Syllabus in Cost Acctg

27
Model Course Syllabus

Cost Accounting and Cost Management
Course Number:
Acctg. 6 (May be modified by school)
Credit:
Six (6) units
Prerequisite:
Accounting 5 (Financial Accounting Theory and Practice, Part III) and Management 3 (Production and Operations Management)
Course Description
This course is designed to orient the students to the cost accounting and cost management framework of business. Topics discussed are: overview of cost accounting; manufacturing cost accounting
cycle; job and process cost systems; accounting, planning, and control for materials, labor, and factory overhead; accounting for joint and by-product costs; and cost management systems (CMS) for
the new manufacturing environment such as activity-based costing, target costing, total quality management, value reengineering, and theory of constraints.
Required Textbook:
To be filled up by the school
Optional Resource:
Journal of Cost Management, Journal of Cost Management for the Manufacturing Industry
Objectives of the Course:

At the end of this course, students are expected to:
Cognitive
1.
2.
3.
4.
Have a clear understanding of the concepts of cost, accounting information system and how it relates to other operating and information systems, and the cost accounting cycle.
Have acquired a thorough knowledge about production costing, i. e. job order and process, including the preparation of a job cost sheet, cost of goods manufactured and sold and cost of
production reports, respectively.
Have acquired adequate knowledge about joint production process from a cost accounting perspective, joint cost allocation methods and accounting for by-products
Have equipped themselves with a clear understanding and knowledge about standard costing analysis and investigation of variances, and how standard cost is used as planning and decisionmaking tool.
Psychomotor:
1. Have applied the skills and knowledge acquired in solving exercises, problems, and case problems systematically.
2. Have used and operated accounting equipment, e. g. calculator and/or computer as appropriate.
Affective:
1. Have developed fairness in providing cost information for use by both management and the public.
2. Have cultivated integrity, accuracy, timeliness, and neatness in the preparation and submission of financial and management reports.
Course Outline:
28
Topic
I.
COST CONCEPTS
1. Definition, scope,
objectives of cost
accounting
2. Relationships of cost
accounting to financial
and management
accounting
3. Nature, classification and
purposes of cost
4. Elements of product cost,
cost flow in service, trading
& manufacturing
businesses
No.
of
Hrs.
5
Learner
Outcomes
Differentiate financial,
management and cost
accounting
Define cost terms as
classified
Compare cost flow in
service, trading and
manufacturing firms
Compare/distinguish
income statement of service,
trading and manufacturing
firms.
Mention/explain new
account titles in materials, labor
and overhead
Strategy/Methodology Activities
Strategy/methodology
Discussion
Recitation
OHP presentation
Assignments
Group/Team learning
Activities
Summary exercises
Problem solving
Submission of income statements
of service, trading and
manufacturing businesses
Values
Critical analysis
Accountability
Responsibility
Fair presentation
29
Topic
II. COST DETERMINATION
a. Journal entries for
manufacturing operations
b. Acquisition & usage of
materials
c. Labor cost incurrence and
distribution
d. Incurrence of overhead
Items of overhead
classified into fixed
and variable, methods
of separating fixed
from variable in a
mixed cost
Actual vs. applied
overhead (using
different overhead
rates)
Over- or under-applied
overhead recognition
and disposition
e. Preparation of cost
statements (service,
trading and manufacturing
operations), income
statement and balance
sheet
No.
of
Hrs.
6
Learner
Outcomes
Differentiate direct from

indirect in materials and labor
accounting
Journalize acquisition and
issuance of materials using
FIFO, Average, LIFO;
Journalize regular and
emergency purchases,
including returns to suppliers &
to stores
Journalize regular payroll
showing how overtime
premium is recorded
Differentiate and give
examples of fixed and variable
overhead and separating these
elements in a mixed cost
Journalize actual and applied
overhead based on methods of
computing overhead rates
Prepare cost statements for
service, trading and
manufacturing firms including
income statement and balance
sheet.
Values
Strategy/Methodology
Lecture
OHP presentation
Discussion
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Analyzing short cases
Accuracy
Timeliness
Accuracy
Fair presentation
Compliance with labor
laws, SSS, Philihealth,
Pag-ibig rules
Conformance to company
policies
30
Topic
III. MATERIALS COSTING AND
CONTROL
1. Costing based on physical
flow
a. FIFO
b. Average
c. LIFO
2. Traditional control
procedures
a. Order cycling
b. Min-max
c. Two-bin
d. Automatic order
e. ABC plan
3. Alternative inventory
management systems
a.
Economic Order
Quantity (TQM)
b.
Total Quality
Management
c.
Just In Time (JIT)
(backflush costing)
4. Accounting and control of
scrap, defective and
spoiled materials and
goods
5. Cost reduction techniques
a.
Work study
b.
Time and motion
study
c.
Value analysis
No.
of
Hrs.
8
Learner
Outcomes
Describe and apply to short

cases FIFO, average, and
LIFO
Describe and give the
advantages of traditional
control procedures
Describe and cite the
advantages of traditional
control procedures
Define ordering cost, carrying
cost, economic order quantity,
just-in-time, backflush costing
and total quality management
Explain the cost reduction
techniques and discuss how
they are used
Journalize scrap, defective,
spoiled materials and goods
Journalize transactions using
backflush costing
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Values
Accuracy
Timeliness
Accountability
Fair presentation
Compliance with company
policies and standards
31
Topic
IV. LABOR
COSTING
CONTROL
AND
No.
of
Hrs.
5
Documents and their flow

in labor costing and control
2. Payroll preparation and
distribution
3. Labor-related costs
Learner
Outcomes
Define and trace the flow
Journalize weekly, biweekly and monthly payroll
sheets and distribution
Compute and journalize
payments on labor and laborrelated costs
Lecture-discussion
Recitation
Group/Team learning
Compute overhead rates

using various bases in applying
overhead to production
Compare plant wide and

departmental overhead rates
Apply the three methods

of separating variable from
fixed overhead
Apply and journalize the

methods of allocating service
department costs
Lecture
Discussion
Recitation
Group/Team learning
1.
V. OVERHEAD COSTING AND

CONTROL
1. Selection of activity base/
level
2. Plant-wide vs. multiple
overhead rates
3. Separating variable from
fixed in mixed costs
a.
High-low
b.
Scattergraph
c.
Least squares
d.
Variable rate and
fixed overhead rate
4. Allocation of service
department cost
a.
Direct
b.
Stepwise
c.
Algebraic
10
Activities
Summary exercises
Problem solving
Activities
Summary exercises
Problem solving
Practice set is started with
guidance of instructor
Values
Accuracy
Timeliness
Responsibility
Accountability
Compliance with labor
laws, rules, company
Critical analysis
Fair judgment
Accountability
Responsibility
Compliance with company
32
Topic
VI. COSTING METHODS A) JOB ORDER
1.
Nature, definition and
characteristics
2.
Cost flow of materials,
labor and overhead
a. flow of documents
b. journal entries
c. posting to job order
cost sheets
3.
Accounting for jobs
completed and sold
No.
of
Hrs.
10
Learner
Outcomes
Define and describe a job

order cost system
Distinguish and trace the
documents used in materials,
labor and overhead cost
incurrence
Journalize typical
transactions using job order
cost system
Prepare the cost of goods
manufactured and sold
statement
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Values
Accuracy
Accountability
Timeliness
Fair presentation
Responsibility
33
Topic
VII. COSTING METHODS - B)
PROCESS COST SYSTEM
1.
2.
3.
4.
5.
6.
7.
Definition, nature and

characteristics of the
Process Cost System
Equivalent units of
production
a.
Average
b.
FIFO
Cost of production report
a.
Single and
multi-department
b.
Even and
uneven application of
cost
Lost units
a.
Normal
b.
Abnormal
Accretion in units in a
subsequent department
(adjusting unit cost prior
process)
Journal entries for the flow
of costs
Preparation of cost of
goods manufactured and
sold statement
No.
of
Hrs.
15
Learner
Outcomes
Define and cite the

characteristics of the process
cost system
Compare job order and
process cost systems
Define and compute for
equivalent units of production
average and FIFO
Prepare cost of production
report even and uneven
application of cost, first and
then subsequent process,
with and without loss units
both normal and abnormal
Prepare cost of production
report with accretion in units
Journalize typical
transactions and prepare
statement of cost of goods
sold
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Submission of typical cost
reports
Values
Accuracy
Accountability
Timeliness
Fair presentation
Responsibility
34
Topic
VII. JOINT AND BY-PRODUCT
COSTING
1. Definition and
characteristics of joint- and
by-products
2. Methods of allocating joint
costs to joint products
3. Management decisions
regarding joint process
4.
Accounting for byproducts and scrap
5.
Journal entries for
costs flow and preparation
of cost of goods
manufactured and sold
and income statements
No.
of
Hrs.
Learner
Outcomes
Define and give examples of

joint process, joint products
and by-products
Illustrate/explain the methods
of accounting for by-products
Compute unit cost using
various methods of allocating
joint cost
Determine profit from each of
joint products and byproducts
Journalize cost flow for joint
and by-products and
prepare income statement
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Submission of typical cost
reports
Values
Consistency
Timeliness
Responsibility
Accountability
Fair judgment
35
Topic
VIII. Standard Costing
1.
2.
3.
4.
5.
Definition and
objectives of standard
costing
Uses and limitations of
standard costing
Determination and
setting up of standards
Variance analysis
a.
Materials
(including mix and
yield)
b.
Labor
(including mix and
yield)
c.
Overhead
(including four
variance method)
Journal entries and
preparation of cost of
goods manufactured and
sold for typical firms using
standard cost and how
variances are recorded
and disposed of.
No.
of
Hrs.
15
Learner
Outcomes
Name and define the

types of standards and uses
of standards
Compute variances for
materials, labor and
overhead (start with two
variances)
Identify the relevance,
strengths and weaknesses of
standard costing and
variances analysis for
performance and control of
operations
Journalize transactions under
standard costing under two
methods work-in-process
debited at actual and credited
at standard and work-in
process debited and credited
at standard cost
Prepare statement of cost of
goods manufactured and sold
showing disposition of
variances
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Values
Accuracy
Timeliness
Responsibility
Accountability
Fair judgment
Compliance with
company policies
36
Topic
IX. COST MANAGEMENT
1. Activity based costing
2. Target costing
a. Conceptual foundation
b. Use of target costing
facilitating strategic
management
c. Steps in implementing
target costing
approach
3. Total quality management
4. Value reengineering
b. Types of value
engineering
Functional analysis
Design analysis
5. Theory of constraints
of the theory of
constraints
b. Application of the
theory of constraints to
facilitate strategic
management
c. Steps in the theory of
constraints analysis.
6. Life-cycle costing
of life-cycle costing
b. Using life-cycle costing
to facilitate strategic
management
c. Pricing using the costlife cycle
Full manufacturing
cost plus markup
Life-cycle cost plus
markup
Full manufacturing
No.
of
Hrs.
Learner
Outcomes
Define the terms used

Compare the system with
traditional costing, giving
advantages and unit cost
computation under each
system
Describe employee
involvement and total quality
control programs in the new
business environment
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Activities
Summary exercises
Problem solving
Values
Responsibility
Accountability
Timeliness
Fair judgment
Compliance with
company policies
37
Topic
No.
of
Hrs.
X. ENVIRONMENTAL COST
MANAGEMENT
Learner
Outcomes
1. Business process-oriented
environmental
management and
controlling systems
2. Integrated managerial
environmental information
system for supporting
environmental
management, controlling
and auditing
3. Integration of quality and
environmental
management, controlling
and auditing.
4. Environmental investment
management
5. Environmental reporting
6. Environmental ratio
systems
7. Managerial evaluation of
instruments of
environmental policy
Total class hours (including weekly
quizzes)
Define environmental cost

management
Calculate environmental
costs within the framework of
environmental cost
accounting
Activities
Summary exercises
Problem solving
100
SUMMARY:
Total class hours (including weekly quizzes)
Formal examinations (mid-term, finals)
Departmental examinations
Total
Basis for Course Grade:
Lecture
Discussion
OHP presentation
Recitation
Group/Team learning
Values
100
6
2
108
Responsibility
Accountability
Timeliness
Fair judgment
Care for the
environment
38
To be filled up by the school
Other Policies
1. Examinations and Quizzes
Institutional (Regular, e.g. mid-term, finals, etc.)

Departmental
Quizzes - Quizzes will be given regularly and may be unannounced.
2. Other Course Requirements:
Homework Policy - To be filled up by the school

Written Analysis of Cases To be filled up by the school
The students responsibility is to come to each class prepared. He/she is also expected to take all examinations on the dates scheduled. He/she should read the assigned materials and solve assigned
problem materials prior to class. He/she is expected to attend each class and participate actively in the discussions.
4. Academic Dishonesty
All accountancy students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behavior will not be tolerated. Any student found guilty of cheating in
examinations or plagiarism in submitted course requirements will (at a minimum) receive an F (or 5.0) or failure in the course. Plagiarism and cheating refer to the use of unauthorized books, notes
or otherwise securing help in a test; copying tests, assignments, reports or term papers; representing the work of another person as one's own; collaborating, without authority, with another student
during an examination or in preparing academic work; signing another students name on an attendance sheet; or otherwise practicing scholastic dishonesty.
39

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27

Model Course Syllabus

Acctg. 6 (May be modified by school)

Six (6) units

To be filled up by the school

Objectives of the Course:

Differentiate direct from

Describe and apply to short

Documents and their flow

Compute overhead rates

Compare plant wide and

Apply the three methods

Apply and journalize the

V. OVERHEAD COSTING AND

Define and describe a job

Definition, nature and

Define and cite the

Define and give examples of

Name and define the

Define the terms used

Define environmental cost

Basis for Course Grade:

Institutional (Regular, e.g. mid-term, finals, etc.)

2. Other Course Requirements:

Homework Policy - To be filled up by the school

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