COST ACCOUNTING
ACC 236- Section: [Insert]
[Insert other course information (optional): blended, honors]
Credit Hours: 3.00
Lab Hours: 0.00
Lecture Hours:
Semester: [Insert]
Days: [Insert]
Course Begins: [Insert]
Times: [Insert]
3.00
Course Ends: [Insert]
Room: [Insert]
Instructor: [Insert]
Email: [Insert your @mchenry.edu email address or LMS information]
Phone: [Insert]
Office Hours: [Insert]
Office Location: [Insert]
Other Contact Information: [Insert]
Website (optional): [Insert]
Required Course:
Textbook(s): [Insert]
Supplies (if desired): [Insert]
Course Description:
Cost Accounting covers the concepts and procedures of a manufacturing cost accounting system and how
cost accounting can be used by management. Students learn the basic elements and costs of production as
they relate to job order and process cost systems, standard costs and variance analysis, and other areas.
Course Notes:
Course Prerequisite: ACC 152 with a grade of C or higher.
Section Notes:
[Insert if applicable]
Course Objectives:
Upon completion of this course, the student will be able to:
1. Differentiate between the functional and activity based approaches to costing and control.
2. Differentiate between a Standard Costing System, Activity Based Costing System and Full
Absorption Costing System.
3. Understand the basic concepts and tools associated with cost management systems, i.e. CostVolume-Profit.
4. Develop appreciation for Ethical Decisions as they relate to Manufacturing and Service sectors of
business.
5. Demonstrate analysis of business operations using a traditional cost management system versus
an activity-based cost management system.
6. Demonstrate understanding of Capital Investment Decision process.
Course Outline:
I.
Introductions
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II.
A.
B.
C.
D.
III.
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C.
D.
IV.
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V.
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VI.
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VII.
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VIII.
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IX.
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Basic cost management concepts
Cost assignment: direct tracing, driver tracing, and allocation
Product and Service costs
External Financial Statements for Manufacturing and Service
Functional-based and Activity-based Cost Management systems
Activity Cost Behavior
Basics of cost behavior
Resources, Activities, and cost behavior
Methods for separating Mixed costs into Fixed and Variable components.
Reliability of Cost Formulas
Product and Service costing: overhead application and job-order system.
Characteristics of the production process
Setting up the cost accounting system
Overhead application: a normal costing view
The Job-Order Costing system; general description
Job-Order Costing System: Specific Cost Flow Description
Product and Service costing: a process systems approach
Process Costing Systems: Basic Operational and cost concepts
Process Costing with no Work-in-Process inventories
Process Costing with no ending work-in-process inventories
First-in-first-out Costing Method
Weighted Average Costing Methods
Treatment of Transferred-in goods
Budgeting for planning and control
The role of Budgeting in Planning and Control
Preparing the Operating Budget
Preparing the Financial Budget
Operating Budgets for Merchandising and Service Firms
Standard Costing a functional-based control approach
Developing Unit Input Standards
Variance Analysis and Accounting: Direct Materials and Direct Labor
Variance Analysis: Overhead Costs
Mix and Yield variances: Materials and labor
Activity-based costing
Unit level Product Costing
Activity based costing system
Homogeneous pools of activity
ABC system concepts
Activity based management
The relationship of Activity-based costing and Activity-based Management
Process value analysis
Financial measures of activity efficiency
Implementing activity-based responsibility accounting
Activity-based budgeting
Shortcoming of the Traditional Master Budgeting Process
Flexible budgets for planning and control
Activity-based budgets
The behavioral dimension of budgeting
Other types of budgets
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XI.
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B.
C.
D.
XII.
A.
B.
C.
XIII.
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F.
XIV.
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XV.
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XVI.
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D.
Quality Cost Management
Costs of Quality
Reporting Quality Costs
Quality Cost information and decision making
Controlling Quality Costs
Productivity measurement and control
Productive Efficiency
Partial Productivity measurement
Measuring changes in Activity and Process Efficiency
Cost-Volume Profit Analysis
The Break-even point in units
Break-even in sales dollars
Multiple Product Analysis
Graphical representation of CVP relationship
Changes in CVP Variables
CVP Analysis and activity-based costing
Pricing and Profitability Analysis
Basic Pricing concepts
Pricing Policies
The legal system and pricing
Measuring profit
Profitability of segments
Analysis of Profit-related Variances
Capital Investment
Capital Investment decisions
Payback and Accounting rate of return: Non-discounting methods
Net Present Value Method (NPV)
Internal Rate of Return (IRR)
NPV versus IRR: Mutually exclusive projects
Computing after-tax cash flows
Capital Investment: Advanced Technology and environmental considerations
Inventory management, economic order quantity, JIT and the theory of constraints
Just-in-case Inventory Management
Just-in-time Inventory Management
Basic concepts of constrained optimization
Theory of constraints
Assignments and Grading Criteria
[Insert. Must include the value of each project, skill, exam, etc. as it relates to the final grade.]
Policies
Attendance policy: [Insert]
Late work/make-up policy: [Insert]
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Weekly Course Schedule
[Insert date of each class meeting, topics to be covered, assignment due dates, testing dates, final exam
date, etc. Table format below is optional.]
Dates of
Class
Meetings
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Course Schedule
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Teaching Schedule
The scheduling of the activities and teaching strategies on this syllabus, but not the objectives or content,
may be altered at any time at the discretion of the instructor.
Withdrawals: The last day to drop this course is [Insert date according to Important Class Dates for term
https://catalog.mchenry.edu/syllabi/Pages/default.aspx]. Failure to attend class does not constitute official
withdrawal. If students are considering a withdrawal, they should consult directly with the instructor and an
academic advisor. Students may withdraw from a class through the Registration Office, either in person or by
fax: (815) 455-3766. In their request, students should include their name, student ID number, course prefix,
number and section, course title, instructor, reason for withdrawing, and their signature. Withdrawal from a
course will not be accepted over the telephone.
Academic Support for Special Populations Students
Students with Disabilities:
It is the policy and practice of McHenry County College to create inclusive learning environments. If you
are a student with a disability that qualifies under the American with Disabilities Act – Amended
(ADAA) and require accommodations, please contact the Access and Disability Services office for
information on appropriate policies and procedures for receiving accommodations and support.
Disabilities covered by ADAA may include learning, psychiatric, and physical disabilities, or chronic
health disorders. Students should contact the Access and Disability Services office if they are not certain
whether a medical condition/disability qualifies. To receive accommodations, students must make a
formal request and must supply documentation from a qualified professional to support that request.
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However, you do not need to have your documentation in hand for our first meeting. Students who
believe they qualify must contact the Access and Disability Services office to begin the accommodation
process. All discussions remain confidential. The Access and Disability Services office is located in
Room A260 in A Building in the Atrium. To schedule an appointment to speak with the manager, please
call (815) 455-8766. Information about disabilities services at MCC can be found at:
www.mchenry.edu/access
Students in Career/Technical Programs
As a student enrolled in a career or technical education program at McHenry County College, you may be
eligible for services and assistance under the Carl D. Perkins III Grant. Grant funds are used, in part, to
assist students who are at risk of not succeeding in their educational pursuits. The traits that often prevent
students from succeeding are: economic disadvantage, academic disadvantage, disability/disabilities,
single parent, displaced homemaker, enrollment in a program in which their gender is under represented,
and limited English proficiency (LEP). The definitions of each trait are available in the Access and
Disability Services office. Students with one or more of these traits are referred to as Perkins Special
Populations Students.
If you would like to know if you are eligible for services at any time during the semester, please do not
hesitate to contact the Manager, Access and Disability Services. The office is Room A260, and phone
number is (815) 455-8676.
Additional syllabus information and resources can be found at www.mchenry.edu/syllabusinfo.
STUDENTS ARE RESPONSIBLE FOR KNOWING ALL SYLLABUS INFORMATION.
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