Advances in Accounting Education

Last updated on Aug 01, 2005

MOTIVATING STUDENT INTEREST IN ACCOUNTING: A BUSINESS PLANNING APPROACH TO THE INTRODUCTORY MANAGEMENT ACCOUNTING COURSE

Noah P. Barsky and Anthony H. Catanach, Jr.
Volume 7, 2005, pp.

Abstract: Introductory management accounting courses traditionally emphasize cost accounting topics rather than the critical role that information plays in decision-making (IMA 1999; Boer 2000; Maher 2000). Albrecht and Sack (2000) suggest that creatively redesigning the introductory management accounting course may help to reverse recent declines in accounting enrollments. The education literature also indicates that business simulations motivate student learning and may actually impact the desirability of a particular college major (Waggener 1979; Basu and Cohen 1994; Knechel and Rand 1994). Building upon Brewer's (2000) management accounting education framework and Adams et al's (1999) serial case pedagogy, the authors developed a fundamentally different delivery approach for the introductory management accounting course: the Business Planning Model (BPM). The BPM reengineers the managerial principles course in several ways: (1) it adopts a proactive management perspective that addresses strategy, risk, and process in a business planning context; (2) it relies on a serial case to introduce its unique course content and a reinforces topical coverage through a semester-long business planning simulation; (3) it uses basic consumer retail examples that leverage student business experiences in service industries, and (4) its focus on analysis and decision-making de emphasizes cost accounting topics that the profession finds less critical today. Students report that the BPM gives them an appreciation for the value of information, improves certain key business skills, and increases their interest in accounting as a field of study.

A Note on Equivalent Units Calculations: Teaching Steps vs. Teaching Concepts

Steve Buchheit, Denton Collins, and Austin Reitenga
Volume 4, 2002, pp. 105-117

Abstract: We investigate the relative effectiveness of two different methods for teaching process costing equivalent units problems. We find that a time-based approach improves student test scores relative to the traditional rule-based approach that is presented in managerial accounting textbooks. Our evidence comes from a quasi-experiment conducted on 431 undergraduate students enrolled in introductory cost accounting a major metropolitan university. Our results suggest that management accounting instructors and textbook writers should consider modifying the approach used to teach equivalent units.

Budgeting for Snow Removal Costs Using Monte Carlo Simulation: A Classroom Project

Eleanor G. Henry, Dean Crawford, and Roberta M. Lipsig
Volume 4, 2002, pp. 169-188

Abstract: The project focus is a budgeting scenario for a municipality that must plan expenditures for future snow removal costs. The project contains an actual historical data set for area snowfall and several years of variable cost data for snow removal furnished by the city. Monte Carlo simulation produces a probability distribution for snow removal costs given the uncertainty of future amounts of snow. The simulation results have direct applications in budget preparation and in performance evaluations. The project provides several benefits to students including: exposure to real-world data and budgeting problems; a review of budget preparation and variance calculation; an introduction to simulation models; practice using simple statistical method; and reinforcement of computer and spreadsheet skills. The Monte Carlo simulation uses standard Excel functions. The project is appropriate for an upper-division undergraduate or graduate course in Cost, Managerial, of Non-profit Accounting.