Course Objective:

The course is based on the fact that accounting information should be useful in planning and controlling the company’s business systems, hence the need for clear (thorough) understanding of the process of gathering information (cost accumulation) under different costing systems, necessary for effective and efficient business operations.

The aim is to help the student to learn to look at the business system first and then design an accounting system that can collect and generate the kind of information that is needed.


Course Procedures And Requirements

1.      Each session to begin with a devotion and prayer.

2.      All students are encouraged to participate during devotion eg by giving testimonies or short sermons that will encourage other students.

3.      As stewards of time students are expected to be punctual in all classes and are expected to submit their assignments as they fall due.

4.      Effort and involvement are as essential for learning as they are for success in your career. To help assure your success, participation in all activities of this course is expected. Your program will identify any specific requirements applicable to this class and delivery method.

5.      Each student is encouraged to participate in the class activities meaningfully.

6.      Students are encouraged to work in small groups, but should refrain from duplicating or photocopying other student’s work.  All assignments must reflect each student’s work and ingenuity. Academic dishonesty is considered to be an extremely serious academic offence.



Course Content


1          Introduction to Cost Accounting.


            1.1 The Scope of Cost Accounting

1.2 Cost Classification

1.3 Cost Behavior and Estimation


2          Costing Approaches


2.1 Direct/Variable Costing

2.2 Absorption/Full Costing

2.3 Activity-Based Costing


3          Accounting for the Elements of Costs


3.1 Materials

  • Procurement Procedures and the Custody of
  • Pricing Of Material Issues (FIFO; LIFO; WAC. etc.)
  • The Principle and Application of Economic Order Quantity (EOQ)
  • Material Control Accounts


3.2 Labor

  • Remunerating Labor
  • Labor and Productivity
  • Labor Control Accounts


3.3 Overhead (OH)

  • Allocation and Apportionment
  • Overhead Absorption
  • Calculating Overhead Rates Using Various Bases
  • Application of Overhead Rates
  • Pre-Determined Overhead Rates
  • Under/Over Application Of Overhead
  • Methods of Accounting For Inter-Unit Services
  • Criticism of Traditional Approaches to Overhead Absorption
  • Overheads Control Accounts


4          Costing Systems


4.1 Job and Batch Costing

4.2 Contract Costing

4.3 Process Costing

4.4 Joint Product and By- Product Costing


5          Budgeting and Standard Costing


5.1 Nature and Purpose of Budgeting

5.2 Functional Budgeting

5.3 Flexible Budgets and Standard Costing

5.4 Basic Variance Analysis, Under Absorption and Marginal Costing


6          Short-Term Decision-Making Techniques


6.1 Cost -Volume Profit Analysis

6.2 Relevant Costing

6.3 Limiting Factor

6.4 Pricing Decisions

6.5 Make-Or-Buy and Other Short-Term Decisions

6.6 Dealing with Risk and Uncertainty in Decision - Making


Required Readings

1.      Horngren, C.T., Datar, S.M., and Rajan, M.V.(2015). Cost Accounting: A Managerial Emphasis. 15 th edition, Pearson, (Global edition).

2.      L.H. Hammer, W.K. Carter, & M.F. Usry, Cost Accounting, South Western Publishing.

3.      Colin Drury, Cost  and Management Accounting Chapman & Hall.

4.      L. M Walther, C. J. Skousen, Managerial & Cost Accounting (2009). Ventus Publishing.


Other readings

1.      R.H. Garrison, Management Accounting, Irwin

2.      C.T. Hongren, Cost Accounting: A Managerial Emphasis, Prentice Hall

3.      T. Lucey


Examination & Grading System

The final grade will be determined as follows:


Quizzes & Tests                15%

Mid-term Exam                 30%

Assignments                        5%

Final Exam                        50%

Total                                100%


The following cut-offs are established to assign the final letter grade:


The grading scale will be as follows:


Letter Grade

Percentage Grade

Grade Points


90 – 100



80 – 89



75 – 79



70 – 74



65 – 69



60 – 64



50 – 59



45 – 49



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