Information
AI Chat

Course Overview - Summary Managerial Accounting

Overview of course

Course

Managerial Accounting (ACFI 350)

3 Documents

Students shared 3 documents in this course

University

Bridgewater State University

Academic year: 2018/2019

Uploaded by:

Ken SAwyer

Bridgewater State University

0followers

3Uploads

0upvotes

Comments

Please sign in or register to post comments.

Preview text

Overview Introductions Overview of class Course requirements Introduction to managerial accounting The Smith Center Summary Introduction Undergraduate degree from Bucknell University 2 years at Price Waterhouse (CPA) 4 years at the Equitable from Penn State Married with two children Research Interests Accounting for Mergers and Acquisitions Role of accounting information in financial contracts. Experience with managerial accounting Course Overview Who should take this class Are you going to be a manager? Are you going to be a consultant? Are you going to be an entrepreneur? Course Overview Requirements This class is designed to allow you to develop an understanding of the concepts applying the material covered to real life problems and cases. I have designed the grading system for this class to meet this objective. Your grade will be computed as follows: Group Case Individual Cases Take home Final Managerial Accounting What is managerial accounting? The Smith Center In 1992, State University committed to building the Smith Center (A seat basketball Arena). The following projected financial information was available to the University prior to engaging in the project: Costs: Building Parking million 2 million Funding: Private Contributions State Funding million million The Smith Center The following is a hypothetical scenario describing how these could be two different measurements of profit for the same economic entity. Lets first focus on the universities estimate. The Smith Center State estimates on Profitability of the Smith Center: Revenue: Basketball Ticket Revenue Parking Donations to Basketball program Television Revenue Allocated shared revenue Costs Utilities Tuition cost of supporting a basketball team Cost of supporting coaches and administrators: Payroll Costs Allocation of shared expenses million million million million million million million The Smith Center Factors What are allocated revenues? State University has a 4 million dollar endorsement contract with Pepsi. This revenue is also allocated equitably over the 23 Varsity programs. Does an equitable allocation make sense? What happens if the allocation is changed to sports which are broadcast to a national audience, or the number of national appearances? Does it matter? The Smith Center Factors What are the opportunity costs of providing million of financing for the Smith Center? Develop a school of information technology. Expand the library. Expand the football stadium The Smith Center Factors Can State University generate additional revenue at the Smith Center? Concerts WWF Product Expo Will State University use the facility for other purposes? Commencement Job Fair Tail gates The Smith Center Factors How do you allocate the costs of the 56 million dollars raised since there is no interest associated with raising these funds? Cost of Debt? Cost of Equity? Cost of next best available alternative? Summary Important Concepts to take away from this class: 1. Opportunity Costs 2. Cost allocations are important in a wide variety of contexts. 3. Incremental cost analysis. For tomorrows class, please read Main line vs Bassinger, it is on the web, and skim chapter 2 of the textbook. We will spend some time on problems: (X Corporation Jet), (University Parking), Boards).

Was this document helpful?