Course Number and Title: ACC 221 Cost Accounting
This course covers cost concepts, cost accounting information systems, and the role of the cost accountant. Topics include the elements of cost, job order costing, process costing, by-products, joint products, activity-based costing, and variance analysis.
- Describe the cost accountant’s role in a cost accounting environment. (CCC 1, 2, 5, 6; PGC 2)
- Discuss the use of cost terminology and classifications, and describe the cost accounting information system. (CCC 1, 2, 5, 6; PGC 2)
- Calculate predetermined overhead rates; prepare an analysis of fixed, variable, and mixed costs; and distinguish between absorption and variable costing. (CCC 1, 2, 5, 6; PGC 2)
- Describe the job order costing system, and determine the total cost assigned to jobs. (CCC 1, 2, 5, 6; PGC 2)
- Describe the process costing system, and prepare a cost of production report. (CCC 1, 2, 5, 6; PGC 2)
- Allocate joint production costs to joint products, by-products, and scrap. (CCC 1, 2, 5, 6; PGC 2)
- Describe activity based costing, and calculate product costs. (CCC 1, 2, 5, 6; PGC 2, 5)
- Explain the fundamentals of variance analysis, and compute variances. (CCC 1, 2, 5, 6; PGC 2, 5)
See Core Curriculum Competencies and Program Graduate Competencies at the end of the syllabus. CCPOs are linked to every competency they develop.
Upon completion of this course, the student will:
- Describe the cost accountant’s role in a cost accounting environment.
- Describe how managers use accounting information to create value in organizations.
- Distinguish between the uses and users of cost accounting and financial accounting information.
- Explain how cost accounting information is used in decision making and performance evaluation in organizations.
- Identify current trends in cost accounting.
- Discuss ethical issues faced by accountants and how to deal with related ethical problems.
- Examine the use of cost terminology and classifications, and describe the cost accounting information system.
- Explain the basic concept of “cost.”
- Explain how costs are presented in financial statements.
- Explain the process of cost allocation.
- Examine how material, labor, and overhead costs are added to a product at each stage of the production process.
- Define basic cost behaviors, including fixed, variable, semi-variable, and step costs.
- Identify the components of a product’s costs.
- Describe cost accounting, labor, and payroll costs.
- Present the flow of manufacturing cost using general journal entries and T accounts.
- Prepare a statement of cost of goods manufactured, and explain how it is used in preparing an income statement.
- Calculate predetermined overhead rates; prepare an analysis of fixed, variable, and mixed costs; and distinguish between absorption and variable costing.
- Calculate predetermined overhead rates.
- Explain the difference between financial and contribution margin income statements.
- Explain how absorption and variable costing differ.
- Describe how changes in sales or production levels affect net income computed under absorption and variable costing.
- Analyze the reasons for estimating fixed and variable costs.
- Describe the job order costing system, and determine the total cost assigned to jobs.
- Explain what job and job shop mean.
- Assign costs in a job cost system.
- Account for overhead using predetermined rates.
- Apply job costing methods in service organizations.
- Explain ethical issues in job costing.
- Describe the differences between jobs and projects.
- Distinguish between job orders and process costing systems.
- Describe the process costing system, and prepare a cost of production report.
- Explain the concept and purpose of equivalent units.
- Assign costs to products using weighted-average costing.
- Prepare and analyze a production cost report.
- Assign costs to products using first-in, first-out (FIFO) costing.
- Analyze the accounting choice between FIFO and weighted-average costing.
- Explain when to use process or job costing.
- Compare and contrast operation costing with job costing and process costing.
- Allocate joint production costs to joint products, by-products, and scrap.
- Explain why joint costs are allocated.
- Allocate joint costs using the net realizable value method.
- Allocate joint costs using the physical quantities method.
- Explain how cost data are used in the sell-or-process-further decision.
- Account for by-products and scrap.
- Describe activity-based costing, and calculate product costs.
- Explain how a two-stage product costing system works.
- Compare and contrast plant-wide and department allocation methods.
- Explain how activity based costing and a two-stage product system are related.
- Compute product costs using activity-based costing.
- Compare activity-based product costing to traditional department product costing methods.
- Apply activity-based costing to marketing and administrative services.
- Explain the fundamentals of variance analysis, and compute variances.
- Use budgets for performance evaluations.
- Develop and use flexible budgets.
- Compute and use variable cost variances.
- Compute and use fixed cost variances.
- Demonstrate how to record costs in a standard costing system.
The grade will be determined using the Delaware Tech grading system:
Students should refer to the Student Handbook for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.
Calculated using the following weighted average
Percentage of final grade
Summative: Exams (4-6) (Equally weighted)
Formative Assessments: Assignments/Activities/Quizzes/Serial Problems, etc.
- Apply clear and effective communication skills.
- Use critical thinking to solve problems.
- Collaborate to achieve a common goal.
- Demonstrate professional and ethical conduct.
- Use information literacy for effective vocational and/or academic research.
- Apply quantitative reasoning and/or scientific inquiry to solve practical problems.
- Prepare and analyze financial statements in accordance with Generally Accepted Accounting Principles.
- Analyze data to process information for decision-making under a product and job costing system.
- Utilize the theory of the Generally Accepted Auditing Standards.
- Apply tax laws to the preparation of tax returns and to tax plans.
- Integrate professional, ethical and legal standards into business practice.
- Employ the various theories of management and marketing in a business.
The College is committed to providing reasonable accommodations for students with disabilities. Students are encouraged to schedule an appointment with the campus Disabilities Support Counselor to request an accommodation needed due to a disability. A listing of campus Disabilities Support Counselors and contact information can be found at the disabilities services web page or visit the campus Advising Center.