HARVARD UNIVERSITY EXTENSION SCHOOL

COST ACCOUNTING
FALL SEMESTER 2011 (DRAFT 8/1/2011)

Instructor: James F. White, MS, CPA, CMA

Office: Assistant Dean for Finance
Massachusetts Institute of Technology
School of Science, Building 6-131
77 Massachusetts Avenue
Cambridge, MA 02139
Phone: 617-253-8902 (office)
617-512-8355 (cellular)
E-mail: jimwhite@mit.edu
Class Hours: Thursday 7:35 – 9:35
Class Location: TBD
Office Hours: TBD
Prerequisite: TBD
Course Website: TBD

Course Objective: This course is an in-depth study of cost accounting focusing on its role in
internal reporting and the resulting decision-making processes. It introduces cost terminology and cost
flows, standard cost systems, relevant costing, budgeting, inventory control, responsibility accounting,
and performance measurement. Students will evaluate the foundation, ethics and basic costing systems
employed in the management accounting profession; analyze budgeting, cost behavior, pricing and
profitability concepts and principles; determine how cost allocations, product quality, and investment
decisions are applied by management accountants; determine how current trends in various industries
impact cost accounting.

Course Format: The format of the course will be based on the assigned readings, questions,
exercises, problems and cases from the textbook. The homework and cases should enhance your
understanding and comprehension of the material in the textbook. In addition, the cases should
provide a link from the classroom to relevant business situations and problems. The midterm exam
and final exam will be based upon the chapter material, exercises and problems discussed during class.

Course Materials:
Fundamentals of Cost Accounting, 3rd Edition, Lanen, Anderson, Maher, 2011 [ISBN-13
9780073527116]

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 HARVARD UNIVERSITY EXTENSION SCHOOL
COST ACCOUNTING
FALL SEMESTER 2011 (DRAFT 8/1/2011)

Examinations: There will be a mid-term and final examination. The midterm and final exams
will be worth 30% and 30%, respectively, towards your final course grade. These exams will occur on
the date indicated on the syllabus, unless otherwise noted.

Grading:
Midterm Examination 30%
Final Examination 30%
Case Assignments 30%
Participation 10%
TOTAL 100%

Case Assignments: Students are expected to review and prepare each case that is listed below.
There will be a required assignment that will be provided one week before the case is to be
discussed. Each assignment should be submitted to the instructor on the appropriate due date. These
assignments will be worth 30% towards your final course grade. The following is a summary of the
case assignments, learning objectives and discussion/due date:

DISCUSSION/
CASE # CASE NAME LEARNING OBJECTIVE DUE DATE
1. Abbington Youth Prepare a cost-volume-profit 9/15/2011
Center analysis of an existing daycare
center;
2. Neighborhood Servings Review an existing cost accounting 10/6/2011
system into an activity-based costing
system;
3. Harlan Foundation Determine the relevant costs for a 11/10/2011
summer camp; determine the budget
price for a seminar;

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 HARVARD UNIVERSITY EXTENSION SCHOOL
COST ACCOUNTING
FALL SEMESTER 2011 (DRAFT 8/1/2011)

Participation: Homework has been assigned for each class but will not be collected or
graded. The completion of the assigned homework will assist you in participating during class
and will better prepare each student for the quiz, exams and group project. The course grade for
participation will be based on the quality, effort and contribution of each student for the entire
semester and is worth 10% towards your final course grade.

Homework: Homework has been assigned for each class but will not be collected or graded.
All solutions to exercises and problems that have been assigned will be posted to the course
website after each class session.

Academic Honesty: The Harvard University Extension School expects students to

understand and maintain high standards of academic honesty. Examples of academic
misconduct include, but are not limited to, the following: plagiarism, cheating and computer
network abuse. All work submitted to meet the course requirements is expected to be the
student’s own work. In the preparation of work submitted to meet course requirements, students
are expected to distinguish their own ideas and language from information derived from other
sources. Without prior written approval by both instructors, students may not submit the same
material for two courses.

Expectations and Assumptions: It is important to your success in this course to

remain current with the readings, homework and case assignments. Please be prepared to review
the assigned readings, cases and homework at the appropriate class session. Homework and
examinations will occur on the date indicated on the syllabus. Late submission of an assignment
or an unexcused absence from an examination will not be accepted.
 HARVARD UNIVERSITY EXTENSION SCHOOL
COST ACCOUNTING
FALL SEMESTER 2011 (DRAFT 8/1/2011)

SESSION DATE TOPIC READINGS ASSIGNMENT

1. 9/1/2011 Cost Accounting: Information Chapter 1 E/P/C: 1-15,1-17,1-18,1-20,
for Decision Making 1-21, 1-22,1-23,1-24;
2. 9/8/12011 Cost Concepts and Behavior Chapter 2 E/P/C: 2-19,2-21,2-22,2-23,
2-25,2-30,2-31,2-33;
3. 9/15/2011 Fundamentals of Cost-Volume- Chapter 3 E/P/C: 3-19,3-21,3-23,3-25,
Profit Analysis 3-26,3-27,3-28,3-30;
Case Assignment 1 DUE
4. 9/22/2011 Fundamentals of Cost Analysis Chapter 4 E/P/C: 4-31,4-33,4-38,4-39,
for Decision Making 4-40,4-43,4-44,4-45;
5. 10/6/2011 Activity-Based Costing Chapter 9 E/P/C: 9-21,9-22,9-23,9-25,
9-27,9-29,9-32,9-34;
Case Assignment 2 DUE
6. 10/13/2011 Job Costing Chapter 7 E/P/C: 7-20,7-21,7-22,7-23,
7-27,7-30,7-31,7-35;
7. 10/20/2011 MIDTERM EXAM MIDTERM EXAM
Ch. 1, 2, 3, 4, 7 & 9
8. 10/27/2011 Fundamentals of Cost Chapter 10
Management
9. 11/3/2011 Fundamentals of Management Chapter 12
Control Systems
10. 11/10/2011 Planning and Budgeting Chapter 13
Case Assignment 3 DUE
11. 11/17/2011 Business Unit Performance Chapter 14
Measurement
11/24/2011 THANKSGIVING NO CLASS SCHEDULED
12. 12/1/2011 Fundamentals of Variance Chapter 16
Analysis
13. 12/8/2011 Nonfinancial and Multiple Chapter 18
Measures of Performance
14. 12/15/2011 FINAL EXAM FINAL EXAM
Ch. 10, 12, 13, 14, 16 & 18

E: exercise from textbook; P: problem from textbook; C: case from textbook