AC 325 COST ACCOUNTING
Course Syllabus
Marian Gratia G. Medalla, CPA,MBA
F-103, Building F. 3202480 ext. 110
e-mail address: marian_gratia@comfsm.fm
Class Day and Time/Room: M 5:30-7:00 WF 5:30-8:30/Room 5
Course Description:
This is a one-semester course that covers cost accounting system output relevant to managerial decision-making, planning
and control. The course builds on the foundation already established by the managerial accounting course completed by the
student. Topics covered include absorption/variable costing and CVP analysis, relevant costing, budgeting, financial
management, inventory and production management techniques, emerging management practices, responsibility accounting
and transfer pricing, and measurement of short- and long-run organizational performance.
A. PROGRAM LEARNING OUTCOMES (PLOs):
The student will be able to:
1.
Demonstrate an understanding of intermediate accounting principles by describing the financial reporting environment
and the conceptual framework of financial accounting, analyzing financial statements in detail, and accounting for cash and
receivables, inventories, property, plant and equipment, intangibles, liabilities, stockholders’ equity, and other special areas.
2.
Demonstrate an understanding of cost accounting systems relevant to managerial-decision making, planning and
control by solving problems involving various costing and budgeting methods; by applying financial, inventory and
production management techniques in cost accounting; and by accurately measuring short- and long-term
organizational performance.
3.
Demonstrate competence in analyzing and recording various transactions for state and local governments, the federal
government, colleges and universities, and other nonprofit organizations; in preparing and interpreting financial statements;
and in explaining differences between public and private sector accounting.
4.
Demonstrate an understanding of wide range of tax concepts with special focus on the taxation of business entities in
the United States and the Federated States of Micronesia and a minor emphasis on the individual taxation in the two
countries.
5.
Demonstrate an understanding of the statistical methods of sampling and estimating population statistics and
competence in using computer software to calculate point estimates and confidence intervals and use statistical methods to
test hypotheses, recognize trends and make forecasts to support decisions in the business/economics environment
6.
Apply knowledge acquired from accounting and other courses by solving real world accounting and general workplace
problems in a particular organization in the COM-FSM Internship Program.
B. STUDENT LEARNING OUTCOMES (SLOs) – GENERAL:
The student will be able to:
1. Develop a deeper understanding of managerial information needs and processes in an organization.
2. Describe the role of cost accounting in providing planning, controlling, decision-making and performance evaluation
information needed by the organization.
SLO PLO1 PLO2 PLO3 PLO4 PLO5 PLO6
1
IDM
2
IDM
I = Introduced
D = Demonstrated
M = Mastered
C. STUDENT LEARNING OUTCOMES (SLOs) – SPECIFIC:
The student will be able to:
General SLO 1. Develop a deeper understanding of managerial information needs and processes in an organization.
Student learning outcomes
1.1
Identify and calculate the following:
1) Cost accumulation / cost presentation.
2) Absorption / variable costing.
3) Product / period costs.
4) Cost-volume-profit analysis.
5) Contribution margin in units and dollar.
6) Break-even point in unit dollars.
7) Sale cost of goods sold, gross profit and net income.
8) Profit before and after taxes based on fixed cost.
9) Incremental analysis.
10) Degree of operating leverage.
1.2
Explain the concept of relevance and sunk costs by the following:
 Association with decision.
 Importance to decision maker
 Bearing on the future
 Outsourcing, scarce resources, sales mix and product line decisions
1.3
Describe the Master Budget and prepare the following components of budgets:
 Operating / financial
 Sales / production
 Personnel
 Capital
 Cash
 Budgeted financial statements
1.4
Explain the purpose of capital budgeting and calculate the following:
1) Cash flow using time-lines and payback period.
2) Discounted cash flow using NPV, profitability index, and IRR.
3) The effect of depreciation on after-tax cash flows.
General SLO 2. Describe the role of cost accounting in providing planning, controlling, decision-making and performance
evaluation information needed by the organization.
Student learning outcomes
2.1
Identify and describe the various elements of cost control:
·
Cost control systems and cost changes.
·
Committed vs. discretionary costs.
·
Use of budgets as a cost control tool.
·
Activity-based budgeting.
·
Program budgeting.
·
Zero-based budgeting.
2.2
Explain the following:
1) The importance if inventory management.
2) Production flow.
3) The use of flexible manufacturing systems and how they relate to computer-integrated manufacturing.
4) The theory of constraints.
5) Purchasing costs and carrying costs and how they are computed.
6) Pull systems of production control work.
7) Product life cycles and how they affect product costing and profitability.
8) Target costing/just-in-time philosophy and how they affect production.
2.3 Explain the concepts of the following:
1) Business reengineering and change.
2) Competitive force/diversity in the firm.
3) Enterprise resources planning and its potential benefits to the firm.
4) Open-book management.
5) Environmental cost control.
2.4 Explain the following:
1) The differences among various types of responsibility centers.
2) The allocation of services department costs.
3) Transfer pricing and how it is calculated.
4) The advantages and disadvantages of service transfer prices.
2.5
Describe the following:
1) The importance of a vision statement to the firm.
2) Long-run objectives vis-à-vis short-run objectives.
3) Non-financial performance measure.
4) How activity-based costing is used in long-run performance evaluation.
5) Performance measurement constraints.
D. COURSE CONTENT
1.
Absorption/Variable Costing and Cost-VolumeProfit analysis
2.
Relevant Costing
3. The Master Budget
4.
Capital Budgeting
5.
Financial Management
6.
Innovative Inventory and Production Management
Techniques
7.
Emerging Management Practices
8.
Responsibility Accounting and Transfer Pricing in
Decentralized Organizations
9.
Measuring Long-Run and Non financial
Organizational Performance
E. METHODS OF INSTRUCTION
·
Lectures, Discussions, and Demonstrations (Illustrative Problems)
·
Problem Solving and Case Analysis, with emphasis on problem solving and encouraging to think critically about
business decisions
·
Individual and Collaborative Activities – Research and Reporting
·
Guest lecturer/resource speaker
F. REQURIED TEXTS AND MATERIALS
Kinney, M.R. & Raiborn, C.A. (2011). Cost Accounting: Foundations and Evolutions. Ohio: South-Western Cengage
Learning (or most recent edition).
G. REFERENCE MATERIALS
Hansen, D.R., Mowen, M.M., & Guan, L. (2009). Cost Management: Accounting and Control. . Ohio: South-Western
Cengage Learning (or most recent edition).
Maher, M.W., Stickney, C.P., & Weil, R.L. (2008). Managerial Accounting: An Introduction to Concepts, Methods and Uses.
Ohio: South-Western Cengage Learning (or most recent edition).
VanDerbeck, E.J. (2008). Principles of Cost Accounting. Ohio: Thomson South-Western (or most recent edition).
Walther, L. (2011). Principles of Accounting. Retrieved October 25, 2011, from http://www.principlesofaccounting.com
H. COMPOSITION OF FINAL GRADES
HOMEWORK
CLASSWORK
QUIZZES
EXAMINATION
PERIODIC (MIDTERM OR TENTATIVE
FINAL) GRADE
10%
20%
30%
40%
100%
MIDTERM GRADE
TENTATIVE FINAL GRADE
TOTAL
DIVIDED BY NUMBER OF
GRADING PERIODS
AVERAGE: FINAL GRADE
XX%
XX%
XX%
2
XX%
90%-100% A
80%-89% B
70%-70% C
60-69% D
59% AND F
BELOW
I. ACADEMIC HONESTY
Any form of cheating is prohibited. Cheaters will get ZERO on that particular evaluation, and possibly be subjected to further
disciplinary actions.
J. CLASS POLICIES
1. No late assignments/class-works will be accepted. Home-works must be done at home, and not in school.
2. No special quizzes will be given, unless the reason for absence include is either to attend the funeral of a close
relative; sickness; to represent the college in an off-campus activity; or if working, if required by the employer, and a
valid documentation is presented.
3. Maximum allowable absence is 5. If your absences exceed this number, you will receive F from this class.
4. Cellular phones and other noise making devices must be set on silent mode while inside the class. Taking calls is
prohibited inside the class.
5. Tardiness from class is discouraged.
6. Anyone can get an “A”, provided he/she worked hard to deserve it.
6. Changes in the syllabus will be immediately communicated to the class.
Date
1-21
Chapter
3
Topic
Cost Behavior, Absorption vs.
Variable Costing
Cost-Volume Profit Analysis
Activity
Class Discussion/Activity: Exercises 21, 22, 26, 27, 28, 30, 31, and
35
Class Discussion/Assignment due today: Exercises 8, 12, 16, 24,
28, and 32
1-23
9
2-02
3, 9
Review and Quiz
10
Absorption vs. Variable
Costing, CVP Analysis
Relevant Costing
2-04
2-06
2-09
2-11
2-13
10
10
8
8
Relevant Costing
Relevant Costing
Master Budget
Master Budget
2-16
2-18
8
15
Master Budget
Capital Budgeting
2-20
2-23
15
Capital Budgeting
2-25
2-27
3,8,9,10,
15
16
3-02
16
3-04
18
3-06
18
3-09
13
3-10
13
3-11
12, 17,
19
3-12
3-13
Managing Costs and
Uncertainty
Managing Costs and
Uncertainty
Inventory and Production
Management
Inventory and Production
Management
Responsibility Accounting,
Support Department Cost
Allocations, and Transfer
Pricing
Responsibility Accounting,
Support Department Cost
Allocations, and Transfer
Pricing
CMS, Implementing Quality
Concepts and Emerging
Management Practices
Class Discussion/Assignment due today: Exercises 12, 13, 15, 19,
20
Class Discussion/Assignment due today: 22, 23, 25, 26, 27, 28
Review and Quiz
Class Discussion/Assignment due today: Exercises 15, 16, 19, 22,
Class Discussion/Assignment due today: 26, 30, 33, 34, 35, 42, 43,
44
Review and Quiz
Class Discussion/Assignment due today: Exercises 12, 13, 15, 19,
20
Class Discussion/Assignment due today: 22, 23, 25, 26, 27, 28
Review and Quiz for Chapter 15
Review for Midterm Examinations
Midterm Examinations
Class Discussions/Assignment due today:
Class Discussions/Assignment due today:
Quiz
Class Discussions/Assignment due today:
Class Discussions/Assignment due today:
Quiz
Class Discussions/Assignment due today:
Class Discussions/Assignment due today:
Quiz
Group Reporting/Assignment due today: Exercises 11 (p. 294),
14 (p. 495), 19 (p. 495), 22 (p. 495), 24 (p. 495); 15 (p.715), 31
(p. 719), 12 (p. 793), 16 (p. 794), 17(p. 794), 19(p. 794), 22 (p.
795)
Quiz Chapters 12, 17, 19
Review for Final Examinations
Final Examinations