SYLLABUS

AKU 2201 – COST ACCOUNTING

Prerequisite: AKU 1601 Introduction to Accounting
Credit Hours: 3

Instructor:

Course Description
The course will focus on cost information: the accumulation of product costs especially in
manufacturing organizations, the process of costs assignment, the use of cost information for
planning and control, and profitability analysis in decision-making.

Course Objectives
Upon completion of the course students are expected to be able to:
1. Present the basic concepts of costs, analyses, uses and procedures as a managerial tool for
decision making process.
2. Identify and apply cost behaviour and cost measurement methods for reporting purposes
including: budgeting, product costing (traditional; process & job order costing as well as
Activity Based Costing/ABC).
3. Understand budget and budgeting process, the joint cost & support departments allocation.
4. Identify and present ethics concerns related to managerial/cost accounting as a career.

Course Material
Required:
Horngren, C. T., Datar, S., Foster, G., and Rajan, M. 2011. Cost Accounting: A Managerial
Emphasis, 14th edition, Pearson Education.

Student’s Responsibilities
1. Class meeting will be used by the lecturer to confirm student’s understanding of the
underlying concepts of accounting. Students should read the chapter assigned and are
required to do and submit the individual homework assigned and group assignment before
each class meeting.
2. Students are expected to attend all scheduled class meetings. Absence from class meetings
shall not exceed 25%. Students who exceed the 25% limit without a medical or emergency
excuse acceptable to and approved by the Associate Dean of Academic shall not be allowed
to take the final exam and shall receive a grade of E from this course.
3. Operating mobile phone and other communication devices are strictly prohibited during class
meetings. Any student found operating these devices should leave the class and will be
considered as an absence for the class meeting.
Academic Integrity
Academic integrity forms a fundamental bond of trust between colleagues, peers, lecturers, and
students, and it underlies all genuine learning. There is no tolerance for plagiarism or academic
dishonesty in any form, including, but not limited to, viewing the exams of others, sharing
answers with others, using books or notes while taking the exam, copying answers or papers, or
passing off someone else’s work as one’s own. A breach of ethics or act of dishonesty can result
in A FAILURE OF AN ENTIRE COURSE (a grade of “E”).

Teaching Methods
Learning is the responsibility of students and students are required to read the materials before
class to help them understand the lectures and help create fruitful discussions in the class.
Students are expected to actively participate in every class and interact with each other through
discussions while the role of the instructor is to facilitate the discussions.
Quizzes will be administered throughout the semester. The quizzes might relate to the past
materials as well as the chapters to be discussed on the day of the quiz. Students are required to
prepare a report on a case study assigned from chapters in the textbook on a regular basis.
Attendance is critical and will be taken regularly. Students who miss classes will lose the
opportunity to learn and might find difficulties in catching up with the materials. Further, they
will miss the points for class participation through involvements in class discussions. When
missing a class, it is the responsibility of the students to catch up with the materials and not miss
related assignments.
Students are responsible for printing the syllabus, hand outs, and other class materials and bring
them to class. Important announcements will be posted throughout the semester on the Sistensis
Systems. Students must check out the Sisntesis regularly to learn about the announcements.

Grading
Your grade will be determined based on your total score on the following items:
Mid Exam 30%
Final Exam 30%
Quizzes and assignments 15%
Homework 15%
Project 10%
100%
Your final score will be mapped to a course grade based on the following scheme:
A 90 or above C+ 65 to 69
A- 85 to 89 C 60 to 64
B+ 80 to 84 D 50 to 59
B 75 to 89 E below 50
B- 70 to 74

Course Outline

Week Topic Chapter Homework

1 Review of Syllabus and Introduction: Syllabus -
The Manager and Management and Ch 1
Accounting
- Financial accounting,
management accounting, and
cost accounting
- Strategic decision and the
management accountant
- Value chain and supply chain
analysis and key success factors
- Decision making, planning, and
control: the five-step decision-
making process
- Key management accounting
guidelines
- Organization structure and the
management accountant
- Professional ethics
2 Cost Term and Purposes Ch 2 (please provide)
- Costs and cost terminology
- Direct costs and indirect costs
- Cost-behavior patterns: variable
costs and fixed costs
- Total costs and unit costs
- Business sectors, types of
inventory, inventoriable costs,
and period costs
- Illustrating the flow of
inventoriable costs and period
costs
- Measuring costs requires
judgment
- A framework for cost
accounting and cost
management
3 Cost Behavior Ch 10 (please provide)
 - Basic assumptions and
examples of cost functions
- Identifying cost drivers
- Cost estimation methods
- Step in estimating cost function
using quantitative analysis
- Evaluating cost drivers of the
estimated cost function
- Nonlinear cost function
- Data collection and adjustment
issues
4 Job Order Costing Ch 4 (please provide)
- Building-block concepts of
costing systems
- Job-costing and process costing
systems
- Normal Costing
- Actual Costing
- A normal Job-Costing System
in Manufacturing
- Budgeted Indirect Costs and
End-of-Accounting- Year
adjustment
- Variations from normal
Costing: A Service-Sector
example
5 Process Costing (1) Ch 17 (please provide)
- Illustrating Process Costing
- Case 1: Process Costing with no
Beginning or Ending work-in-
process inventory
- Case 2: Process Costing with
Zero Beginning and Some
Ending Work-in-Process
Inventory
6 Process Costing (2) Ch 17 (please provide)
- Case 3: Process Costing with
Some Beginning and Some
Ending Work-in-Process
Inventory
- Transferred-In Costs in Process
Costing
- Hybrid Costing Systems
7 Spoilage, Rework, and Scrap Ch 18 (please provide)
- Defining Spoilage, Rework and
Scrap
 - Two Types of Spoilage
- Spoilage in Process Costing
Using Weighted-Average and
FIFO
- Inspection Points and
Allocating Costs of Normal
Spoilage
- Job Costing and Spoilage
- Job Costing and Rework
- Accounting for Scrap
MID EXAM
8 Cost Allocation: Joint Products and Ch 16 (please provide)
Byproducts
- Joint-Cost Basics
- Allocating Joint Costs
- Approaches to Allocating Joint
Costs
- Choosing an Allocation Method
- Irrelevance of Joint Costs for
Decision Making
- Accounting for Byproducts
9 Allocation of Support-Department Ch 15 (please provide)
Costs, Common Costs, and Revenues
- Allocating Support Department
Costs Using the Single-Rate
and Dual-Rate Methods
- Budgeted Versus Actual Costs,
and the Choice of Allocation
Base
- Allocating Costs of Multiple
Support Departments
- Allocating Common Costs
- Cost Allocations and Contract
Disputes
- Bundled Products and Revenue
Allocation Methods
10 Flexible Budgets, Direct-Cost Ch 7 (please provide)
Variances and Management Control
- Static Budgets and Variances
- Flexible Budgets
- Flexible-Budget Variances and
Sales-Volume Variances
- Price Variances and Efficiency
Variances for Direct-Cost
Inputs
- Implementing Standard Costing
 - Management Uses of Variances
Benchmarking and Variance
Analysis
11 Flexible Budgets, Overhead Cost, Ch 8 (please provide)
Variances, and Management Control
- Planning of Variable and Fixed
Overhead Costs
- Standard Costing at Webb
Company
- Variable Overhead Cost
Variances
- Fixed Overhead Cost Variances
- Integrated Analysis of
Overhead Cost Variances
- Production-Volume Variance
and Sales-Volume Variance
- Variance Analysis and Activity-
Based Costing
- Overhead Variances in
Nonmanufacturing Settings
12 Inventory Costing and Capacity Ch 9 (please provide)
Analysis
- Variable and Absorption
Costing
- Variable vs. Absorption
Costing: Operating Income and
Income Statements
- Absorption Costing and
Performance Measurement
- Comparing Inventory Costing
Methods
- Denominator-Level Capacity
Concepts and Fixed-Cost
Capacity Analysis
- Choosing a Capacity Level
- Planning and Control of
Capacity Costs
13 Activity-Based Costing and Activity- Ch 5 (please provide)
Based Management
- Broad Averaging and Its
Consequences
- Simple Costing System at
Plastim Corporation
- Refining a Costing System
- Activity-Based Costing
Systems
 - Implementing Activity-Based
Costing
- Using ABC Systems for
Improving Cost Management
and Profitability
- Activity-Based Costing and
Department Costing Systems
- ABC in Service and
Merchandising Companies
14 Comprehensive case
FINAL EXAM