ACTG 66: COST ACCOUNTING
Foothill College Course Outline of Record
|Hours:||5 lecture per week (60 total per quarter)|
|Prerequisite:||ACTG 1C or 1CH, or equivalent experience.|
|Advisory:||Elementary Algebra or equivalent; demonstrated proficiency in English by placement via multiple measures OR through an equivalent placement process OR completion of ESLL 125 & ESLL 249.|
|Degree & Credit Status:||Degree-Applicable Credit Course|
|Grade Type:||Letter Grade (Request for Pass/No Pass)|
Student Learning Outcomes
- Explain cost accounting terminology, principles, and concepts.
- Explain different cost accounting methods and /or procedures.
- Demonstrate the ability to apply the different costing methods and /or procedures to solve cost accounting problems. Examples: Variable Costing , Absorption Costing
The student will be able to:
A. complete cost-volume-profit relationships.
B. prepare cost reports and working papers based on standard costs, direct costs, relevant costs, joint costs, and inventory control and valuation.
C. determine costs using both job-order and process cost methods.
D. understand and use cost accounting terminology.
E. understand and use activity-based costing.
A. Description of the accountant's role in an organization including cost terminology and the major purposes of cost accounting.
1. Explain the uses of cost accounting data.
2. Understand the ethical responsibilities and certification requirements for management accountants.
3. Discuss the relationship of cost accounting to financial and management accountants.
4. Identify the three basic elements of manufacturing costs.
5. Distinguish between the two basic types of cost accounting systems.
6. Illustrate a job order cost system.
B. Technique of computing, cost-volume relationships, including the preparation of graphs, applications of break-even analysis.
1. Compute the break-even point and the target volume needed to earn a certain point.
2. Calculate the contribution margin ratio and the margin of safely margin.
3. Discuss and analyze the impact of income tax on break-even computations.
4. Apply CVP technique that uses the degrees of cost variability to measure the changes in volume on resulting profits.
C. Computation of costs using standard costs analysis of variances, types of standard budgets, profit planning, and cost behavior.
1. Describe the standards used in determining standard costs.
2. Determine procedures for recording standard costs.
3. Compute and analyze variances.
4. Prepare journal entries to record variances.
5. Perform variance analysis.
6. Recognize the features of a standard cost system.
7. Calculate standard costs in a departmentalized factory.
8. Distinguish between actual and applied factory overhead.
9. Compute variances using the two-variance method.
10. Compute variances using the four-variance method.
11. Compute variances using the three-variance method.
D. Training in cost accounting using variable, fixed and semi-variable costs. Preparation of overhead budgets and flexible budgets.
1. Identify cost behavior patterns.
2. Separate semi-variable costs into variable and fixed components.
3. Prepare a budget for factory overhead costs.
4. Account for actual factory overhead costs.
5. Distribute service department factory overhead costs to production departments.
6. Apply factory overhead using predetermined rates.
7. Calculate actual and applied factory overhead.
8. Explain the general principles involved in the budgeting process.
9. Identify and prepare the components of the master budget.
10. Identify and prepare components of the flexible budget.
11. Calculate the procedures to determine standard amounts of factory overhead at different levels of production.
Special Facilities and/or Equipment
Method(s) of Evaluation
Examinations, quizzes, computerized assignments, written reports, group activities, and class presentations.
Method(s) of Instruction
Lecture, Electronic discussions/chat, Excel and homework assignments.
Representative Text(s) and Other Materials
Vanderbeck, Edward J. Principles of Cost Accounting. 16th ed. Cengage Learning, 2013.
Types and/or Examples of Required Reading, Writing, and Outside of Class Assignments
A. Reading of corporate Cost Accounting Policy - Different Samples
B. Written Research Paper - Cost Accounting Policy
C. Reading of internet articles and incorporating the information into the written project
D. Reading on different topics (internet/Business Journals) or accounting-related current events and/or careers
E. Reading Wall Street Journal, Business Week