SEOUL NATIONAL UNIVERSITY

COLLEGE OF BUSINESS ADMINISTRATION

MANAGERIAL ACCOUNTING (251.306.002)
Spring Semester 2021

Time, Room: Monday/Wednesday, 2:00 p.m.  3:15 p.m.

Instructor: Iny Hwang, Ph.D.
Email: hiny72@snu.ac.kr
Phone: 02-880-6942
Office: 58-402
Office Hours: 4:00 p.m. to 5:00 p.m. on Wednesday or by appointment

Course Keywords: cost analysis, planning, control, managerial decision, performance measurement,
compensation, information asymmetry

Course Objectives: Managerial accounting is concerned with using information to effectively plan and
control operations and to make good business decisions. The overall objective of this course is to provide
students with the concepts and tools needed in planning, control, and decision making.

By the end of the term, students are expected to be able to do:

- understand the up-to-date cost accounting systems,
- apply relevant cost concepts and quantitative techniques that can assist management in variety of
decision-making processes in short-term and long-term horizons,
- learn how performance measurement systems have evolved in pursuit of better control mechanisms, and
consequently,
- understand accounting information from the perspective of managers, not accountants.

Students are recommended to take Principles of Accounting (251.205) ahead of this course.

Course Materials
- Textbook: “Managerial Accounting” 7th Ed. by James Jiambalvo, Wiley (ISBN 9781119577720)
- Lecture PPT slides, exercise problems, and case studies (will be available online)
- Reference book for term-paper assignment: “Phishing for Phools: The Economics of Manipulation and
Deception” by G. Akerlof and R. Shiller (ISBN 978-0-691-16831-9)

Class Format: Real-time online meetings using ZOOM (or classroom meetings when allowed)

Course Organization and Helpful Hints: A typical class session will involve introduction of new
concepts, application of the concepts to practice, and problem solving. Some guidelines for this course
are:
Textbook: You are encouraged to read the textbook chapters ahead of the class. This will familiarize you
with the class discussion topics and put you in a better position to absorb the lecture actively.
Lecture PPT slides, exercise problems, and case studies: These will be regularly uploaded at the course
website. The lecture PPT slides might not be self-explanatory and won’t be much of use unless you attend
the class.
Practice with Problems: This course relies on problem solving as the main pedagogical tool to help you
develop logical way of thinking. If you keep up to date with the work, your understanding (and hence
your grade) should benefit accordingly. It is crucial for you to solve as many problems as possible for
your success not only in this course but also in applying your knowledge to other business fields.
Q&As: Post your questions openly in eTL (Board – Class Q&A).

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Classroom Courtesy: During classroom discussion, students are expected to observe basic rules of
courtesy in this course. Those who engage in non-class-related activities (such as web surfing, phone
messaging, chatting, etc.) will be asked to leave the classroom and may receive a deduction in their grade.

Evaluation: Course grades will be based on total points earned during the term. The tentative point
distribution is as follows:
Midterm Examination 150 points (30%)
Final Examination 150 points (30%)
Term Paper Assignment 100 points (20%)
Homework Assignments 50 points (10%)
Attendance/Participation 50 points (10%)
Total 500 points (100%)
Exams (total 300 points): Two examinations will be conducted as a major evaluation device. You will be
asked to answer multiple choice problems and essay types of questions regarding important concepts and
issues in the management accounting area. Also, there will be computation problems to assess your
analytical capability required for decision makers. Expect exams to cover any material presented in the
textbook, handout worksheets and class discussions.
The midterm and final exams will be conducted in class unless the university prohibits it. Multiple
classrooms will be arranged for the student safety. You should seriously consider this course’s offline-
exam format in your registration decision. The examination days are fixed and shown in the course
schedule table below.
Cell phones should be turned off and put away prior to the start of an exam, so do not plan to depend on
your cell phone as either your clock or your calculator.
Make-up exams will be given only under extenuating circumstances arising from medical or family
emergencies. Documented evidence that you were seriously ill or experienced a family emergency at the
scheduled time of the final exam is required. In order to be excused from the exam, you must contact me
prior to the exam day and be ready to provide documentation on your make-up exam day. Students who
do not show up for the final exam without making arrangements according to the preceding rule will
receive a letter grade of F. It is your responsibility to note the exam dates and let me know at the
beginning of the term if you foresee any conflicts.
Term Paper (100 points): See the Appendix.
Homework Assignments (50 points): Four homework assignments will be given through the term. The
detailed instruction of homework assignments will be announced in class. Late submission will not be
accepted for any reason.
Attendance and Participation (50 points): Attendance is required to successfully complete this course.
You are responsible for all material covered in each lecture, as well as any announcements made
regarding changes to scheduling, assignments, the syllabus, etc. In addition, exam questions will be made
primarily based on the classroom discussion. The more classes you miss, the less you learn obviously and
the more time you need to spend in studying for exams to catch up on the material. Furthermore, students
who actively participate in class discussion (disturb class discussion or hamper classroom atmosphere)
will be recognized and considered to be given higher (lower) credits. According to the university rule,
students who are absent for over 33% of the class will receive a grade of ‘F’.
Remark on the Final Letter Grade: Students who miss any of the two exams will automatically receive an
F. Students who remain in the course after the withdrawal period must be responsible for their
performance. DO NOT request downgrading for the purpose of retaking the course. There will be no
compromise on the final grade for any individual-specific reasons. More importantly, due to Kim Young-
ran Act, students cannot request a grade change once the grade is issued in the school system.

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Support Services for Students with Disabilities
For Lectures:
- Visual Impairment: Allow note takers
- Physical Disability: Allow note takers and assistants
- Hearing Impairment: Allow note takers and translators, Allow lecture recording
- Health Impairment: Excuse absence due to health problems, Allow note takers
- Learning Disability: Allow note takers
- Intellectual Disability / Autism Spectrum Disorder: Allow note takers and mentors

For Assignments & Evaluations:

- Intellectual Impairment / Physical Disability / Hearing Impairment / Learning Disability: Extended
assignment deadlines, Offer alternative assignment submission and response method, Extend testing
period, Offer alternative testing method, Offer different testing room
- Intellectual Disability / Autism Spectrum Disorder: Offer individualized assignments and alternative
evaluations
Others: Students who take this course can get appropriate level of support service including the support
listed above depending on the students’ individual characteristics and needs through consultation with
professors and the Support Center for Students with Disabilities. If you have any questions concerning
support service for students with disabilities, you can contact the instructor (02-880-6942) or Support
Center for Students with Disabilities (02-880-8787)

Course Schedule: The following page provides an outline of the course. The instructor reserves the right
to amend or change this syllabus and class schedule.
Date Topics Reading

Sep. 1 - Introduction to Managerial Accounting – Ch.1

Sep. 6 - Job Order Costing (cost classifications) – Ch.2

Sep. 8 - Job Order Costing (flow of product costs) – Ch.2

Sep. 13 - Job Order Costing (allocating overhead to jobs) – Ch.2

Sep. 15 - Cost-Volume-Profit Analysis (cost estimation) – Ch.4
* Homework #1 (cost estimation practice) by September 17

Sep. 20 - Chuseok holidays

Sep. 22 - Chuseok holidays

Sep. 27 - Cost-Volume-Profit Analysis (break-even point) – Ch.4

Sep. 29 - Cost-Volume-Profit Analysis (operating leverage) – Ch.4

Oct. 4 - Variable Costing – Ch.5

Oct. 6 - Purpose of Cost Allocation – Ch.6
* Homework #2 (Case 2.3 DuPage Powder Coating) by October 10

Oct. 11 - Activity-Based Costing – Ch.6

Oct. 13 - Activity-Based Costing – Ch.6
* Homework #3 (Case 6.1 Eastside Medical Testing) by October 17

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Oct. 18 - Schroeder Electric GmbH Case
Oct. 20 - Review for Midterm Examination

Oct. 25 Midterm Examination (Chapters 1, 2, 4, 5, and 6)

Oct. 27 - Adverse Selection, Market, and Accounting
(as a guidance for the term paper assignment)

Nov. 1 - Management Decision Making – Ch.7

Nov. 3 - Management Decision Making – Ch.7

Nov. 8 - Laurentian Lodge Case

* Homework #4 (from Laurentian Lodge Case) by November 9

Nov. 10 - Pricing Decisions – Ch.8

Nov. 15 - Pricing Decisions – Ch.8

- Catalina Camera Company Case
Nov. 17 - Agency Problems (as an introduction to the control mechanisms)

Nov. 22 - Budgetary Planning & Control – Ch.10

Nov. 24 - Static/Flexible Budgets – Ch.10

Nov. 29 - Decentralization and Responsibility Accounting – Ch.12

Dec. 1 - Decentralization and Responsibility Accounting – Ch.12

Dec. 6 - Economic Value Added (EVA) – Ch.12

- Barrows Consumer Products Case
Dec. 8 - Incentive Schemes and Managerial Short-termism
- Motivation vs. Selection

Dec. 13 - Recapitulation of the Course

Dec. 15 Final Examination (Chapters 7, 8, 10, and 12)

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 APPENDIX
[Term Paper Assignment]
“A Research on the Role of Accounting in the Market”
Submission due dates:
Research proposal by November 19 (Friday), 2021
Final report by December 20 (Monday), 2021

“Phishing for Phools: The Economics of Manipulation and Deception” by George Akerlof and Robert
Shiller, Princeton University Press 2015
(“피싱의 경제학” 한글 번역판, 알에이치코리아 2016)

After reading the book, try to identify information asymmetry problems in the business practice. You can
investigate the capital market but I encourage you to consider other types of market such as labor market,
supply chain, or consumer market. Describe one example which intrigues you the most. Explain why your
example of information asymmetry is harmful to the market. Suggest some potential solutions from the
perspective of accounting systems (information systems in a broader sense).

* Suggested format
I. Introduction
A. The main idea of your research
B. Description of the information asymmetry problem that you examine
II. Main Body
A. Discussion about some implications of the information asymmetry problem (for instance,
anecdotal/practical examples or potential concerns to the market)
B. Suggestion of how you would address to the problem
III. Concluding remarks
[Reference] a list of references cited in your work
[Appendix] tables and figures (if necessary)

* Suggested length of term paper

 No longer than 10 pages excluding Appendix
 Font size of 12pt
 Line space of 1.5
 Normal margins: 1 inch (2.54 centimeters) margins on all sides
 In case there are tables or figures, you may put them in Appendix of your report.

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