Chabot College
Fall, 2002
Course Outline for Business 4
COST ACCOUNTING
Catalog Description:
4 - Cost Accounting
3 units
Principles of cost build up and techniques for gathering cost, cost control, job order, process
costing, managerial use of cost data, emphasis on application of principles. Prerequisite:
Business 1B (completed with a grade of C or higher). 3 hours.
Prerequisite Skills:
Before entering the course, the student should be able to demonstrate:
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an understanding of transactions germane to corporations;
an understanding between the difference in the accounting process of the corporation as
contrasted to other business forms;
an understanding of long-term liabilities, bonds, and present value tables;
the ability to process transactions dealing with debt and stock investments;
an understanding of statement of cash flows;
the ability to analyze and interpret financial statements by use of ratio, trends, and
comparisons;
an understanding of managerial accounting, manufacturing costs, fixed and variable
costs, standard costs, break-even analysis, product costing, job-order costing;
an understanding of cost-volume-profit analysis;
an understanding of role of budgeting, decision making, and use of present value tables.
Expected Outcomes for Students:
Upon completion of this course, the student should be able to:
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perform accounting procedures in a manufacturing environment;
perform accounting transactions for materials inventory;
demonstrate transactions involving direct labor and factory overhead;
demonstrate job order and process costing principles;
perform standard costs relating to materials, labor, and factory overhead;
demonstrate cost analysis for decision making.
Course Content:
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Introduction to cost accounting
a. use of cost data
b. elements of manufactured cost
c. flow of costs
d. illustrations of accounting for manufactured costs
e. standard cost system
f.
organizations influencing cost accounting
Accounting for materials
a. materials control procedures
b. accounting for materials
c. scrap, spoiled goods, and defective work
Accounting for labor
a. wage plans
b. controlling labor costs
c. accounting for labor costs
d. payroll
e. special labor cost problems
Chabot College
Course Outline for Business 4, Page 2
Cost Accounting
Fall 2002
Course Content (Continued)
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Accounting for factory overhead
a. analyzing semi-variable factory overhead costs
b. budgeting factory overhead costs
c. accounting for factory overhead
d. applying factory overhead to production
e. calculation of budget and volume variances
Job order cost accounting
a. comprehensive illustration of job order accounting
b. chart of accounts, trial balances, books of accounts, worksheet, financial
statements, adjusting and closing entries
Process cost accounting
a. material, labor, and factory overhead costs
b. product cost
c. work in process inventories
7.
Process cost accounting--additional procedures
a. equivalent production
b. units lost in production
c. units gained in production
d. joint products and by-products
8. Standard cost accounting
a. types of standards
b. standard cost procedures
1) materials and labor
2) variances
9. Standard cost accounting-factory overhead
a. two-variance method of analysis
b. budgeted factory overhead
c. three-variance method of analysis
10. Cost analysis for management decision making
a. direct costing and absorption costing
b. segment reporting for profitability analysis
c. cost volume profit analysis
d. costs for decision making
e. differential cost analysis
f.
distribution costs
Methods of Presentation:
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Lecture
Discussion
Problem solving
Assignments and Methods of Evaluating Student Progress:
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Typical Assignments:
a. Take home problems
b. Reading assignments
Methods of Evaluating Student Progress:
a. Graded problems
b. Examinations
c. Final examination
Chabot College
Course Outline for Business 4, Page 3
Cost Accounting
Fall 2002
Textbook(s) (Typical):
PRINCIPLES OF COST ACCOUNTING, Schmiedicke, Nagy, Vanderbeck, Southwestern, 2000
Special Student Materials:
Calculator
mc 12/19/01
COBUS4