SOLUSI UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

DEPARTMENT OF ACCOUNTING

ACCT 231 – COST ACCOUNTING (3 CR)

COURSE SYLLABUS

 

Course Meting: M/W 0730 – 0930HRS                                 Room: FOB 2

Office: Beit Hall                                                                      Cell:     +263774009604

Email:  ndiwenib@solusi.ac.zw                                              Skype: ndiweni.beckie

 

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

a.       Attendance in all scheduled class appointments is mandatory. 

b.      Each session to begin with a prayer.

c.       As stewards of time students are expected to be punctual in all classes and are expected to submit their assignments as they fall due. Late work will not be tolerated.

d.      Each student is encouraged to actively participate in the class activities.

e.       Students are encouraged to work in small groups, but should refrain from duplicating other students’ work.  All assignments must reflect each student’s work and ingenuity.

f.       Academic DISHONESTY will not be tolerated and may lead to lowering of a letter grade or dismissal from the class.

 

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

A

90 – 100

 12.00

A-

80 – 89

 11.01

B+

75 – 79

 9.99

B

70 – 74

 9.00

B-

65 – 69

 8.01

C+

60 – 64

 6.99

C

50 – 59

 6.00

D

45 – 49

 3.00

F

0   - 44

 0.00

 

Course Assessment

The tests and examinations may be a mixture of multiple choice and essays. Some tests and assignments will be done and submitted online (moodle)

 

NB: Test dates, Mid Term Examination date and Assignments submission dates & times are prescribed on moodle platform.

 

 

TENTATIVE SCHEDULE

Date

Topic

Class Activity

Assignment

Lesson 1

1          Introduction to Cost Accounting.

1.1 The Scope of Cost Accounting

1.2 Cost Classification

1.3 Cost Behavior and Estimation

Group discussions.

Test 1

Watch videos on moodle.

Lesson 2

2          Costing Approaches

2.1 Direct/Variable Costing

2.2 Absorption/Full Costing

2.3 Activity-Based Costing

Assignment 1

Lesson 3

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

Group Discussions and Presentations

Test 2

Watch videos on moodle.

 

Assignment 2

Lesson 4

 

 

 

 

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

Test 3

Watch videos on moodle.

 

Assignment 3

 

MID TERM EXAMINATION

 

 

Lesson 5

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

Group Discussions

Test 4

Watch videos on moodle.

 

 

Lesson 6

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

 

Group Discussions and Presentations

 

Watch videos on moodle.

 

Assignment 4