Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan Private College
‫كلية األمير سلطان األهلية‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
ACCT 211 – Cost Accounting
Credit: 3 (3,1,0)
Semester Commencement w.e.f. February, 20, 2010
Instructor: Mr. O.V.A.Faizal
Room # A-254
Phone # 4948539
E-mail: ovafaizal@fnm.psu.edu.sa
Office Hours: Please see the Working Schedule affixed on my door.
Course Description and Objectives:
This is a basic cost accounting course.It provide the students with broad knowledge in cost
concepts,costing systems and cost allocation.Emphasis is placed on the effect of the new
dynamic environment on the design and operation of costing systems.This course is designed
to provide students with the basic knowledge on how to use accounting information for
planning, control and decision making.The main objectivesof the course are:

To introduce students to basic cost concepts in the new dynamic environment.

To provide the students with knowledge of costing systems,and to train them on how
to accumulate,analyze and interpret cost data.
To provide the students with understanding of management’s utility of cost
information for planning,control and decision making.

Text Required:
Charles T.Horngren,Srikant M.Datar, George Foster.Cost Accounting, (12 th edition)
Prentice-Hall Inc.
Grading:
Your grade will be based on the following:
First Major Exam
Second Major Exam
Final Exam (Comprehensive)
Quizzes
Class Participation & Assignments
20%
20%
40%
10%
10%
Class participation means regular attendance, punctuality, making meaningful contributions
and showing evidence of preparation during the discussion of the issues. Considering the
very nature of the course, the instructor will solve demonstration problems in the class.
Then, you will be given a number of assignments which along with class participation will
together count for 20% of your final grade. The assignments will be straightforward cases
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan Private College
‫كلية األمير سلطان األهلية‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
where you play the role of a cost accountant. Make sure that you understand each assignment
completely before you work on it. You are encouraged to ask questions inside and outside
the classroom regarding your assignment.
Assignments must be completed by the due date. You should and make the required effort to
answer every question, as well as to develop a good understanding of the issues involved.
Preparing yourself for the coming lectures and active class participation are essential to your
learning process. Case Studies given to you would be of the companies functioning in the
real marketplace. Solving them would require you to obtain information from various
sources including the internet and would help you to follow a research oriented approach to
your learning. You are encouraged to seek guidance from your course incharge regarding the
cases.
Exams will be structured to allow you to apply what you have learned to realistic settings.
Since accounting by its nature is cumulative learning, each topic builds on all previously
acquired knowledge of the subject. Therefore, absence from class can be extremely costly
and it would not let you develop good understanding of the issues.
DN and attendance regulations
DN wil be given to the students who are absent for 16 hours or more (whether excused or
unexcused) during the semester.Attendence will be taken 5 minutes after the start time of the
class .Any student who joins the class later will be allowed to attend the lecture but no
attendence will be granted to him.
Students are required to bring text book in each class.
Please note the following instructions:
a.
b.
c.
d.
e.
Read the assigned material before class meetings.
Do not miss any class.
Pay attention to details.
Ask questions and participate in discussions.
Be regular in doing home-works and assignments because all your course is
interrelated.
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan Private College
‫كلية األمير سلطان األهلية‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
Course Calendar
WEEK 1
COST ACCOUNTING FUNDAMENTALS
Read Chapter 1
 Management Accounting, Financial Accounting and Cost Accounting
 Cost Mangement and Accounting Systems
 Strategic Dicisions and the Management Accountant
WEEK 2
COST TERMS AND PURPOSES
Read Chapter 2
 Costs and Cost Terminology
 Cost Tracing and Cost Allocation
 Cost-Behavior Patterns: Variable Costs and Fixed Costs
WEEK 3
COST-VOLUME –PROFIT ANALYSIS
Read Chapter 3
 Assumptions of CVP Analysis
 Features fo CVP Analysis
 Determining the Break-Even Point and Target Operating Inc
WEEK 4
COST-VOLUME –PROFIT ANALYSIS (Continued)
Read Chapter 3
 Using CVP Analysis in Decision Making
 Using fo CVP Analysis toPlan Variable and Fixed Costs
 Distinguish Contribution Margin from Gross Margin
WEEK 5
COSTING SYSTEMS: JOB COSTING
Read Chapter 4
 Building-Block Concepts of Costing Sysrems
 Distinguish Job Costing from Process Costing
 Outline the Seven- Step Apprach to Job Costing
WEEK 6
COSTING SYSTEMS: JOB COSTING (Continued)
Read Chapter 4
 Distinguish Actual Costing From Normal Costing
 Disoising of Under or Over-allocated manufacturing overhead.
 Job Costing in Manufacturing
First Major Examination
WEEK 8
PROCESS COSTING (CONTINUED)
Read Chapter 17
 Five Steps in Process Costing
 Calcualtion of Equivalent Units
 Prepare Journal Entries for Process Costing Systems
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan Private College
‫كلية األمير سلطان األهلية‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
WEEK 8
PROCESS COSTING (CONTINUED)
Read Chapter 17
 Use Weighted Average Method of Process Costing
 Use First-In-First –Out Method of Process Costing
 Transferred-In Costs in Process Costing
WEEK 9
Read Chapter 5



ACTIVITY-BASED COSTING
Underc Costing and Over Costing
Three Guidelines for Refining Costing Systems
Distinguish between Simple and Activity Based Costing
WEEK 10
ACTIVITY-BASED COSTING (Continued)
Read Chapter 5
 Product-Cost Cross-Subsidization
 Direct Cost Tracing, Indirect Cost Pools,Cost Allocation Bases
 Cost Hierarchies
Second Major Examination
WEEK 11
COST ALLOCATIONS
Read Chapter 13,14 ,15 &16
 Purpose of Cost Allocation
 Criteria to guide Cost Allocation Decisions
 Cost Allocation and Costing Systems
 Customer Profitability Analysis
 Strategy,Balanced Score Card
 Allocating Costs of a Department to Operating Divisions.
WEEK 12
INVENTORY COSTING AND CAPACITYANALYSIS
Read Chapter 9
 DistinuishVariable Costing from Absorption Costing
 Comparing Income Statement under Variable Costing and Absorption Costing
 Throughput Costing
 Choosing Capacity Level to Compute the Budgeted Manufacturing Cost Rate.
WEEK 13
COST INFORMATION FOR DECISIONS
Read Chapter 10
 Basic Assumptions and Examples of Cost Functions
 Choice of Cost Object,Time Horizon,Relevant Range
 Cost Estimation methods
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan Private College
‫كلية األمير سلطان األهلية‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
WEEK 14
COST MANAGEMENT
Read Chapter 18
 Spoilage,Rework,Scrap Quality as a Competitive Tool,Costs of Quality
 Relevant Costs and Benefits of Quality Improvement
 Time as a Competitive Tool
 Time Drivers and Costs of Time

WEEK 15
INVENTORY MANAGEMENT
Read Chapter 20
 Costs Associated with Goods for Sale
 Economic Order Quantity
 Just-In-Time Purchasing Inventory Management and Supply Chain Analysis
 Inventory Management and Just-In-Time Production
 Backflush Costing

Week 16
FinalExamination
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317