ACCT 211 Cost Accounting
Prince Sultan Private College
Dept. of Finance, Marketing and Accounting /
مؤسسة الرياض الخيرية للعلوم
كلية الأمير سلطان الأهلية
قسم العلوم المالية والتسويق و المحاسبةACCT 211 – Cost Accounting
/ Credit: 3 (3,1,0)Semester Commencement w.e.f. February, 20, 2010
Instructor: Mr. O.V.A.Faizal
Room # A-254Phone # 4948539
E-mail: /
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 20%
Second Major Exam 20%
Final Exam (Comprehensive) 40%
Quizzes 10%
Class Participation & Assignments 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 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:
- 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.
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
WEEK 8 PROCESS COSTING (CONTINUED)
Read Chapter 17
- Five Steps in Process Costing
- Calcualtion of Equivalent Units
- Prepare Journal Entries for Process Costing Systems
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 ACTIVITY-BASED COSTING
Read Chapter 5
- 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
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
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