AIR Summer 2013

Using the Seiler Model for Standard Costs Variance Analysis

Accounting students often have great difficulty in comprehending standard cost overhead variance analysis. As a result, many students end up merely memorizing the formulas for calculating such variances and overlook an underlying unity. Accounting instructors also may feel frustration in teaching standard cost overhead variance analysis and may search for an easier approach to learning this important topic.
 
The Seiler Model presents a diagrammatic method of organizing the data needed for overhead variance calculation. Additionally, this simple diagram makes clear the underlying sources of overhead variances, thereby facilitating an understanding of their cause and meaning. There is no need for students to memorize the various calculation formulas. Even when encountering an extremely complex and detailed situation, calculation of overhead variances is straightforward. Read More…


Why Accounting? Questions and The Evolution of Accounting Concepts

Once upon a time, long, long ago, accounting began to reduce events to numbers to capture and bring meaning to data and it was good. Concepts were agreed upon and accounting techniques evolved to analyze and resolve business issues. This article is about why concepts came first and are foundational to understanding accounting, especially managerial accounting. Read More…


A Practice Set for Use With the Cognitive Apprenticeship Approach to Teaching Introductory Accounting and Tests of its Effectiveness

The objective of this project was to develop a short practice set to be used as a culminating project in an introductory accounting course and used in a manner consistent with the cognitive apprenticeship approach to teaching. In the cognitive apprenticeship model, the educational process starts with students following and observing the work of an expert. Following that, students work independently but can access the help and support of the expert if needed. Finally the students reflect on the work done and identify any deficiencies. Read More…


Teaching Process Costing

Process costing is one of the most vexing areas in all of cost or managerial accounting. Compared to job order costing it is typically seen as confusing and cumbersome. I have developed over the past ten years of teaching cost accounting what I believe is an effective “process” for teaching process costing. I will explain my method in four steps followed by some suggested teaching tips. This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses. Contributor:
Ronald R. Rubenfield, Robert Morris College
 
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Analyzing Overhead Variance Without Utilizing a Single Formula

The purpose of this article is to address the notion that overhead variance analysis is a topic that is too difficult for the basic Managerial Accounting course. Many faculty members feel that since overhead analysis appears to be “formula driven,” it is not worth covering. The authors feel that with the increase in importance on overhead costs in virtually all organizations, the deletion of this topic could significantly decrease a firm’s ability to control cost. Read More…


Accounting Instructors’ Report, Summer 2013: Table of Contents

TRENDS
Why Accounting? Questions and The Evolution of Accounting Concepts
Susan Crosson, Emory University ARTICLES
Analyzing Overhead Variance Without Utilizing a Single Formula

James M. Emig, Villanova University
Robert P. Derstine, West Chester University
Thomas J. Grant, Kutztown University TEACHING CASES
A Practice Set for Use With the Cognitive Apprenticeship Approach to Teaching Introductory Accounting and Tests of its Effectiveness

Joseph C. Ugrin, Kansas State University
Katherine Wood, Kansas State University TEACHING TECHNIQUE
Teaching Process Costing
Ronald R. Rubenfield, Robert Morris College Using The Seiler Model for Standard Costs Variance Analysis
Carl Read More…