Helen D. Adams
B A 470
Addresses economic foundations of demand, supply, and costs as basis for accounting system. Focuses on using data for evaluating performance, budgeting and financial statement analysis. Short-term and long-term decision making compared. Not open for credit to students pursuing a Business degree. Offered: A.
Students can expect to learn some accounting basics; how decisions affect accounting numbers and stock price. They can expect to become familiar with many business terms and begin to learn about interrelationships among business decisions. Much background for this leaning will be by running a computer simulated businees in teams, outside of class.
Student learning goals
Know what constitutes revenues, expenses, assets, liabilities and owners' equity and how they are generated.
Know the difference between an income statement and a balance sheet. Know what each one is, their interrelationship and what they tell us.
Know the basics of preparing budgets and using them to evaluate performance.
Know some of the costs and benefits of inventory in a retail setting.
Know the basics of how to make long run decisions using present values.
Know how to make some special decisions, such as when to discontinue a or add a segment/product and price a special order.
General method of instruction
Class will be lecture and work sessions. Readings and simulation will be done outside of class. Students will work in teams of about four students, to run a simulated company for 4 to 8 years (rounds). Each team is a company and all companies compete against one another in the same industry. Four decisions are made each year. After results are submitted each year, students get detailed information on profitability and share price. This forms the basis of how to run a business!
While there are no prerequisites, students need to allocate their time well during the quarter, especially since the class only meets once each week.
Class assignments and grading
In addition to the simulation, there will be readings, homework assignments to be handed in, quizzes in class and a midterm and final exam.
Homework, class contribution (four homeworks at 5%, and class contribution 5%) 25% Quizzes (best 4/5) 20% Simulation presentation 10% Simulation peer evaluation 10% Exams 35%