ACCT 545: Strategic Cost Managment

Method of Course Delivery: Asynchronous Online

Strategic Cost Management (3 credits): Current managerial accounting topics such as activity-based costing, theory of constraints, performance measures and their use in organizations.

This course is a graduate-level course in cost management with a strategic cost emphasis. The course presents an in-depth study of contemporary management techniques used by managers in a contemporary business environment. Building and using financial models, critical success factors, and strategic analysis are emphasized and integrated with other decision-making techniques.

The course builds on the foundation laid in your undergraduate cost accounting and other accounting courses. Managerial and organizational economics provides the underlying framework for understanding internal accounting systems. This course is oriented towards utilizing an internal accounting system to analyze business problems and to make decisions.

Course Pre-requisite(s): Knowledge of Accounting and Financial Statements

To be successful in this course, each student should have a solid understanding of undergraduate accounting, including intermediate financial accounting, cost/managerial, tax, and audit. You also need a solid understanding of the relationships of financial statements and the ability to prepare them on an as-needed basis. You should know debits and credits. It is your responsibility to brush up on these areas if needed.

Objectives

This course introduces students to a strategic approach to explaining and understanding strategic analyses and cost management skills used by successful managers. It deals with the process of identifying, measuring, analyzing, interpreting, and communicating information to be better managers in pursuit of the organization’s goals and objectives.

One goal of this course is to demonstrate how to use accounting information for decision-making. To achieve this objective, the course introduces topics such as the nature of costs, cost management techniques, product costing systems, and how to plan and control operations. The course indirectly focuses on opportunity cost and organizational theory. Opportunity cost underlies decision-making. However, managers must also focus on controlling operations. By combining the concept of opportunity cost with organization theory and agency theory, this course will ultimately illustrate the trade-offs created when accounting systems serve the functions of both decision-making and control.

Another goal of this course is to integrate material into your other graduate courses and build upon your previously taken undergraduate courses to solve real business problems. This course is not a detailed course about cost accounting, per se. While many cost accounting topics are described and discussed, time and meeting limitations prevent a thorough treatment. However, significant problem-solving will be performed so a thorough understanding of the concepts is attained.

After completing this course, students should be able to understand and use cost information to help them successfully manage their organization through strategic analyses. Ultimately, each student is expected to analyze the evidence, evaluate all judgments, and form his or her conclusions toward the goal of developing a personal philosophy of how organizational resources should be controlled.

By the end of this course, successful students will be able to:

1. SKILLS: Use cost management skills such as cost management techniques, and knowledge of costs, costing systems, operations planning, and operations control for strategic analysis and decision-making.
2. ANALYTICAL DECISION-MAKING: Develop analytical skills regarding how organizational resources should be controlled and business problems can be solved so we can make appropriate business decisions.
3. COMMUNICATION: Effectively communicate and present conclusions that evaluate all judgments and are based on evidence.

Course Requirements and Grading

How to Succeed in This Course

The most important ingredients for success in this course are:

• Thorough preparation and analyses of the weekly assigned problems and case studies, and success on the weekly knowledge and skills checks.
• Timely submission of ALL assignments.
• A thorough reading of the text and module material.
• Weekly work on the Financial Modeling and Decision Analysis Project to ensure timely and accurate submission.
• Professionalism in all we do, including writing and submitting of assignments and communicating with the instructor and other students.

Course Grading

The requirement weightings and the final grade determination is based on your results on the case-study analyses and write-ups, module knowledge and skills checks, orientation activities, and the semester project. Professionalism is expected.

The following table summarizes assignments and their associated values.

Letter grades will be based on the following scale:

Note: A grade of “C” or higher is required to pass the course.

Late Policy

NO late assignments will be accepted for ANY Reason. Only under VERY RARE and EXTRAORDINARY CIRCUMSTANCES may the instructor accept a late assignment at his discretion. Should a student have a medically related or military related or emergency circumstance that may cause concern for lack of timely assignment completion, he/she MUST communicate the issue with the instructor immediately. The instructor will ask for any/all supporting documentation to validate the circumstance. Technology issues are NOT valid circumstances. Start assignments early, ask questions, and DO NOT WAIT UNTIL THE LAST MINUTE to submit as technology sometimes has issues. Thus, submit early! I’m willing to work with students if there’s an open line of communication. Sometimes things (life) happens, so don’t hesitate to get in touch as soon as the emergency arises.

Course Assignments

This course contains the following graded assignments:

Knowledge and Skills Checks

These knowledge and skills checks (KSC) are based on the material covered in each associated lesson. Students are given 2 attempts to complete the KSC and must complete it in one sitting. There is no time limit for completion and each KSC is equally weighted. There is no save button (Canvas auto-saves your data), and assessment navigation is enabled so that you should be able to select a question and return to it if need be. The highest score of the two attempts will be used to determine your final grade on each KSC.

In addition to the weekly Module KSCs, your Welcome Discussion will be scored in this course requirement.

Case-Study Analyses

These case-study assignments will be regularly assigned and must be completed using Excel. You need to study the case and create thoughtful solutions to the questions posed, with proper analysis developed on an Excel Spreadsheet. Each weekly case-study assignment is scored out of 100 pts, with point distribution spread amongst the 1-3 cases required each week. You may not get all of these problems 100% “correct” each week. However, you are expected to make an intelligent, determined, and thoughtful effort to address the issues introduced in each problem. All write-ups will be done on an individual basis. Obvious noting of collaboration will be dealt with amongst the instructor and students, with an academic integrity violation possibility.

All weekly assignments are due by 11:59 PM on Sunday evenings. No late assignments will be accepted for ANY reason. Thus, do not wait until the last minute, as technology sometimes has issues. We will submit all assignments via Canvas. You must use your PSU login ID/email to appropriately utilize PSU Canvas. If there are assignment submission issues with Canvas on a given day, then other submission arrangements may be made, but only after consulting with the instructor BEFORE 11:59 PM on Sunday. Again, be sure to also include your name and date of assignment on the inside of your Excel file.

Expectations for Write-Up Work for “Case-Study Analyses”

It is imperative that your work represents high quality and professionalism. Sloppy and unprofessional work will be scored as a zero regardless of content. This includes proper grammar and spelling. Please proofread your work. Points will be deducted for a poorly written analysis. Besides, a poorly formatted spreadsheet will be scored a zero. Proper formatting includes a readable font, headings, labels, your name, etc. Pay attention to how your spreadsheets are created and organized. You may not get all of these problems 100% “correct” each week. However, you are expected to make a reasonable effort to address the issues introduced in each problem. The grade for the Write-Up Work will be determined by the quality and completeness of your answers as below.

Case-Study Analyses Grading Criteria

The following rubric is a guide for grading each case. Final points quantify up to 100 points based on your results.

Solutions: Solutions to the Recommend Problems/Case Study Analyses write-ups will be provided on Canvas after the assignments have been submitted.

Financial Modeling and Decision Analysis Project

A major requirement for this course is the completion of the Financial Modeling and Decision Analysis project using Excel. The project requires each student to create of a detailed budgeting financial model and then make subsequent decision-making analysis based on the model. It requires each student to prepare a master budget plan and to perform budget analysis and research. Details and instructions may be found at the project module. It is critical that you start early and ask the instructor question as you move forward. The project is graded based on completeness and demonstration of understanding.

Assignment Completion Policy

All submissions must be completed individually.

• Each student is responsible for all assigned material unless noted or communicated otherwise.
• All work is to be done individually unless explicitly noted otherwise. The rules of the university, especially with respect to academic integrity, will be enforced.
• Information will be made available to all students through e-mail and websites.