San Jose State University
College of Business
Department of Accounting and Finance
Managing Cost and Revenues--MBA 217E
Spring 2007
(Updated Feb. 13, 2007)--final exam hints up

Section: MBA One--Mondays and selected Fridays, 10 am - 2 pm
Office: BT 852-main campus
Office Hrs.: At Rose Orchard Campus before and after class by appointment
Phone: 408.924.3468
Fax: 408.924.3463
E-mail: wfocpa@aol.com

COURSE DESCRIPTION:
Cost and revenue management employs disciplined processes of decision-making, resource allocation, and performance measurement that link strategy, management action , and shareholder accountability. This course covers the integration of strategic cost management tools and action. It explores the processes that are used to deploy strategy, align interests, improve operations and facilitate strategic change toward the goal of maximizing firm value. It presents the critical role strategic cost management plays in the overall success of an organization.

Case studies are used to reinforce the theory presented in the texts.

COURSE MATERIAL:
Required:   A Modular Series: Management Accounting--A Strategic Focus, Ansari Bell, Klammer......(special WFO printing, buy at Spartan Bookstore).  I know the bookstore is delayed on this one.
          ISBN: 0618461763
                    Strategy and Management Accounting (SMA)                                          
                    Organizational Role of Management Accountants (ORMA) 
                    Manufacturing Overhead Allocation (MOA)
                    Activity Based Management (ABM)
                    Value Chain and Strategic Cost Mgt. (VC)
                    Target Costing (TC)
                    Management Accounting in the Age of Lean Production (MALP)
                    Measuring and Managing Quality Costs (MMQC)
                    Measuring and Managing Evironmental Costs (MMEC)
                   
                     

                  The Goal, Ely Goldratt and Jeff Cox, 3rd Revised Edition. ISBN: 0884271781

                  It's Not Luck, Goldratt. ISBN: 0884271153

                  O'Brien 217E Course Reader, (available at Copy Craft, 341 Lafayette St., #103, Santa Clara; Tel: 247-4692 or 326 Santa Clara Street, San Jose; Tel: 294-6715).
                  O'Brien 217E Course Cases,   (also available at Copy Craft).
         
Before you come to each class, read the material as outlined in the syllabus. Homework problems beyond the required cases will be assigned as appropriate and are to be completed before each class. Students will be expected to present solutions to selected homework assignments in class. While homework will not be collected, it is absolutely necessary that you do your homework. Each chapter uses concepts and techniques learned in previous chapters. If you wish to understand the material better, you cannot afford to ignore the homework.  Similarly it is important to read the cases before they are to be presented in class.  This stimulates discussion and reinforces your understanding of the material.

EXAMINATIONS:
There will be two examinations.  Generally speaking, there will be NO make-up examinations. In the event of a rare emergency on the day of the examination, you should notify me as soon as possible.  On each examination, an adjustment to each student’s raw score will be given based upon the average score of the top 10% of the class.

CLASS SESSION:
In class, we stress analysis and application of the concepts that you learn on your own. While we follow the general flow of the textbooks, we do not simply repeat the text. We emphasize important points, add new information, review homework problems and apply the concepts to real-world situations. Ample opportunities will be given to you in class for asking questions and answering questions raised by others. I expect each of you to be prepared for class.

GRADING AND GRADE CATEGORIES:
Grading will be based on                                                              The following grading distribution
  the following scores:                                                                     will be approximated:
            Exams (2) -100 points each                200                                     A range 45%          87%-100%
            Cases & Presentations                       100                                     B range 50%          70%-86%
            Participation                                      50                                     C range 5%            60%-69%
              Total points                                   300                                      F                           Below 60%
                                                              

TEAM CASES: (See the cases below)
Interim Case
One team case will be assigned to each team during the course of the semester. These cases will be based on material contained in the case materials and the class discussions. The assigned team should submit a written solution of their case in   professional business format.  In addition, they will be responsible for  presenting the results of their analysis to the class and conducting a 15 minute lecture/discussion of the case which links the case to the relevant course material.  Presentations should be limited to 15 minutes or less. The cases will be available from Copy-Craft on Jan. 58th.  Cases and teams will be determined on January 8th.

Any violation of academic integrity, including unauthorized use of the internet, in any of the cases or exams will lead to a course grade of "F".

IMPORTANT MESSAGES:
-Before coming to the second class please review the cost accounting terminology from 213B; in addition, read the SMA & ORMA modules. (Share materials with students who do not have the primary text.)

COURSE NOTES:

MESSAGES:
-Hints for the mid-term:
    -Know how the Ansari Triangles work.
    -Understand the basics of the value chain and the balanced scorecard.    
    -Know how to calculate the standard and ABC approaches to manufacturing overhead.
    -Understand the differences between ABC and ABM.
    -Know the impact and the content of the Trifecta.
    -Understand the difference between a business partner and a corporate cop.
    -Be able to identify, describe and provide examples of the What and the How.
    -Understand the main gist of the following articles...A1, B1, B2, E1, E2, E3 and G1
    -Remember that ABC does not equate to "true costs".
    -You can bring a 3 X 5 HANDWRITTEN note card into the exam.

-Case Assignments:
    -Baldwin...Omega
    -Reichard...Guru
    -Dairy Pak...Parkson
    -Graham, Inc...Gold Diggers
    -Allied Stationers...Sox Rules
    -Bridgewater Castings...Alpha
    -Societe Bonlieu...She
    -Chalice Wines...HATZZ

-Some discussion issues for "It's Not Luck":
    -Apply Ansari's triangles to each of Alex's companies.
    -What happened to each of the companies?
    -Was it a good deal financially for Unico in the end? Why or why not?
    -Apply the "what" and the "how" to this story.
    -How do the "clouds" work?