|1. Description - |
|Fundamentals of activity-based costing, job-order, process cost, and standard cost accounting systems.|
|Prerequisite: ACTG 1C or equivalent experience.|
|Advisory: Eligibility for MATH 220 and ESLL 26.|
|2. Course Objectives - |
|Student will be able to: |
- complete cost-volume-profit relationships.
- prepare cost reports and working papers based on standard costs, direct costs, relevant costs, joint costs, and inventory control and valuation.
- determine costs using both job-order and process cost methods.
- understand and use cost accounting terminology.
- understand and use activity-based costing.
|3. Special Facilities and/or Equipment - |
|Access to a computer lab and Excel software. When taught as an online distance learning section, students and faculty need ongoing and continuous Internet and email access. |
|4. Course Content (Body of knowledge) - |
- Description of the accountant's role in an organization including cost terminology and the major purposes of cost accounting.
- Explain the uses of cost accounting data.
- Understand the ethical responsibilities and certification requirements for management accountants.
- Discuss the relationship of cost accounting to financial and management accountants.
- Identify the three basic elements of manufacturing costs.
- Distinguish between the two basic types of cost accounting systems.
- Illustrate a job order cost system.
- Technique of computing, cost-volume relationships, including the preparation of graphs, applications of break-even analysis.
- Compute the break-even point and the target volume needed to earn a certain point.
- Calculate the contribution margin ratio and the margin of safely margin.
- Discuss and analyze the impact of income tax on break-even computations.
- Apply CVP technique that uses the degrees of cost variability to measure the changes in volume on resulting profits.
- Computation of costs using standard costs analysis of variances, types of standard budgets, profit planning, and cost behavior.
- Describe the standards used in determining standard costs.
- Determine procedures for recording standard costs.
- Compute and analyze variances.
- Prepare journal entries to record variances.
- Perform variance analysis.
- Recognize the features of a standard cost system.
- Calculate standard costs in a departmentalized factory.
- Distinguish between actual and applied factory overhead.
- Compute variances using the two-variance method.
- Compute variances using the four-variance method.
- Compute variances using the three-variance method.
- Training in cost accounting using variable, fixed and semi-variable costs. Preparation of overhead budgets and flexible budgets.
- Identify cost behavior patterns.
- Separate semi-variable costs into variable and fixed components.
- Prepare a budget for factory overhead costs.
- Account for actual factory overhead costs.
- Distribute service department factory overhead costs to production departments.
- Apply factory overhead using predetermined rates.
- Calculate actual and applied factory overhead.
- Explain the general principles involved in the budgeting process.
- Identify and prepare the components of the master budget.
- Identify and prepare components of the flexible budget.
- Calculate the procedures to determine standard amounts of factory overhead at different levels of production.
|5. Repeatability - Moved to header area.|
|6. Methods of Evaluation - |
|Examinations, quizzes, computerized assignments, written reports, group activities, and class presentations. |
|7. Representative Text(s) - |
|VanDerbeck, Edward J. Principles of Cost Accounting. 15th ed. Ohio: Southwestern, 2011. |
|8. Disciplines - |
|9. Method of Instruction - |
|Lecture, Electronic discussions/chat, Excel and homework assignments. |
|10. Lab Content - |
|Not applicable. |
|11. Honors Description - No longer used. Integrated into main description section.|
|12. Types and/or Examples of Required Reading, Writing and Outside of Class Assignments - |
- Reading of corporate Cost Accounting Policy ‚Äì Different Samples
- Written Research Paper ‚Äì Cost Accounting Policy
- Reading of internet articles and incorporating the information into the written project
- Reading on different topics (internet / Business Journals) or accounting-related current events and/or careers
- Reading Wall Street Journal, Business Week
|13. Need/Justification - |
|This course is a restricted support course for the AA degree in Accounting. |