Issues in Accounting Education Main Section

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Instructional Case: Estimating Learning-Curve Functions for Managerial Planning, Control, and Decision-Making

David E. Stout and Paul E. Juras
Vol. 24, Issue 2 (2009), pp.195-218

Abstract: Elora Electronics, Limited (EEL), a fictitious company, manufactures sophisticated, high-tech electronic equipment. Though successful in the past, the company has seen a decline in the number of bids it has won. Management is especially concerned about the bids the company recently lost on one of its main products, a sophisticated radar system. Most of the contracts for EEL, including those for the radar system, are bid on a “cost-plus” basis. Up to this point, divisional managers have used a simple average of recent actual costs to estimate costs for contract-bidding purposes. Such a procedure was deemed useful for cost-control purposes because actual costs have consistently been below budgeted costs. However, given the changed competitive environment in which EEL now finds itself, these managers are now wondering whether the contract-bidding process can be made more successful through the use of a more sophisticated approach to cost estimation. For purposes of completing this case, assume that you were recently hired by EEL as a management accountant for the Radar Unit. For your first assignment you have been asked to use Excel (or other software, such as SPSS) to analyze and model the direct labor-hour (DLH) consumption associated with the production of radar units. (The production of these units requires a significant amount of highly skilled labor.) You have a set of historical observations to which you've been asked to fit both linear and nonlinear functions (in the form of learning curves); these observations relate to the last 14 radar units produced by EEL. Among other tasks, you will need to generate and interpret for management the statistical output associated with the model-fitting task and to recommend to the company a particular model for cost-estimation purposes. There is an expectation that the model you recommend will be used by EEL for contract-bidding purposes. To prepare adequately for your cost-analysis project, you will need to complete two “refresher” tutorials presented as appendices to the case.

Teaching Cost Management: A Strategic Emphasis

Edward J. Blocher
Vol. 24, Issue 1 (2009), pp.1-13

Abstract: Cost management has been tied in the past to the concepts of score-keeping, attention directing, and problem solving, but the expectations of accountants in today's world have changed dramatically, extending well beyond these concepts. This paper presents a different way to view cost management. It is not a planning or decision-making focus, but instead a focus on helping the organization be successful, through the implementation of an effective competitive strategy. Strategy is implemented by the appropriate use of cost management methods. The “why strategy?” question is answered by a review of survey findings, a discussion of the potential errors in nonstrategic decision making, and a review of changes at the Institute of Management Accountants that reflect a greater emphasis on strategy, including a new definition of management accounting which focuses on strategy. The paper shows the strategy-based content flowcharts for each of the three courses: management accounting, cost accounting, and advanced management accounting.

Bak Funeral Home

Jack M. Ruhl and Larry Wilson
Vol. 23, Issue 3 (2008), pp.481-493

Abstract: Bak Funeral Home is based on a real situation occurring at a family-owned funeral home in the northern United States. Following the founder's death, his family must decide what to do with the business and tangible assets. Students assume the role of a CPA called upon to advise the client on how to pass the business to the next generation. They encounter an ambiguous situation in which both monetary and nonmonetary factors must be carefully considered. The case is suitable for use in: an undergraduate cost accounting course; an entrepreneurial course in family business issues; or an introductory cost accounting class at the M.B.A. level. Additional topics covered include: the pro forma cash flow statement; business valuation; cash flow return on investment; and business risk.

Kofenya: The Role of Accounting Information in Managing the Risks of a New Business

Brian Ballou and Dan L. Heitger
Vol. 23, Issue 2 (2008), pp.211-229

Abstract: With its focus on two student entrepreneurs who successfully opened an espresso café, this case illustrates how accounting information can be used to measure performance and control business risks with respect to new businesses. Also, this case encourages you to consider the potential financial outcomes of various risk response options linked to strategic and operating decisions. By completing this case successfully, you should develop a better appreciation for business model development, business process identification, performance measurement, and risk assessment.

Jamestown Electric Supply Company: Assessing Customer Profitability

Brian Ballou and Dan L. Heitger
Vol. 23, Issue 2 (2008), pp.261-281

Abstract: Customers increasingly demand that companies offer a wide variety of products and services. As a result, many companies spend millions of dollars conducting profitability analyses of their customers. For instance, the banking industry alone spends an estimated $500 million per year on customer profitability analyses. Accordingly, customer profitability analysis is listed as one of the recent major developments in managerial accounting (Cotton 2005). Customer profitability analysis refers to the practice of estimating the profitability of individual customers and identifying both customers that create value for the company and, just as importantly, those customers that destroy value. Effective customer profitability analysis provides the company with a strong competitive advantage by improving key strategic and operating decisions involving customer selection and retention. For example, Sprint Nextel drew the attention of investors, analysts, and customers alike when it “fired” 1,000 of its worst customers via a form letter (Srivastava 2007). This case reflects the experiences of several international companies in the automotive supply industry and provides you with an opportunity to enhance your knowledge about customer profitability. First, the case demonstrates the importance of customer profitability analysis. Second, the case enhances your ability to perform customer profitability analysis. Third, it helps you improve your critical thinking and analytical reasoning skills. Finally, the case enables you to integrate business knowledge across functional boundaries.

Baier Building Products, Inc.: Performance Incentives and Variance Analysis in Sales Distribution

Barbara A. Lamberton
Vol. 23, Issue 2 (2008), pp.281-291

Abstract: Faced with price volatility and changes in key personnel responsibilities, a small privately held distributor of commodity building products with limited resources needs to re-evaluate its performance incentives. The company's owners and controller need your help in assessing the extent to which the current compensation scheme has encouraged opportunistic behavior, resulting in large commissions without significant movement toward the company's strategic objectives. By completing this case successfully, you will learn how to develop a balanced scorecard suitable for a small sales distribution business and learn how to compute and interpret marketing variances.

Beta Auto Dealers: Integrating Disparate Data to Solve Management Problems

Marianne Bradford, Janet A. Samuels, and Robert E. Wood
Vol. 23, Issue 2 (2008), pp.309-327

Abstract: In this case, you will examine imprecisely stated management problems and decide what data are needed from disparate legacy systems to solve these problems. The general management issues at Beta Auto Dealers, the car dealership in this case, include sales, marketing, and customer visit information. Since data are stored in multiple information systems built upon outdated flat file architecture, management questions cannot be easily answered.This case encourages you to demonstrate your skills in both information system design and use. Given data extracted from the “legacy systems” in Microsoft® Excel worksheets, you will create business process maps, use your accounting and business knowledge to determine querying objectives for Beta's management, design a conceptual data model, create a Microsoft® Access database, and import data. Finally, using your database query skills, you will build relevant queries and interpret their results in order to improve management's decision making.

Developing an Operating Budget for Extended Family, Inc.: A Not-For-Profit Human Service Organization

Karyl A. Mammano and Thomas N. Tyson
Vol. 23, Issue 1 (2008), pp.129-145

Abstract: In this case, you will develop an operating budget for Extended Family, Inc., a not-for-profit (NFP) human service organization. Completing this budget successfully requires a high level of decision making, as you must determine the number of cost pools and allocation bases upon which common costs are to be allocated to the organization's three revenue-generating programs. This case will expose you to many real-world issues that NFP financial managers confront when they prepare operating budgets. These issues include: (1) allocating revenue among programs; (2) distinguishing among program, administrative, and fundraising costs; (3) properly treating temporarily restricted contributions; and (4) facing an array of ongoing financial challenges connected with NFPs.

Svenska Handelsbanken: Controlling a Radically Decentralized Organization without Budgets

R. Murray Lindsay and Theresa Libby
Vol. 22, Issue 4 (2007), pp. 625-641

Abstract: Svenska Handelsbanken was the large national Swedish bank that provided the exemplar case for the idea that organizations could abandon budgets and operate successfully, or perhaps operate even more successfully, without them. In this case, Nancy Cartwright, a senior executive in a large Canadian financial services corporation, had just been introduced to the Handelsbanken case and the Beyond Budgeting idea. She was intrigued by the idea that companies could abandon budgets while implementing a new more decentralized model of management control. She wondered whether these ideas could work beyond Handelsbanken and, in particular, outside of Scandinavia.

Economic Experiments for the Management Accounting Classroom

Steven T. Schwartz, David E. Wallin, and Richard A. Young
Vol. 22, Issue 3 (2007), pp. 515-535

Abstract: Abstract not available.

Falcon, Inc.: Performance Evaluation of Foreign Subsidiaries

Mahendra R. Gujarathi and Vijay Govindarajan
Vol. 22, Issue 2 (2007), pp. 233-246

Abstract: This multifaceted, decision-oriented case requires you to address several issues in performance evaluation in an international context. In the process of reviewing the annual performance of its foreign subsidiaries, Falcon's CEO raises concerns about the performance evaluation metric and the effect of exchange rate changes on the competitive positions of foreign subsidiary managers in Denmark and Japan. The case requires you to assess the strengths and weaknesses of Falcon's performance evaluation system, examine the appropriateness of country managers' responses to exchange rate changes, understand the difference between evaluation of business units and their respective managers, and recommend improvements in the performance evaluation system.

Using Cases Published in Issues in Accounting Education: Categories and Topics at a Glance

Marlys Gascho Lipe
Vol. 21, Issue 4 (2006), pp.417-431

Abstract: To increase accessibility, cases published in Issues in Accounting Education from its inception through November 2006 are categorized by course area. Course categories include accounting information systems, auditing, financial accounting, managerial/cost accounting, and taxation. Specific course topics addressed in each case are identified. Additional tables list cases addressing ethical issues and cases using governmental or not-for-profit entities and firms in the service sector.

An Examination of Faculty Perceptions of Academic Journal Quality within Five Specialized Areas of Accounting Research

Suzanne Lowensohn and Donald P. Samelson
Vol. 21, Issue 3 (2006), pp.219-240

Abstract: In recent years, the research and publishing efforts of accounting academicians have become increasingly more specialized, as evidenced by the popularity of American Accounting Association (AAA) specialized sections and the increase in specialized academic publications (Herron and Hall 2004; Zeff 1996). Despite the trend, there is evidence that specialized areas are under-represented in the academic accounting journals typically regarded as top-tier (Bonner et al. 2006) and minimally considered in journal quality studies (Bean and Bernardi 2005). This study identifies topquality research publication outlets in five specialized areas of accounting research (behavioral, taxation, government and nonprofit, management accounting, and information systems), as perceived by accounting faculty familiar with these areas. We survey members of five AAA sections regarding journal quality and the effect of journal quality on promotion and tenure. We find that there are multiple outlets for high-quality research in specialized fields, but that many of these are relatively new and overlooked in prior studies. Also, the findings demonstrate that accounting academics in at least two specialized areas of accounting research (government and nonprofit, and information systems) may face difficulties substantiating the quality of their research.

Using 10-K Reports Brings Management Accounting to Life

E. Michael Bamber and Linda Smith Bamber
Vol. 21, Issue 3 (2006), pp.267-291

Abstract: The accounting profession and business community have called for educators to present accounting in more realistic business contexts. Annual reports and 10-Ks provide a wealth of information that brings accounting to life, but use of these reports is typically confined to financial accounting courses. The first objective of this paper is to describe a process by which instructors can use a real companya's 10-K to create a series of mini-cases for cost and management accounting courses. These cases are intended to bridge the gap between typical end-of-chapter problems and full-blown Harvard-style cases. A series of cases based on the same company not only increases student interest, but is also an efficient way to help students understand and start to grapple with the ambiguity and complexity inherent in real-world management accounting (factors absent from most structured textbook problems). Applying a variety of different management accounting tools and techniques to the same company helps students integrate what can appear to be a large set of loosely related topics, and better appreciate the broad role management accounting plays in supporting strategic business decisions.Our second objective is to provide a specific illustration of a series of 10-K-based cases. We have successfully used these cases in both the undergraduate junior level cost/management accounting course, and in M.B.A. introductory core and elective courses.

Q-Dots Incorporated: Assurance for a Nanotechnology Buyout

Fred Phillips and Doug Kalesnikoff
Vol. 21, Issue 2 (2006), pp. 147-156

Abstract: Q-Dots Incorporated is a nanotechnology firm that claims to be the original inventor and developer of quantum dots—a technology that has far-reaching applications in fields ranging from electronic consumer products to scientific discovery. The majority owner of Q-Dots is a scientist at heart, and wants to completely remove herself from the commercial side of her work. She has received a buy-out offer from her management team on which she has requested your firm's advice. Drawing on your knowledge of performance measurement and assurance, you will prepare a memo that analyzes how your firm will respond to her request.

A Note on the Roles of Aggregation and Delay in Management Control

Anthony D. Nikias, Steven T. Schwartz, and Richard A. Young
No. 3, August 2005, pp. 273-294

Abstract: Accounting information is often produced in an aggregate format and is delayed in its arrival. This teaching note examines the effects of aggregation and delayed arrival in the context of management control. One might expect that a reduction of information about managerial performance would reduce the efficiency of incentive schemes designed to increase goal congruence within the firm. Contrary to this intuition, aggregation, which reduces information, in some circumstances increases the efficiency of incentive schemes. This potential improvement in efficiency results because under aggregation the superior can exploit the subordinate's uncertainty about his future compensation. However, the resultant information loss from aggregation is generally costly, and these costs may outweigh the benefits of aggregation. We further illustrate that delayed arrival of information may allow an owner to enjoy the benefits of aggregation without incurring its costs. The approach taken in this note is similar to Antle and Demski (1988), in that the discussion is centered on numerical examples and placed within the context of a simple model of management control that is accessible to upper-level undergraduate and master's students. The advantage of this approach over having students go directly to the academic literature is that the simple linear structure of the illustrations facilitates construction and solution of numerical examples using spreadsheet analysis and also exposes the intuition more easily.

Using the Team-Learning Model in a Managerial Accounting Class: An Experiment in Cooperative Learning

Kathryn A.S. Lancaster and Carolyn A. Strand
Vol.16, No.4, November 2001, pp.549-568

Abstract: This paper reports on an experiment at one university where the professor changes two lecture-based managerial accounting classes to cooperative learning classes based on the Team-Learning Model advanced by Michaelsen (1998). For the professor who would like to implement cooperative learning, we provide a description of our experience with the Team-Learning Model. In addition, we investigate academic performance and student perceptions regarding the cooperative learning format. Although we do not find academic performance or student attitudes to differ significantly between the two learning environments, we document additional insights on cooperative learning, which extend the literature regarding this pedagogical method in accounting education.

The Role of Behavioral Research in Management Accounting Education in the 21st Century

Jacob G. Birnberg
Vol.15, No.4, November 2000, pp.713-728

Abstract: Behavioral accounting research (BAR) has a long history in management accounting. It has not had as significant a presence in the management accounting courses. It has tended to be relegated to the responsibility accounting chapter in textbooks. Thus, the extent to which behavioral materials appeared in a course depended on the interests of the instructor. It can safely be described as a matter of taste. In this paper the history f management accounting dating back to the end of World War II is divided into three periods. In each period, the extent of behavioral materials in the management accounting curriculum is reviewed. These periods, called the "cost accounting," "modern management accounting," and "post-modern management accounting" periods, reflect increasing emphasis on behavioral materials in the management accounting courses. The paper focuses on the reasons why the demand for behavioral material in the management accounting curriculum is likely to increases and offers conjectures about what form those materials will tale. It is, implicitly, also a call for research on the issues discussed here.

An approach to Organizing a Management Accounting Curriculum

Peter C. Brewer
Vol.15, No.2, May 2000, pp. 211-236

Abstract: In recent years, numerous tools such as activity-based costing, the balance scorecard, and target costing have gained prominence within business organizations (Kaplan and copper 1998; Kaplan and Norton 1996; Ansari et al. 1997). Nonetheless, traditional management accounting practices such as standard costing and contribution margin analysis continues to be prevalent (Szendi and Elmore 1993). The traditional topics, when coupled with all the recent advancements, creates a sizable body of knowledge that presents a challenge to management accounting educators, who bear the responsibility of organizing this subject matter into a coherent whole. In an effort to aid professors wrestling with this challenge, this article presents a new framework for organizing an entire management accounting curriculum. The article also includes one possible application of the framework that is being used at Miami University. The benefits of adopting the framework include: (1) less redundancy within the curriculum, (2) logical distinctions between the topics taught in each course, and (3) more opportunities for in-depth coverage of particular content areas.

The Balance Scorecard: A Potential Tool for Supporting Change and Continuous Improvement in Accounting Education

Otto H. Chang and Chee W. Chow
Vol.14, No.3, August 1999, pp. 395-412

Abstract: Rapid changes in the technological and competitive environment are posing serious challenges to accounting education. Meeting these challenges will required accounting educators and programs to undergo fundamental changes and to continuously seek ways to increase the value of their contributions. This article illustrates how the balanced scorecard may be used by accounting educators to stimulate, guide and sustain such continuous improvement efforts. Survey and interview responses from 69 accounting department heads are generally supportive of the balanced scorecard's potential and benefits to accounting programs. These department heads also provide suggestions on the items that can comprise an effective balanced scorecard for an accounting department, as well as factors that can affect its successful implementation.

Capital Budgeting: Some Exceptions to the Net Present Value Rule

Anil Arya, John C. Fellingham and Jonathan C. Glover
Vol.13, No.3, August 1998, pp.499-508

Abstract: Textbooks tend to emphasize the next present value (NPV) rule, often arguing that it is theoretically superior to other methods. Yet other methods, many of which do not involve discounting, are also used in practice. Hence, one of two conclusions can be drawn: (1) firms are making suboptimal decisions or (2) the assumptions underlying the NPV rule are not always met in practice. The purpose of this paper is to present simple numerical examples wherein applying the NPV rule leads to erroneous decisions. The examples highlight the assumptions underlying the NPV rule.

Using a System Perspective in Cost/Management Accounting to Teach Learning and Thinking Skills

Penelope Sue Greenberg
Vol.11, No.2 , Fall 1996, pp.297-313

Abstract: The purpose of this paper is to illustrate how learning and thinking skills can be enhanced by integrating a systems perspective into the cost/management accounting course. Five metacognitive skills (motivation, attention, organization, elaboration and monitoring) are needed for students' learning to learn and their development of higher level thinking skills. A systems approach for teaching cost/management accounting is presented which can be used to develop these skills. The systems approach not only enhances the development of metacognitive skills, but also facilitates the students' transition to the profession by emphasizing the environment in which managerial accounting information is used. The approach incorporates the skills into the teaching of domain-specific (in this case, cost accounting) knowledge. The respective roles of the instructor and the student in using the systems perspective to develop metacognitive skills are identified. Sample course materials are presented.

Interpreting and Measuring Operating Leverage

Richard A. Lord
Vol.10, No.2 , Fall 1995, pp.317-330

Abstract: This paper has two objectives. First, the relationship between changes in the degree of operating leverage and break-even point with changes in fixed and variable costs is explored. It is shown that changes in these measures are positively related to changes in both fixed and variable costs. In fact, the present study shows that it is possible for fixed costs to rise while unit variable costs fall and, still for both the degree of operating leverage and break-even point to decrease. This is contrary to the impression given in many accounting and finance texts. Second, the study examines alternative methodologies for calculation of the degree of operating leverage and the interpretation of the different signs and magnitudes of the measures. There are important differences in the several methods of computing the degree of operating leverage0 which can produce misleading notions about he firm's operating characteristics.

Cooperative Learning Activities: Managerial Accounting

Lucia E. Peek, Charlene Winking and George S. Peek
Vol.10, No.1 , Spring 1995, pp.111-126

Abstract: The Accounting Education Change Commission (AECC) has urged faculty members to move away from lecture format and to experiment with new instructional methods where students become active participants in the learning process. The Commission suggests that students learn best by doing and should be encouraged to work in groups on unstructured problems. This paper provides a discussion of the concepts of cooperative learning which can be used to enhance students' active participation in the learning process. Cooperative learning techniques are formal structured group methods that have been widely used across many disciplines and grade levels. We present four lessons based on cooperative learning techniques which have been used successfully in an introductory managerial accounting principles class.

Some Performance and Attitude Effects on Students in Managerial Accounting: Lecture vs. Self-Study Courses

Frank P. Daroca and Mahmoud M. Nourayi
Vol.9, No.2 , Fall 1994, pp. 319-329

Abstract: Because of changing student populations and budget constraints, teaching via traditional lecture and discussion classes (TC) has been questioned because of relative cost inefficiency when compared to self-study classes (SSC). This study examines student performance on examinations, and attitude changes towards accounting and business, by comparing managerial accounting courses across three semesters in TC and SSC modes. It was found that students earned similar grades in either format. This supports arguments in favor of less expensive methodologies. However, the study also found that students with higher SAT scores (and higher grades) had a positive shift in their attitude toward accounting and business in TC; this did not occur in SSC. Implications concerning live instruction and AECC recommendations are considered.

The Learning Curve: Wright's Model vs. Crawford's Model

Shu S. Liao
Vol.3, No.2 , Fall 1988, pp. 302-315

Abstract: This paper discusses the difference between two different learning curve concepts, the cumulative average model (Wright's model) and the incremental model (Crawford's model), and illustrates why the latter has gained the favor of practitioners and how it is used in practice. We recommend that cost and managerial accounting instructors focus on the incremental unit concept.

A Graphic Approach to Variance Analysis Emphasizes Concepts Rather Than Mechanics

James R. Martin and Eugene J. Laughlin
Vol.3, No.2 , Fall 1988, pp.351-364

Abstract: This paper demonstrates how a graphic approach to variance analysis can be used as a supplement to the usual diagrammatic and algebraic techniques in order to emphasize the concepts involved. The approach involves placing a series of transparency overlays on an overhead projector to produce a logical progression of ideas that provides the student with visual impressions of the analysis. Illustrations of the graphs for several types of analysis are provided along with discussions of how the presentations may be developed in stages to provide a more effective learning experience for students. The paper also includes a discussion of how a variety of extensions to the usual types of variance analysis may be incorporated into the graphic approach. The visual impressions provided by the graphic illustrations enhance the students' understanding of the underlying concepts and establish the foundation for a discussion of responsibility accounting, the concept of controllability, the problems of establishing points of control, and the broader concept of management by exception.

Direct Material Variances: Review of the Mix and Yield Variances

Edward A. Becker and K.J. Kim
Vol.3, No.1 , Spring 1988, pp.1-16

Abstract: Various articles and textbooks have developed different models for the calculation of the direct material variances. This has led to considerable confusion. This paper examines the area of direct material variance, provides definitions, and establishes evaluation criteria. Correct calculation of direct material variances (i.e., price variance, direct material mix variance (MV), and direct material yield variance (YV)) are a function of the production function assumed and the calculation model's ability to comply with the established variance analysis criteria. The three production functions are (1) partial linear substitution, (2) the fixed proportion production function, and (3) the nonlinear production function. The three criteria are (1) the computational models of MV and YV must be constructed in conformity with their definitions, (2) the computational models of MV and YV must be consistent with the characteristics of the underlying production function, and (3) the total of MV and YV must be equal to the total direct material quantity variance. This paper reviews the existing direct material variance calculation models. It suggests that Hasseldine's fixed-proportion production function model is the only one that meets the criteria and recommends its use. For partial linear substitution, this paper recommends the model proposed by Kellogg and Leininger, and for the nonlinear production function, none of the existing models fit all of the established criteria, so this paper develops a new model and recommends its use.

Capital Investment Analysis: The Index Method

Keith Wm. Fairchild and Dennis Bline
Vol.3, No.1, Spring 1988, pp. 72-78

Abstract: Adjusting for inflation in the analysis of capital investments can be achieved by employing either nominal cash flows and discount rates, or real cash flows and discount rates. This paper introduces a third methodology that is consistent with both the nominal and real approaches, yet simplifies the procedure through the use of an index that simultaneously adjusts for differential rates of inflation in the cash flows and general price levels. The index is the ratio of one plus the nominal required rate of return, divided by one plus the rate of inflation in a particular cash flow, and yields the appropriate discount rate for implementation of the technique.

Identifying a Common Body of Knowledge for Management Accounting

Gerald H. Lander and Alan Reinstein
Vol.2, No.2, Fall 1987, pp.264-280

Abstract: A hallmark of any profession is the presence of a common body of knowledge (CBK) whose parts can be defined and defended. The CBK determines the professional requirements of the beginning management accountant, the content of professional examinations, and the curricula that provide that knowledge. Using Flanagan's Critical Incident Technique, interviews were held with 41 management accountants from 11 Fortune 100 firms. The results of the interviews helped form a questionnaire to establish the content of a CBK for management accounting. Based upon responses to questionnaires, a CBK was identified and validated. This CBK consists of 13 management accounting objectives and 168 specific knowledge items. We compared the results of our study with those of similar studies to help validate the CBK.

A Matrix Solution to Process Cost Problems

Sara H. Dinius
Vol.2, No.1, Spring 1987, pp.44-56

Abstract: Process cost problems are unnecessarily confusing to students because the traditional solution approach is not sufficiently organized. In response to this difficulty, a procedure is described that facilitates solving these problems. Control of costs and units is initially established in a Work in Process account, and a matrix format is used to organize equivalent unit and cost allocation calculations within the comprehensive framework.

Integrating the Major Concepts and Techniques of Cost and Managerial Accounting: A Recommendation

James R. Martin
Vol.2, No.1, Spring 1987, pp.72-84

Abstract: This paper provides an illustration and recommendation concerning how cost accounting instructors and textbook authors can help students acquire a better understanding of the major concepts and interrelationships in cost and managerial accounting. It involves integrating the master budget, standard absorption costing (including alternative denominator activity levels), and standard direct costing with an underutilized technique referred to as the income statement approach to profit analysis. Combining these techniques provides an effective method of revealing how the major topics in cost accounting are connected and a powerful learning experience for accounting students.

Teaching Process Costing

G.H. Partington
1984, pp.75-80

Abstract: Students have long experienced difficulties in tackling process-costing problems. This paper outlines a problem-solving method which can help students overcome these difficulties.

Teaching Managerial (Cost) Accounting with Electronic Spreadsheet Software

Frederick H. Wu
1984, pp.81-97

Abstract: This paper attempts to show that the use of electronic spreadsheet software (ESS) in teaching managerial (cost) accounting can accomplish two objectives. First, students' learning can take place more effectively since ESS requires students to think analytically. The construction of accounting procedures in ESS and simulation through the constructed procedures in ESS make it mandatory that students understand the logical relationships underlying accounting procedures. ESS makes simulation easy to understand as well as to apply. Second, accounting schools are responsible for preparing students to enter the accounting profession, they can no longer teach students using only traditional manual accounting procedures. The second objective is a logical consequence of the first objective.