Course Syllabus

COURSE SYLLABUS

COST ACCOUNTING AND CONTROLLING

COLLEGE

BUSINESS AND ACCOUNTANCY

COURSE DESCRIPTION

This course is designed to orient the students to cost accounting and control framework of business. It exposes the students to different product costing procedures.  It includes accounting procedures for main products and incidental products that are manufactured simultaneously in a common process.  It encompasses the costing techniques and procedures for companies that use standard costs as a benchmark for costing the products. The students must be able to assemble financial statements prepared under standard costing procedures. While its emphasis particularly dwells on the manufacturing concern, it also highlights the elements and features applicable to the non-manufacturing concerns. The course aims to help the student understand the factors and aspects necessary to come up with an effective cost system. It explores on the details of the key components of manufacturing from one department to the next, specifically materials, labor, and overhead and transcends into the understanding the flow of costs during the work in process stage until the completion of goods. It will aid them in the production of the necessary deliverables and reports pertinent to the cost system. It will enhance the analyzing and problem solving skills of students whilst teaching them the requisites of assessing the role of cost accounting as an indispensable tool for management in planning and control for decision making. It also discussed is the impact of environmental concerns on cost.

After successful completion of this course,  the student is expected to:

At the end of the course, the students should be able to:

-        prepare the job order cost sheets under job order costing and the costs of production report under process costing.

-Demonstrate how materials, labor, and overhead costs are added to a product at each stage of the production cycle. 

-construct the financial statements of manufacturing companies involved in joint products and by-products.

-Formulate overhead using predetermined rates and Activity-Based costing. 

-        Asses how cost-volume-profit are related and use CVP analysis as a planning and decision making aid. - Prepare a budget and use budgets for performance evaluation after flexing the budget

-analyzes the variances created by production whenever the actual costs incurred differ from the costs set to be incurred

-analyzes the factors and aspects necessary to come up with an effective cost system

-use  cost accounting as a tool for management in planning, control, and  decision-making

DEPARTMENT

ACCOUNTANCY

COURSE CODE

ACTG. 122

DESCRIPTIVE TITLE

COST ACCOUNTING AND CONTROLLING

PRE-REQUISITE (S)

ACTG. 121 & 123

CREDIT UNIT (S) 

3 UNITS

CONTACT HOURS

PER SESSION:

Lecture:      3 hrs

WEEK

UNIT OUTCOMES (UO)

COURSE CONTENT

1

§  Describe and explain the important role of ____________ in achieving the OLFU’s  vision and mission

§  Outline the objective policies to be observed in the classroom in consonance with the rules and regulations

§  Demonstrate comprehension on the course syllabus of the subject matter.

§  OLFU Mission and Vision

§  Rules and Regulations

§  Course Syllabus

2

·        Describe the nature, purpose, scope and use of modern cost accounting

·        Explain the value chain concept in a business firm and the set of business functions or activities in such chain

·        Relate the importance and use of cost accounting to the value chain

·        Describe the relationship of cost accounting to financial accounting, management accounting and to other fields of study

§  Enumerate and explain the primary applications of cost accounting systems

§  Cost Accounting Fundamentals

3

·        Explain the nature of cost, cost pools, cost objective and cost drivers

§  Identify and explain the various classifications of costs

§  Cost Terms, Concepts and Classifications

4

·        Explain the meaning of cost behaviour

·        State the importance of understanding how costs behave

·        Enumerate and explain the basic cost behaviour patterns

·        Describe the behaviour of variable costs, fixed costs and mixed costs in relation to volume of activity

·        Discuss the methods of establishing the relationship between costs and activity levels

§  Compute the variable cost rate and the fixed costs using the different methods

·        Cost Behavior: Analysis and Use

5

·        Describe the concept and importance of understanding the cost-volume-profit relationship in an enterprise

§  Cost -Volume-Profit Relationship

6

PRELIMINARY EXAMINATION

7

·        Compute and explain the meaning of contribution margin, break-even point, and margin of safety

·        Construct the break-even chart and explain the significance of the break-even point

·        State the assumptions and limitations of CVP Analysis

§  Apply CVP analysis in decision making

§  Cost -Volume-Profit Relationship

8

·        Know the application of cost accounting to the various business sectors

·        Explain the nature of production, marketing and administrative costs

·        Understand the flow of cost and their presentation in the income statement of a

Ø  Mechandising company

Ø  Manufacturing company

·        Service organization

§  Accounting for Cost Flows

9

·        Explain the concept of product costing

·        Enumerate and explain the factors that should be considered in designing the product costing systems

·        Understand the difference between actual, normal and standard costing as bases of cost measurement

§   

§  System Design: Job-order Costing

10

·        Outline the eight (8)-step approach to job costing

·        Understand how the steps in the production  process are tracked in a job-costing system

§   

§  System Design: Job-order Costing

11

·        Apply the accounting procedures using job-order costing in a

Ø  Manufacturing company

Ø  Service company

·        Describe the alternative methods of prorating the end-of-period under-or overapplied overhead

§  System Design: Job-order Costing

12

MIDTERM EXAMINATION

13

·        Explain the concept of process costing system

·        Recognize when process costing system will be used

·        Describe the seven (7) key steps in process costing

·        Explain the significance of equivalent units and how are they computed

§   

§  System Design: Process Costing System: Cost Allocation

14

·        Apply the methods used to prepare the departmental production cost report, namely

Ø  Weighted-average method

Ø  First-in, First-out (FIFO) method

·        Explain the concept of cost allocation

§  Explain and apply the procedures in accounting for joint cost and by-products.

§  System Design: Process Costing System: Cost Allocation

15

·        Explain how hybrid-costing systems develop in relation to production systems

·        Prepare journal entries for an operation-costing system

·        Describe a just-in-time production system

·        Identify the major features of a just-in-time production system

·        Explain how just-in-time systems simplify job costing

·        Prepare journal entries for backflush-costing system

·        Define activity-based costing

·        State the advantages and limitations of activity-based costing

·        Describe the steps in designing an activity-based costing system

·        Enumerate examples of activity centers, cost drivers and traceable costs

·        Discuss activity-based management

§  Describe the opportunity cost concept

·        Operating Costing, Just-in-time System and Backflush Costing

§  Activity-based Costing and Management

16

·        State the nature and rationale of standard costs

·        Discuss the users of standard cost

·        Describe how standards are set

·        Explain the process of setting standard costs for direct material, direct labour and overhead

·         

§  Standard Costs and Operating Performance Measures

17

·        Identify the possible causes of variances and responsibility for them

·        Compute and analyze the variances between actual costs and standard costs

§  Standard Costs and Operating Performance Measures

18

FINAL EXAMINATION

GRADING SYSTEM

The final grade of the student is interpreted as shown on the table below:

ABOVE 98.00

ABOVE

 98.00

95.00 – 97.00

94.00

90.00

88.00

83.00 – 85.00

80.00-82.00

76.00-79.00

75.00

74.00 and below

1.00

1.00

1.25

1.50

1.75

2.0

2.25

2.50

2.75

3.00

5.0

FDA (Failure due to Absences)               UW   (Unauthorized Withdrawal)                            INC (Incomplete)

AW (authorized withdrawal                   NFE (No Final Examination

Lecture 60%:           Prelims (20%)          Midterms (20%)      Finals (25%)             Quizzes    (25%)       Reports/Term Paper – 5%

Attendance (5%)

Laboratory 40%       Quizzes (50%)         Experiments (20%) Performance Grade (20%)     Attendance (10%)