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Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 928 - Introductory Management Accounting C01

Academic Credit Value:
3 units
Course Delivery Mode:
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 925 Introductory Financial Accounting or equivalent. Be advised: Students who do not meet the pre-requisites will be required to withdrawal. In such cases, CCE’s withdrawal/refund policies will apply.
Course Anti-requisite(s):
Instructor Name:
Nancy Martini
Course Dates:
01/16/2019 - 04/10/2019

Required Course Materials:
Horngren, Datar, Rajan, Beaubien & Graham: Cost Accounting: A Managerial Emphasis Seventh Canadian Edition. Pearson Canada Inc., Toronto, Ontario.
Optional Course Materials:
Course Description:
This course introduces a variety of product and function costing systems used in both manufacturing and service industries in the determination of income.  Concepts and methods of allocating indirect costs in various costing environments will be examined and applied from a management perspective.
Learning Outcomes:
At the end of this course, students will have learned and demonstrated the ability to:
  • Produce cost information; product costs and business function costs
  • Develop cost reports in a reasonable format
  • Confidence in interpretation use of  cost information for management purposes
  • Identify the advantages and disadvantages of the various methods used to determine product and
         business function costs and suggest possible alternatives in specific situations
  • Course Evaluation
    The final grade is calculated based on the following components:

    Class Participation, Attendance & Discussions  5% 
    Quizzes (in class) 15%
    Mid-term Examination 35% 
    Final Examination 45% 
    Total 100% 

    Homework and Class Preparation: The solutions to the assigned homework questions are in the A2L course files.

    Students are expected to read the assigned chapter prior to attending the class and to participate in class discussions. Assigned homework questions may be done either before or after taking up the subject in class. Quizzes must be written in class on the scheduled date. No reschedule will be made of missed quizzes; a 0 will be assigned to a missed quiz . Any assignments must be submitted on or before the due date to avoid mark penalty for late submission, and, in accordance with assignment instructions.  Assignments must be the student’s own work without collaboration with other students, any other person or any source except the course text.  McMaster University Academic Integrity policy governs student tests, exams and submissions.

    Both the concepts and principles will be presented and discussed in each session with the assistance of power point slides for about the first half of the class time. The second half of each class will focus on applying the concepts to exercises and problems with the participation of students. Thus, it is imperative that students attend the entire session, in order to not only grasp the concepts and principles, but to see how they are applied. Students are expected to participate In class discussions, ask questions for clarification, and ask any appropriate questions.

    Course Format:
    This course is designed to present the fundamental concepts and theories in Introductory Management Accounting and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
    Assignment Submission:
    Late Coursework:
    Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied. Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request.  NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.

    Policy & Procedures:

    Academic Regulations (Attendance, Coursework, Tests/Exams):
    In accordance to McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified. Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy. Failure to contact the course instructor, in the case of missed coursework, or the Program Manager, in the case of a missed test/examination, within the specified 48-hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.

    *Note: Supporting documentation will be required but will not ensure approval of accommodation(s).

    Academic Integrity
    You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

    It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at

    The following illustrates only three forms of academic dishonesty:

    1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
    2. Improper collaboration in-group work.
    3. Copying or using unauthorized aids in tests and examinations.
    Academic Accommodations:
    Students with disabilities who require academic accommodations must contact the Student Accessibility Centre (SAS) to meet with an appropriate Disability Services Coordinator. To contact SAS, phone 905-525-9140 ext. 28652, or email For further information, consult McMaster University’s Policy for Academic Accommodation for Students with Disabilities.
    On-line Elements:
    In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.
    McMaster University uses a web-based service ( to reveal plagiarism. Students will be expected to submit their work electronically to and in hard copy so that it can be checked for academic dishonesty. Students who do not wish to submit their work to must still submit a copy to the instructor. No penalty will be assigned to a student who does not submit work to All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.). To see the Policy, please go to McMaster Academic Integrity Policy. 
    Course Changes:
    The instructor reserves the right to modify elements of the course and will notify students accordingly.
    Course Withdrawal Policy:
    Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (
    Storm Closure Policy:

    In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy:, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.

    Grading Scale:
     Grade Equivalent
    Grade Point
    Equivalent Percentages
    A+ 12 90-100
    A 11 85-89
    A- 10 80-84
    B+ 9 77-79
    B 8 73-76
    B- 7 70-72
    C+ 6 67-69
    C 5 63-66
    C- 4 60-62
    D+ 3 57-59
    D 2 53-56
    D- 1 50-52
    F 0 0-49
    Course Schedule:
    Week 1

    Chapter 1 – Accountant’s Vital Role in Decisions Making
    Homework: 1-14, 1-18, 1-22, 1-25

    Class objectives:

    *Understand how management accounting fits into the organization
    *Decision making, management planning and control
    *Describe the set of business functions in the value chain

    Week 2

    Chapter 2 - Cost Terms and Purposes
    Homework: 2-14, 2-16, 2-18, 2-21, 2-14, 2-16

    Class objectives:

    *Explain cost drivers; variable and fixed, direct and indirect costs
    *Distinguish inventory costs from period costs; GAAP compliant
    *Describe why product costs are different for different purposes

    Week 3   

    Chapter 4 - Job Costing of services and goods
    Homework: 4-16, 4-18, 4-20, 4-26

    Class objectives:

    *Identify job costing procedures; normal and actual costing
    *Track the flow of costs in a job costing system
    * Prepare journal entries and T accounts
    * Apply knowledge of direct and indirect cost pools
    * Apply knowledge of OH cost allocation rates/over (under) application

    Week 4

    Chapter 18 - Spoilage Job costing chapter 18; pp.682-683; 695-700
    Homework: 18-15, 18-27, 18-40, 18-41, 18-42

    Quiz 1

    Class objectives:

    *Distinguish between traditional and activity based costing
    *Assign costs to products using activity based costing
    * Explain the benefits of ABC

    Week 5

    Chapter 5 Activity based costing ABC
    Homework: 5-16, 5-17, 5-22, 5-36 

    Class objectives:

    *Distinguish between spoilage, reworked units and scrap
    *Demonstrate understanding of recording costs of spoilage, reworked units and scrap in a job costing system

    Recap of concepts for the Mid Term Exam

    Week 6

    Mid-term Exam

    Week 7

    Chapter 14 - Cost Allocation
    Homework: 14-15, 14-16, 14-19, 14-24, 14-25  

    Class objectives:

    *Distinguish four purposes for allocating costs to cost objects
    *Distinguish single rate vs dual rate methods; step down vs direct vs reciprocal allocation methods
    *Understand the effect on business these allocation methods may have   

    Week 8

    Chapter 9 - Absorption vs. Variable Costing, Throughput costing; part 1.
    pp. 329-340: Appendix 9A, pp. pp. 342-344. Pwr pt slides 9 to 28. 
    Homework: 9-15, 9-16, 9-17, 9-22, 9-24.

    Class objectives:

    *Key features of variable costing vs. absorption costing
    *Prepare variable and absorption cost income statements
    *Explain differences in income of absorption costing vs variable costing
    *Apply cost allocation procedures to supporting department cost pools

    Week 9

    Chapter 9 – Denominator Level Capacity Concepts ; part 2, pp. 319-328
    Homework:  9-15,  9-26, 9-31, 9-32.                       

    Class objectives:

    *Describe the various denominator level capacity concepts effect on absorption costing and income
    *Explain how absorption costing influences performance evaluation

    Week 10

    Chapter 17 - Process Costing Systems, ( WA pp. 640 -653)
    Homework;  17-5, 17-13, 17-14, 17-16, 17-26, 17-27                    

    Class objectives:

    *Describe when process costing systems are appropriate
    *Calculate and use equivalent units
    *Calculate weighted average (WA) method unit cost

    Week 11

    Chapter 17 - Process Costing Systems (FIFO, STD, pp. 653 -667) 
    Homework: 17-6, 17-17, 17-18,  17-22, 17-30

    Quiz 2​

    Class objectives:

    *Calculate unit costs using FIFO/STD cost methods
    *Prepare journal entries for process costing systems

    Week 12

    Chapter 18 - Spoilage (only as it applies to Process Costing) pp. 682-695
    Homework: 18-15, 18-16, 18-17, 18-18, 18-19, 18-24, 18-25, 18-26   

    Class objectives:

    *Account for spoilage in process costing using WA,FIFO and STD   methods
    *Account for spoilage using recognition and non recognition methods

    Recap of concepts for the Final Exam

    Week 13

    Final Examination