Bsa 14c Cost Acctg Syllabus 2019-20 II Lanen
Bsa 14c Cost Acctg Syllabus 2019-20 II Lanen
Bsa 14c Cost Acctg Syllabus 2019-20 II Lanen
DUMAGUETE CITY
BSA 14C
(Cost Accounting and Control)
2nd Semester, SY 2019-2020
ASST. PROF. BETTY JANE Y. MARTINEZ, CPA, MBA, CFMP Date: _______________
Reviewed by:
Approved by:
COURSE DESCRIPTION
This course covers cost accounting theory and practice. Among the major topics included, for service
entities but more generally for manufacturing companies, are: concepts and objectives; cost and information
systems; accumulation procedures for job order and process costing methods; quality costs; by-products and
joint products; planning and control of materials, labor, and factory overhead costs; just in time and backflush
costing; nonfinancial performance measures; activity-based costing and management; budgeting and
standard costs, including variances; analysis of costs and profits; and evaluations of capital expenditures,
among others.
OBJECTIVES
To provide students with the fundamentals of cost accounting, the usage of accounting information
in planning and controlling business systems and in supporting a variety of management decisions, including
strategic decisions that position the firm to compete better in the current globalized economy, within the
bounds of ethical practices.
6. Determine the various budgets involved in the master budget plan, including operational, financial
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and capital expenditures.
7. Calculate variances.
C. Affective
1. Conform with modern manufacturing practices.
TEXTBOOK
Fundamentals of Cost Accounting, 5th edition, International Edition 2017. William N. Lanen,
Shannon W. Anderson, and Michael W. Maher, 2017. McGraw-Hill Education, New York, USA
REFERENCES
THE HOLY BIBLE
Cost Accounting, 2nd ed., Raiborn, Cecily A. and Kinney, Michael R., 2016. 7th Philippine Reprint,
Cengage Learning Asia Pte Ltd., Singapore
Principles of Cost Accounting, 17th ed. 2016. Vanderbeck, Edward J. and Maria R. Mitchell. Cengage
Learning, Boston, MA, USA.
Managerial Accounting, 6th edition, 2017. Maryanne M. Mowen, Don R. Hansen and Dan L. Heitger.
Cengage Learning Asia Pte Ltd, Singapore
Accountants’ Journal, Strategic Finance, Newsweek, and The Times – for benchmark practices of
businesses and business professionals
METHODOLOGY
Lecture, discussion, reports, problem solving,
GRADING SYSTEM
Midterm grade
Average of chapter exams, quizzes & assignments until midterm 50.00%
Midterm exam (chapters until midterm week) 50.00
Total 100.00%
Final grade
Average of chapter exams, quizzes & assignments after midterm 33 1/3 %
Midterm grade 33 1/3 %
Final exam (all chapters) 33 1/3 %
Total 100.00%
NOTE 1: the total of all quizzes & assignments is considered 1 chapter exam.
NOTE 2: the passing grade for accountancy students in all accountancy subjects is 2.0, which is equivalent to
67% of the highest possible score (in all requirements). A student is allowed to repeat the subject
only once if the resulting grade is below 2.0.
COURSE SUMMARY
CONTENTS TOPICS COVERED HOURS
Orientation and course introduction 1.5
1. Cost Accounting: Information for Decision Making 4
2. Cost Concepts and Behavior 6
3. Fundamentals of Cost-Volume-Profit Analysis 6
4. Fundamentals of Cost Analysis for Decision Making 6
5. Cost Estimation 6
6. Fundamentals of Product and Service Costing 6
7. Job Costing 6
8. Process Costing 6
9. Activity-Based Costing 6
3
4
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DETAILED COURSE OUTLINE
5
Legal Issues Relating to Costs and Sales Understand how to apply differential analysis and to use different Chapter exam will
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Application of concepts
Prices approaches to pricing decisions. be given after
Use of Differential Analysis for Solve all exercises & present Exercises chapter 6
Production Decisions 42, 51 and discussion
The Theory of Constraints Understand the theory of constraints. Problems 53, 54, 57, 59, 61, 63,
6 Chapter 5. Cost Estimation
Basic Cost Behavior Patterns Estimate costs using various cost estimation methods Lecture/PowerPoint presentation Quiz
Methods used to Estimate Cost Interpret the results of regression output and identify potential problems Chapter exam will
Behavior Perform regression analysis Application of concepts be given after
Understand the mathematical relationship describing the learning Solve all exercises and chapter 6
Learning Phenomenon
phenomenon. Problems 53, 61, 63 discussion
6 Chapter 6. Fundamentals of Product and Service Costing
Cost Management Systems Explain the fundamental themes underlying the design of cost systems. Lecture/PowerPoint presentation Quiz
Costing in a Single Product, Continuous Explain how a basic product costing system works, and how overhead cost
Process Industry is allocated. Application of concepts
Costing in a Multiple Product, Discrete Chapters 4, 5 and 6
Explain the operation of a two-stage allocation system for product costing.
Process Industry exam
Solve all exercises and
Multiple Allocation Bases and Two- Describe the three basic types of product costing systems-job order,
Problems 50, 52, 53
Stage Systems process and operations.
6 Chapter 7. Job Costing
What is a Job? Explain a job, a job shop and a project. Lecture/PowerPoint presentation Quiz
Computing the Cost of a Job Assign costs in the job cost system, including overhead. Application of concepts Chapter exam will
Ethical Issues and Job Costing Understand the ethical issues in job costing be given after
Solve all exercises and
chapter 8
Managing Projects Problems 44, 45, 50, 51
discussion
6 Chapter 8. Process Costing
Determining Equivalent Units Explain the concept and purpose of equivalent units. Lecture/PowerPoint presentation Quiz
Using Product Costing in a Process Assign costs to products using the five-step process with weighted-
Industry (Weighted Average Process average (WA) and first-in, first-out (FIFO) costing methods.
Costing) Application of concepts
Chapters 7 & 8
The Production Cost Report Prepare and analyze a production cost report.
exam
Assigning Costs Using FIFO Process Compare and contrast operation costing with job costing and process Solve all exercises and
Costing costing. Problems 48, 49, 51, 52, 59
Computing Product Costs
Operation Costing
6 Chapter 9. Activity-Based Costing
6
Reported Product Costs and Decision Understand the potential effects of using reported product costs for Quiz
Lecture/PowerPoint presentation
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Making decision-making.
Two-Stage Cost Allocation Explain how a two-stage product costing system works, Application of concepts Chapter exam will
Activity-Based Costing and Illustration
Compare and contrast plantwide and department allocation methods. be given after
Solve all exercises & present Exercises
Compute product costs using activity-based costing (ABC); and compare chapter 10
Cost Hierarchies 32, 37, 42, 46
the results with traditional department costing methods. discussion
Problems 49, 51, 60
Demonstrate the flow of costs using ABC and its application to
Time-Driven Activity-Based Costing
administrative costs.
6 Chapter 10. Fundamentals of Cost Management
Using Activity-Based Cost Describe how activity-based cost management can be used to improve
Lecture/PowerPoint presentation Quiz
Management to Add Value operations.
Managing the Cost of Customers and
Use the hierarchy of cost to manage costs.
Suppliers Application of concepts
Chapters 9 & 10
Describe how the actions of customers and suppliers affect a firm’s costs
Managing the Cost of Capacity Solve all exercises and exam
and use ABC methods to assess such costs.
Problems 55, 56, 57, 59, 60, 61, 65
Managing the Cost of Quality Manage capacity and quality costs
2 MIDTERM EXAM CHAPTERS 1-10
6 Chapter 11. Service Department and Joint Costs Allocation
Service Department Cost Allocation
Explain why service costs are allocated Lecture/PowerPoint presentation Quiz
and Methods Used
Allocate service department costs using the direct, step and reciprocal
Allocation of Joint Costs and Methods Chapter exam will
methods. Explain why joint costs are allocated. Allocate joint costs using Application of concepts
Used be given after
the net realizable and physical quantities methods.
chapter 12
Deciding Whether to Sell Goods Now Solve all exercises & present Exercise
Explain how cost data are used in the sell-or-process-further decision. discussion
or Process Them Further 45
Problems 49, 58, 61, 62, 67
Deciding What to Do with By-Products Account for by-products.
4 Chapter 12 - Fundamentals of Management Control Systems
Why a Management Control System
Explain the role and basic framework of a management control system, Lecture/PowerPoint presentation Quiz
(MCS)?
Decentralized Organizations Identify the advantages and disadvantages of decentralization. Application of concepts
Framework for Evaluating MCS Chapters 11 & 12
Explain the relationship between organization structure and responsibility exam
Responsibility Accounting Solve all exercises and
centers.
Problems 43, 45
Understand how managers evaluate performance and the use of
Performance Evaluation Systems
performance evaluation systems.
7
Internal Controls to Protect Assets and
Understand how internal controls can help protect assets.
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Provide Quality Information
6 Chapter 13 - Planning and Budgeting
Overall Plan Understand the role of budgets in overall organization plans. Lecture/PowerPoint presentation Quiz
Human Element in Budgeting Understand the importance of people in the budgeting process. Application of concepts
Developing the Master Budget
Estimate sales, production, costs, cash flows and develop budgeted Chapter 13 exam
Budgeting in Retail and Wholesale Solve all exercises and
financial statements.
Organizations; Service Organizations Problems 45 and 61 (Chapter 8, Cost
Ethical Problems in Budgeting Explain why ethical issues arise in budgeting Accounting, Raiborn & Kinney).
Budgeting under Uncertainty Explain how to use sensitivity analysis to budget under uncertainty
6 Chapter 14. Business Unit Performance Measurement
Divisional Performance Measurement Evaluate divisional accounting income as a performance measure. Lecture/PowerPoint presentation Quiz
Accounting Income Interpret and use return on investment, residual income and economic Application of concepts Chapter exam will
Return on Investment value added. be given after
Residual Income Measures Solve all exercises and chapter 15
Economic Value Added Problems 40, 41, 42, 43, 44, 45, 46 discussion
5 Chapter 15. Transfer Pricing
What is Transfer Pricing and its
Explain the basic issues associated with transfer pricing Lecture/PowerPoint presentation Quiz
Importance?
Determining the Optimal Transfer Explain the general transfer pricing rules and understand the underling
Application of concepts Chapters 14 & 15
Price basis for them.
exam
Top-Management Intervention in Identify the behavioral issues and incentive effects of negotiated, cost-
Transfer Pricing based and market-based transfer prices. Solve all exercises and
Negotiating the Transfer Price Explain the economic consequences of multinational transfer prices. Problems 34, 35, 38, 42, 44
Multinational Transfer Pricing Describe the role of transfer prices in segment reporting.
Segment Reporting
5.5 Chapter 16. Fundamentals of Variance Analysis
Using Budgets for Performance
Use budgets for performance evaluation. Lecture/PowerPoint presentation Quiz
Evaluation
Profit Variance Application of concepts
Flexible Budgeting Develop and use flexible budgets. Chapter exam will
Solve all exercises & present Exercise
Performance Measurement and Compute and interpret the sales activity, profit variance, variable cost and be given after
43
Control in a Cost Center fixed cost variances. chapter 18
Problems 46, 50, 51, 52, 64
discussion
Variable Cost and Fixed Cost Variances Understand how to record costs in a standard costing system.
8
5 Chapter 17. Additional Topics in Variance Analysis
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Profit Variance Analysis Explain how to prorate variances to inventories and cost of goods sold. Lecture/PowerPoint presentation Quiz
Market Share Variance and Industry
Use market share variances to evaluate marketing performance. Application of concepts Chapter exam will
Volume Variance
be given after
Sales Activity Variances
chapter 18
Evaluate production performance using production mix and yield Solve all exercises and Problems 42,
Production Mix and Yield Variances discussion
variances. 43, 44, 45, 46
Variance Analysis in Apply the variance analysis to nonmanufacturing costs.
Nonmanufacturing Settings Determine which variances to investigate
4 Chapter 18 Performance Measurement to Support Business Strategy
Explain why management accountants should know the business strategy
Strategy and Performance Lecture/PowerPoint presentation Quiz
of their organization.
Foundation of a Successful Business
Application of concepts
Strategy
Understand why companies use nonfinancial performance measures and Chapters 16, 17 &
Business Model
the different performance measures across organization levels. 1& exam
Multiple Measures or a Single
Solve all exercises and present
Measure of Performance
Exercise 37. 39
Performance Measurement for Understand the balanced scorecard method and how benchmarking can
Problems 42, 53
Control be used to support continuous improvement.
Nonfinancial Performance Measures
Explain why employee involvement is important in an effective
Employee Involvement
performance measurement system
2 FINAL EXAM CHAPTERS 1-18
108 TOTAL HRS.
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COURSE OUTLINE NO. OF HOURS
PART 1. OVERVIEW
Chapter 1. Cost Accounting: Information for Decision Making … … … … … ... … … … … … … ... … … ... 4
Learning objectives
After studying this chapter, the student will be able to:
1. Describe the way managers use accounting information to create value in organizations
2. Distinguish between the uses and users of cost accounting and financial accounting information.
3. Explain how cost accounting information is used for decision making and performance evaluation.
4. Identify current trends in cost accounting.
5. Understand ethical issues faced by accountants and ways to deal with ethical problems faced in
future careers.
Topics
Value Creation in Organization
Accounting Systems and Cost Accounting Systems
Cost Data for Managerial Decisions
Trends in Cost Accounting throughout the Value Chain
Ethical issues for Accountants
Assignment: Discuss Problem 50
Evaluation: Quiz, chapter exam will be given after chapter 3 discussion
Topics
Differential Analysis
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4. Compare and contrast operation costing with job costing and process costing.
Topics
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Chapter 11. Service Department and Joint Costs Allocation … … … … … ... … … … … .… … … ... … … … …. 6
Learning objectives
After studying this chapter, the student will be able to:
1. Explain why service costs are allocated
2. Allocate service department costs using the direct, step and reciprocal methods.
3. Explain why joint costs are allocated.
4. Allocate joint costs using the net realizable and physical quantities methods.
5. Explain how cost data are used in the sell-or-process-further decision.
6. Account for by-products.
Topics
Service Department Cost Allocation and Methods Used
Allocation of Joint Costs and Methods Used
Deciding Whether to Sell Goods Now or Process Them Further
Deciding What to Do with By-Products
Assignment: Solve all exercises and present Exercise 45, Problems 49, 58, 61, 62, 67
Evaluation: Quiz, chapter exam will be given after chapter 12 discussion
12
Learning objectives
After studying this chapter, the student will be able to:
1. Explain the role and basic framework of a management control system,
2. Identify the advantages and disadvantages of decentralization.
3. Explain the relationship between organization structure and responsibility centers.
4. Understand how managers evaluate performance and the use of performance evaluation systems.
5. Understand how internal controls can help protect assets.
Topics
Why a Management Control System (MCS)?
Decentralized Organizations
Framework for Evaluating MCS
Responsibility Accounting
Performance Evaluation Systems
Internal Controls to Protect Assets and Provide Quality Information
Assignment: Solve all exercises and Problems 43, 45
Evaluation: Quiz, chapters 11 & 12 exam
Assignment: Solve all exercises and present Exercises 37, 39 and problem 42, 54
Evaluation: Quiz, Chapters 17 & 1& exam
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