THE UNIVERSITY of ILLINOIS at CHICAGOCOLLEGE of BUSINESS ADMINISTRATION
DEPARTMENT of ACCOUNTING
SPRING SEMESTER 2001
Accounting 525: Management Control of Strategic Performance
Time: Wed. 6:00 - 9:00 in 2323 UH
Professor: Peter Chalos, PhD
Office: 2309 University Hall
Office Hours: Wed. 3:00 - 6:00
Telephone: 312 - 996-2869
Email: PChalos @ uic.edu
Web Address: uic.edu/~pchalos
Course Objectives
U.S. firms are at the cutting edge in designing management control systems.
The purpose of this course is to provide a
contemporary overview of control system design used by U.S. firms.
Topics include: reporting system design, budgets,
cost and revenue systems, multinational subsidiaries, activity cost
controls, reengineering and productivity
measurement, competitive benchmarking, throughput accounting, balanced
scorecard performance measures, linear
and curvilinear cost estimation, outsourcing, transfer pricing, managerial
performance measurement and incentive
schemes.
Student Responsibilities
Lectures and discussions will be held in seminar format. Significant
student preparation and participation is expected.
Exam success is directly related to class preparation and effort. Each
week a student will randomly be called upon to
lead off the discussion. Prior to each class, all students are responsible
for reading the materials to be discussed, as
well as preparing weekly assignments. Case assignments may be prepared
in teams and will be collected subsequent to
class coverage of the material. Late assignments will not be accepted.
All assignments must be word processed (Word
97). Statistical (SPSS, SAS, LINDO) and spreadsheet (Excel) applications
and the Internet directory of business
sources (Zacks, Yahoo, Edgar, Big Charts…) should be used where appropriate.
Attendance
Students are expected to attend all lectures.
Assessment
Participation 25%
Midterms 25%
Assignments 25%
Final Exam 25%
Texts
All texts are on 2-hour reserve at the UIC main library. Please treat
with care, as they are the instructor’s personal
copies.
(1) Chalos Managing Cost in Today’s Manufacturing Environment
(2) Horngren- Foster-Datar Cost Accounting: A Managerial Emphasis (10th ed.)
(3) Horngren-Foster-Datar Solution Manual (10th ed.)
(4) Merchant Modern Management Control Systems
(5) Cooper-Kaplan The Design of Cost Management Systems (2nd ed.)
(6) Kaplan-Atkinson Advanced Management Accounting (3rd ed.)
(7) Simons Performance Measurement and Control Systems
(8) Choi-Frost-Meek International Accounting
(9) Corbett Throughput Accounting
Course Schedule
Date: Jan.10
Topic Control System Design
Read Simons Ch. 3, 4, 10, Merchant Ch. 7
Assignment Hyatt Hill
Date Jan.24
Topic Technological Controls
Read Chalos Ch.1,2,3
Assignment I. B.M
Date Jan.31
Topic Multinational Operations
Read Choi/Frost/Meek Ch.10, Merchant Ch. 19
Assignment Joint Venture Controls
Date Feb. 7
Topic Earnings Forecasts
Read Simons Ch. 6, Horngren/Foster/Datar Ch. 7-8
Assignment Rackateer
Date Feb. 14, 21
Topic Competitive Benchmarking
Read Horngren/Foster/Datar Ch.10 (not 342-348, including appendix)
Assignment Industrial Cost Analysis
Date Feb.28
Topic Estimating Economies of Scope, Skill and Scale
Read Horngren/Foster/Datar 342-348
Assignment National Avionics
Date Mar. 7
Topic Throughput Accounting
Read Corbett Ch. 3, Kaplan/Atkinson Ch. 2, Horngren/Foster/Datar 687-695
Assignment California Products
Date March 14 Spring Break
Date March 21 Midterm Due
Date March 28
Topic Value Added Analysis
Read Chalos article, Horngren/Foster/Datar Ch. 22
Assignment Allied Signal Case
Date April 4
Topic Pricing Strategies
Read Horngren/Foster/Datar 422-428, Kaplan/Atkinson Ch.5,6
Assignment Kanthal Case
Date April 11
Topic Balanced Scorecard
Read Simons Ch.9, Kaplan/Atkinson Ch.8
Assignment Chemical Bank
Date April 18
Topic Performance Measurement
Read Merchant Ch. 13,14, Kaplan/Atkinson Ch.10
Assignment Enager
Date April 25
Topic Incentive Schemes
Read Simons Ch.5,11, Merchant Ch.8, 11, Kaplan/Atkinson Ch.13
Assignment McDonalds
Date May 2 Final Exam