MERCER UNIVERSITY – STETSON SCHOOL OF BUSINESS AND ECONOMICS ACC 377.A13: Cost Accounting Summer Semester I 2010 Course Syllabus Professor: Dave Garrison Time: Wednesdays, 6:00-10:15 PM Work Phone: 770-614-3036 E-mail: dwgtiger@charter.net Fax: 1-866-585-5175 Course Description and Objectives: Welcome to ACC 377. This is a one-semester course that emphasizes the study of the utilization of cost data in planning and controlling activities. Internal and external data are woven into the planning models. Topics to be covered include the establishment of cost policies, defining fixed and variable cost parameters, the allocation of costs, budgeting and control mechanisms, functional relationships, and various costing methods such as standard costing, job order costing, and process costing. The course will emphasize practical exercises involving common problems encountered in the modern business setting. . Upon successful completion of this course, you should be able to: 1. Apply selected production costing techniques to costing activities in service and merchandising businesses. 2. To make more sophisticated use of standard costs to control production costs. 3. To use newly developed techniques, such as balance scorecard and strategic profitability analysis, to control decentralized operations. 4. To choose allocation methods for indirect costs that are appropriate to information requirements for particular management decisions. 5. To assign costs to products in a process costing system. 6. To assign appropriate transfer prices to goods in intra-company transactions in decentralized companies. Prerequisites: ACC 204 and ACC 205 Textbook and Other Materials: • Principles of Cost Accounting by Van Derbeck (14th Edition) • Associated materials such as workpapers, study guide, etc. Class Assignments and Evaluation: The following items will determine your final grade in this course: Take-Home Quizzes (15% each) Midterm Exam Final Exam 30% 35% 35% 100% ACC 377 SYLLABUS – SUMMER I 2010 The following scale will be used to assign grades: 90-100 88-89 80-87 78-79 70-77 60-69 Below 60 PAGE 2 A B+ B C+ C D F Examinations: The midterm and final examinations will take place in class on June 23, 2010 and July 14, 2010 respectively. Each will consist of a combination of multiple choice, short problem, and discussion questions. You are expected to take the exam on the date indicated on the attached schedule of classes unless you receive an excused absence from me. An excused absence is when you notify me before test time that you will miss the test because of illness, death in the family, or other extenuating circumstances (as determined by me), and then receive permission from me to miss the exam. If you have an unexcused absence for an exam, you will be given a grade of zero. Take-Home Quizzes: There will be two take-home quizzes during this course. Each will have a combination of multiple choice and short problems. You are expected to adhere to the Mercer University Honor Code in completing this assignment. Any evidence of collaboration between individuals will be brought before a disciplinary board for further review. Homework: Homework is essential for successful completion of any course. But it is especially critical in this course due to the speed at which we will cover the material and the difficulty of the material itself. A substantial part of class time will be devoted to reviewing assigned homework questions, problems, and case studies. Therefore, I encourage you to make every effort to do these assignments. Experience has shown that those who do the homework assignments typically do well on my exams. Experience has also shown that the “in-class” review of the homework assignments is wasted on those that have not prepared the work in advance. Class Format: Because of the length of the classes, you need not worry about my lecturing for four hours each Wednesday--neither of us would last very long. Classes will generally consist of approximately 2 hours of lecture, broken up over the entire evening. We will also be working on additional questions/problems, discussing assigned cases, and reviewing homework. This course will work best in an interactive environment, and I encourage you to be as involved as possible. Test Retention Policy: Your take-home quizzes will be returned to you once graded. The midterm exam and the final exam will be retained by the professor. If you would like to review the midterm exam or the final exam after they are discussed in the class following their administration, you may schedule a mutually convenient time to do so. Unless otherwise requested, all materials from this course will be saved only until the first class of the following semester session, and then destroyed. ACC 377 SYLLABUS – SUMMER I 2010 PAGE 3 Class Attendance Policy: Due to the presentation method of this course, class attendance is crucial. However, you are all adults. Attendance is not mandatory. There are only eight meetings. Therefore, each class represents over 10% of the total instructional time. Attendance will be considered in “borderline” grade cases at the end of the semester. It is your responsibility to schedule make-up exams before the final grades are due. Any exams not taken before this date will be given a grade of zero. I do ask that you call or notify me in advance if you will be absent from the class. You will be counted absent if more than thirty minutes late or if you leave anytime before the dismissal of class (provided that you have not discussed this with me). Finally, because of the large amount of material to be covered in this course, class will not usually be dismissed before the scheduled time. Please plan your schedule accordingly. University Disability Statement: Students with a documented disability should inform the instructor at the close of the first class meeting. The instructor will refer you to Richard Stilley, Assistant Dean for Student Life (tel: 678-547-6823; Sheffield 212), for consultation regarding evaluation, documentation of your disability, and recommendations for accommodation, if needed. More information can be found at www.mercer.edu/stu_suport/swd.htm Mercer University Honor Code: Mercer University Atlanta expects each and every student to maintain the highest principles of academic honesty and integrity. Violations of academic honesty represent a breach of the University's expectations and will be regarded as a serious matter. Violations include, but are not limited to the use of ideas, facts, phrases, or additional information such as charts or maps, from any sources, without giving proper credit to the original author. Using direct quotations, paraphrases, or reproductions of any material which is not the student's own authorship is also considered plagiarism. Failure to reference any such material used is both ethically and legally improper. Students are urged to read the Mercer University catalogue for detailed information. Inclement Weather: If severe weather occurs, classes will be canceled in accordance with the Associate Provost’s decision of Mercer-Atlanta. Call the Mercer weather phone for information about class cancellations—(678) 547-6111 (Atlanta) or listen to WSB 750 AM. ACC 377 SYLLABUS – SUMMER I 2010 PAGE 4 MERCER UNIVERSITY – STETSON SCHOOL OF BUSINESS AND ECONOMICS ACC 377: Cost Accounting Summer Semester I 2010 Detailed Schedule of Classes (Subject to change at the discretion of the professor) CLASS 1 DATE May 26 TOPICS TO BE COVERED Welcome and Administration Introduction to Cost Accounting Accounting for Materials Homework: 2 June 2 June 9 Exercises 1-2, 1-3, 1-4, 1-6, 1-7, 1-9 Exercises 2-2, 2-4, 2-5, 2-6, 2-7, 2-11, 2-14 Accounting for Materials Accounting for Labor Accounting for Factory Overhead Homework: 3 CHAPTERS 1-2 2-4 Exercises 3-5, 3-6, 3-11, 3-13 Case Study – Chapters 1-4 (pages 200-203) Homework: Problems 4-5, 4-8, 4-9 TAKE HOME QUIZ #1 DUE 4 June 16 Process Cost Accounting – General Procedures Process Cost Accounting – Additional Procedures Homework: 5 June 23 5-6 Exercises 4-1, 4-2, 4-4, 4-7, 4-8, 4-10, 4-12, 4-13 Exercises 5-1, 5-2, 5-5, 5-9 MIDTERM EXAMINATION (Chapters 1-4) Process Cost Accounting – General Procedures Process Cost Accounting – Additional Procedures The Master Budget and Flexible Budgeting Homework: Problems 5-1, 5-6 5-7 ACC 377 SYLLABUS – SUMMER I 2010 6 June 30 PAGE 5 The Master Budget and Flexible Budgeting Standard Cost Accounting – Materials, Labor, and FOH Cost Analysis for Management Decision Making Homework: 7-8, 10 Exercises 7-1, 7-2, 7-4, 7-5, 7-7, 7-9 Problems 7-2, 7-4 Exercises 8-6, 8-7, 8-10, 8-12, 8-14, 8-15, 8-18 CASE STUDY FROM JUNE 10 CLASS DUE 7 July 7 Standard Cost Accounting – Materials, Labor, and FOH 8-10 Cost Analysis for Management Decision Making Cost Accounting for Service Businesses/Balanced Scorecard Homework: Exercises 10-1, 10-2, 10-7, 10-8, 10-11, 10-12, 1015, 10-16 Problem 8-16 Problems 10-2, 10-9 Exercises 9-1, 9-2, 9-5, 9-6, 9-7, 9-8 TAKE HOME QUIZ #2 DUE 8 July 14 FINAL EXAMINATION (Chapters 5-10)