are part of the
primary source of instructional materials. They will be posted on WebCT. They will not be
available in class or from my office.
• Solutions: to some of the assigned problems. They will be posted on Web CT.

Web CT: All electronic communication will take place through Web CT (not UTD e-mail or website).
Therefore you should check Web CT regularly and use Web CT if you need to contact me or
my TA. Please avoid e-mailing me or my TA using our UTD addresses.

Course Objectives: The primary goal of this course is to enable students in understanding management’s
information requirements and the role that accounting plays in fulfilling these requirements. We will
examine cost systems firms use for operations control and for product costing. Emphasis will be
placed on the managerial use of cost information for operational and strategic control. Topics covered
include identifying cost behavior with respect to managerial decisions; measuring and controlling the
consumption of resources by a firm's products; analyzing product cost systems in diverse
manufacturing and non-manufacturing settings; and making product mix decisions.
Throughout the course, we will pay particular attention to various (unintended) dysfunctional
consequences of traditional systems, as well as some possible solutions to these problems.

Course Format: We will concentrate on the design, implementation, and use of product costing systems.
Throughout, emphasis will be placed on how product cost numbers can be determined and the
reliability of those numbers. After considering how costs may be collected, concentration will be on
the use of resulting product cost data for managerial control and analysis. During the course students
will become familiar with aspects of the management accountant's job and preparation of various
internal reports and accounting statements. In particular, students will develop an understanding of the
assumptions and constraints applied in the accounting process.
 The class sessions will consist of a mixture of lectures and class discussions. Students are expected to
have read the assigned material and to have attempted to solve the assigned exercises and problems
prior to class. The class discussions will generally presume a working knowledge of the assignment
material and proceed to develop applications and illustrations.

Class Participation: Students are encouraged to ask relevant questions, make pertinent comments, and
present answers to questions raised during class. They are also encouraged to use office hours to
discuss matters related to the course.

Assignments: The completion of homework assignments is crucial to mastery of the subject matter.
Solutions to assigned exercises and problems will not be collected. Most of them will be discussed in
class. It is solely student's decision as to how much of the assigned exercises and problems are done
prior to class. However, he/she will be responsible for the content of the assigned homework.

Exams: Exams will cover material contained in the required readings, assignments, and class discussions.
They will generally include multiple choice questions.
Make-up exams will be given only under extenuating circumstances arising from medical or family
emergencies.
It is your responsibility to note the exam dates and let me know at the beginning of the semester
if you foresee any conflicts. It is also your responsibility to ensure that you do not schedule any
job interviews or travel for official or personal reasons during exam days.

Grade Determination: Three, in-class, non-cumulative exams (30% each), and class participation (10%).
Students are allowed to bring in one page of notes to each exam. We will review graded exams during
a class subsequent to the exam. However, the exam must be returned before you leave the class. You
may not keep the exams! If you need more time to review the exam, you can look at them during my
TA’s office hours.
Grades for class participation will be based on the following factors: i) attendance, ii) preparation,
iii) appropriate contribution to discussion, and iv) willingness to answer and/or to ask questions.
 AIM 2302 - Course Outline (Spring 2005)

The following plan of coverage, if need arises, may be changed. These changes will be announced beforehand.

Managerial Accounting and the Business Organization

Chapter 1
Cost Behavior; Cost-Volume-Profit Analysis; Cost Measurement and Estimation
Chapter 2 (appendices included); problems 36, 43, 60
Chapter 3 (appendix excluded); problems 32, 47, 48
Cost Management Systems and Activity-Based Costing; Activity-Based Management
Chapter 4 (appendix excluded); problems B3, 57, 58

Relevant Costs, Revenues and Decision Making

Chapter 5; 42, 47 (part I only); 49, 53
Chapter 6; 33, 36, 59

February 15 (Tuesday): Exam I (in-class) ... Chapters 1,2,3,4,5,6

Standards; Planning Budgets

Chapter 7 (appendix excluded); problems 28, 31, 36, 39
Flexible Budgets and Variances
Chapter 8; 42, 43, 44, 46
Management Control in Decentralized Organizations
Chapter 10; 27, 28, 32, 33, 36, 37, 48

March 22 (Tuesday): Exam II (in-class) ... Chapters 7,8,10

Cost allocation - General Issues; Service Department Cost Allocations

Chapter 12 (pages 541-543 excluded); 24, 26, 38, 42
Accounting for Overhead Costs: Variable vs. Absorption Costing
Chapter 13 (pages 588-589 & appendix excluded); 38, 39, 42, 65
Job Costing and Process Costing Systems
Chapter 14 (pages 644-646 excluded); 31, 40, 45, 46

April 21 (Thursday): Exam III (in-class) ... Chapters 12,13,14