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Karen Grossman Tabak

• ABAC 2210 phone 529-9678• Office Hours Tuesday & Thursday 8:15-9:15 &

12:15-2:15 (but PLEASE schedule an appointment if you can 529-9418)

• tabak@maryville.edu• cpaecon@aol.com• accweb.itr.maryville.edu/tabak

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• We will be using a seating chart

• Please decide where you want to sit & sit there next class

• There are advantages & disadvantages to the seats.

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Rules of the Room

Respect EquipmentRespect each otherRemember you are here to learnDon’t rely on equipmentBackup! Backup! And Backup again!

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Rules for this Class

• Come to class (preferably, on time!!!)• Do your homework - before class!• ALWAYS CHECK THE FRONT TABLE FOR HANDOUTS!!!!• Act like you are here to learn. (EVEN ON DAYS YOU ARE

NOT IN THE MOOD - PRETEND IF YOU MUST.)• Relax about exams• Don’t make fun of my inability to spell.• Don’t make fun of my inability to add without a calculator.• Do not play games nor search the internet during class

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RULES ON HOMEWORK• Do the HOMEWORK• DO NOT PLAGIARIZE MY WORK• I WILL COLLECT HOMEWORK

OCCASIONALLY• SAVE! SAVE! SAVE!• AND THEN SAVE AGAIN• DO NOT PLAGIARIZE MY WORK• SUCCESS IN THIS CLASS IS LIKE BAKING A

CAKE – IF YOU FOLLOW THE RECIPE, IT WILL COME OUT OK!

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Supplies

Need the right ingredientsDisks – bring one to class (name)Notebook to keep your homework inBackup! Backup! And Backup again!Will need a nice notebook for

portfolio

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Syllabus

• One test is dropped• Participation and attendance are critical.• Help is available in the Academic Learning

Center. Use it!• LET’S LOOK AT THE ASSIGNMENTS SHEET• LET’S SIGN THE ACKNOWLEDGEMENT

FORM

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Computer Requirements

• You must know how to use excel• Let’s try to do a few things:• Let’s build a worksheet

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Learn the Lingo

• Chapter 1 & 2 are primarily terminology

• We will come back to Chapter 1• We will have fun in this class• You do not need to memorize

anything

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The role of Managers• DECISION MAKING• PLANNING• DIRECTING OPERATIONS• CONTROLLING

ALL WITHIN A

PRINCIPAL AGENT MODEL

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Managerial Accounting

• Enhances Decision Making• Guides Strategy and Development• Evaluates existing Strategies• Focuses efforts related to

– improving organizational performance– evaluating the contributions of organizational

units & members

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Cost Object

The thing we want to know the cost of.

Can be a product LIKE CHOCOLATE, a service, a department, even this class.

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Cost object can be many things• Could be this course - this session• Could be this course - Managerial

Accounting• Could be the accounting classes in general• Could be the business school as a whole

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You must know what the cost object is!!!!

Changing the cost object changes the nature of the cost analysis!

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Nature of Cost

• Fixed Cost• Variable Cost• Direct Cost• Indirect Cost/COMMON COSTS• NON-VALUE ADDED COSTS• Controllable cost• Uncontrollable Cost

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Manufacturing Cost Classifications

• Direct Materials• Direct Labor• Manufacturing Overhead

• indirect materials• indirect labor• other manufacturing cost

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Economic Characteristics of Cost

• Opportunity cost• sunk cost• incremental cost• average cost• marginal cost

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Video

This company makes a mazak

Use a lot of terms

WIP

CAD

AGV

Count the Direct Labor Folks

Speak with a British Accent

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Thought for the Day

There is no comparison between that which is lost by not trying, and that

which is lost by not succeeding.

Sir Francis Bacon