ACC-205 Cost Accounting
A systematic study of the fundamental procedures applied in the determination of production costs and inventory balances. Analysis of cost behavior and decision-making for planning and control of the business are also covered.
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Course Outline
Course Description
A systematic study of the fundamental procedures applied in the determination of production costs and inventory balances. Analysis of cost behavior and decision-making for planning and control of the business are also covered.
Credit Hours
3Course Learning Outcomes
- Students will be able to identify the difference between a job order cost system and a process cost system.
- Students will be able to determine break-even points and to calculate volume required to meet target profits.
- Students will demonstrate accounting for scrap, waste, spoilage and defective units.
- Students will be able to cost out product and services using an activities based costing system.
- Students will be able to account for joint product costs and by-product costs.
- Student will be able to identify and account for manufacturing costs.
- Students will be able to determine the manufacturing cost for products in a job order cost system.
- Students will be able to determine the manufacturing cost for products ina process cost system.
- Students will be able to prepare budgets and flexible budgets for any business entity.
- Students will be able to distinguish between variable costs fixed costs and mixed costs.
- Students will be able to isolate the fixed and variable cost elements of a mixed cost.
- Students will be able to cost out products and services using a standard cost system.
- Students will be able to identify and explain variances in a standard cost system.
Topic Outline
- The cost accountant's role in the organization
- An introduction to cost terms and purposes
- Accounting for materials, payroll, and factory overhead
- Job-order costing
- Budgeting in general
- Systems designs, responsibility accounting, and motivation
- Flexible budgets and overhead control
- Standard absorption costing: overhead variances
- Income effects of alternative product-costing methods
- Relevant costs and the contribution approach to decisions
- Cost allocation
- Joint product costs and by-product costs
- Spoilage, waste, defective units and scrap
- Activity-based costing
- Cost accounting for a service business
- Cost-volume-profit relationships