Managerial Accounting

Managerial Accounting ACCT 2301

Sequence of Instruction

Week	Topic	Chapter or Assignment
1	Introduction: Course content, Grading Policy, Materials, Expectations Managerial Accounting Concepts and Principles	1
2	Costs, Terms, Classifications, TQM, Deming's Helpful Charts	2, Notes
3	Job order Cost Accounting	3
4	Cost Behaviour: Analysis and Use	5
5	Review and Test 35%	1 - 5
6	Cost-Volume- Profit Relationships	6
7	Cost- Volume-Profit Analysis (continued)	6
8	Application of CVP Analysis to Professional Sport CVP Assignment Due (20%)	6
9	Budgeting	9
10	Standard Costs	10
11	Flexible Budgets and Overhead Analysis	11
12	Budgets in Sport Organizations Budget Assignment Due (10%)
13	Relevant costs for Decision Making	13
14	Capital Budgets, Review of material	14, All

Evaluation Criteria

Test 1	February 6 or 7	35%
Final Test	April TBA	35%

Assignments:
CVP	March 5	10%
Budget	April 2	20%

TOTAL		100%

Assignments, Tests, Samples and Resources

Sport Management
ACCT 2301
Managerial Accounting

Final Take Home Test 2006
40 Marks Total, 35% Course Weighting

Due: Monday 24 April 2006 at 4:00 pm in C6.

I prefer that the test be submitted on paper. However, reluctantly, I will accept the test by e-mail.

You may submit your test using email to: paul.desouza@durhamc.on.ca

Do not assume your e-mail has been delivered until you receive confirmation. Keep copies of all material, including rough notes, in case you are asked to prove the work you submit is your own.

Instructions:
The work you submit for evaluation must be your own. Each member of a study group is expected to submit their own material, in his or her own words. Failure to comply is considered to be Academic Dishonesty. It will result in a mark of zero on the test, as the minimum punishment. Consult the Durham College policy on Academic Dishonesty for more information.

In your document state the question before answering it. Use sentence and paragraph form unless otherwise instructed.

Question 1. Sporting Life is a Toronto retailer of sporting goods. Owner Dave Russell would like to use his budget to plan, control, and provide incentives for this managers and employees in the store. Explain how the budget system can be used to encourage efficient operations and motivate employees and managers to meet or exceed goals. (5 marks)

Question 2. The Toronto Blue Jays would like to forecast ticket sales for the 2007 season. Give five examples of factors that might be used in the sales forecast and briefly explain why each one should be used. (5 marks)

Question 3. In 2002 the Toronto Phantoms Indoor Football Club wanted to know if they should rent space in the Hershey Centre in Mississauga. A consulting Company calculated that their Break Even in Dollars (BE$) would be $730,000. Their only revenue was to be from the tickets sold for each of their 8 home games. The price of a ticket was $20. The Hershey Centre has capacity of 3,500. Explain your answer. (5 marks)

Question 4. The following questions concern the St. John’s Maple Leafs, an AHL team that played in the Mile One Stadium, seating capacity 5,800. The team had 40 home games. The average price of a ticket was $17. The Leafs had variable costs of $6 per ticket sold. Their fixed costs included $520,000 for office salaries, overhead and facility rental. The hockey operations had fixed costs of $1,300,000.

A. Calculate the season attendance required to generate a net profit of $800,000 (5 marks)
B. At the end of the year the Leafs had an average game attendance of 5,285. How would you measure their success, or lack of it? How well did they do? Explain. (5 marks)

Question 5. Compare fixed and flexible budgets. Use examples to illustrate your answer. (5 marks)

Question 6. North American businesses have been ruthless in their cost-cutting strategies with one exception, executive compensation. Use examples to explain why this exception needs to be addressed. (10 marks)

Sample Review from Winter 2005

Managerial Accounting Test Week 5

8 Questions 40 marks Weighted 35%

Closed Book. Closed Notes. Each question is worth 5 marks.

Review: Most questions require you to answer in sentence and paragraph form. To receive all marks you must answer using examples. If you are pressed for time it is permissible to use point form. However, point form answers often omit the relationships among the facts, so it is much more difficult to achieve a perfect score for the question.

Review the two exercises required for homework (E20-1, E20-2) and the in-class exercise on Control Charts. Note that the textbook has study objectives at the beginning of each chapter. A summary of study objectives concludes each chapter. (See page 863 for Chapter 20.) There is a glossary of terms on page 867. The authors provide self-study questions and answers starting on page 871. The publishers also have a website that may be helpful offering reviews, online tests etc.

See:

http://highered.mcgraw-hill.com/sites/0070916497/student_view0/index.html

Be prepared to

1. Define managerial accounting and financial accounting. Explain the difference between the two. Last year’s question: “Contrast the differences between Managerial and Financial Accounting. Give an example of a managerial report.”

2. Label a diagram of Manufacturing Costs. (See Illustration 20-2)

3. Classify Cost Items in a problem similar to E20-1, E20-2.

4. Describe how Product Costs are recorded in the financial accounting system when a Job Order Costing System is used.

5. Explain how Deming’s work can be incorporated into a managerial accounting system.

6. Identify or list Deming’s Helpful Charts. You should know how each is used.

7. Change a Run Chart to a Control Chart and analyze the data.

8. Comment on global issues about the manufacture of sporting goods. Use companies mentioned in class as examples.

Resources

Programs

Sport Management
Professional Golf Management
Sport Business Management (Graduate Certificate)