Course Outline for Business 4

ChabotCollegeFall 2007

Course Outline for Business 4

COST ACCOUNTING

Catalog Description:

4 - Cost Accounting3 units

Principles of cost build up and techniques for gathering cost, cost control, job order, process costing, managerial use of cost data, emphasis on application of principles. Prerequisite: Business 1B (completed with a grade of C or higher). 3 hours.
[Typical contact hours: 52.5]

Prerequisite Skills:

Before entering the course, the student should be able to demonstrate:

1.process transactions germane to corporations;

2.identify the differences in the accounting process of a corporation as contrasted to other business forms;

3.understand long-term liabilities, bonds, and present value tables;

4.process transactions dealing with debt and stock investments;

5.prepare a statement of cash flows;

6.analyze and interpret financial statements by use of ratios, trends, and comparisons;

1. analyze and process managerial accounting, manufacturing costs, fixed and

variable costs, standard costs, break-even analysis, product costing, job-order costing;

1. perform cost-volume-profit analysis;
2. identify the role of budgeting, decision making, and use of present values tables.

Expected Outcomes for Students:

Upon completion of this course, the student should be able to:

1.perform accounting procedures in a manufacturing environment;

2.perform accounting transactions for materials inventory;

3.demonstrate transactions involving direct labor and factory overhead;

4.demonstrate job order and process costing principles;

5.perform standard costs relating to materials, labor, and factory overhead;

6.demonstrate cost analysis for decision making.

Course Content:

1.Introduction to cost accounting

a.use of cost data

b.elements of manufactured cost

c.flow of costs

d.illustrations of accounting for manufactured costs

e.standard cost system

f.organizations influencing cost accounting

2.Accounting for materials

a.materials control procedures

b. accounting for materials

c.scrap, spoiled goods, and defective work

3.Accounting for labor

a.wage plans

b.controlling labor costs

c.accounting for labor costs

d.payroll

e.special labor cost problems

ChabotCollege

Course Outline for Business 4, Page 2

Fall 2007

4.Accounting for factory overhead

a.analyzing semi-variable factory overhead costs

b.budgeting factory overhead costs

c.accounting for factory overhead

d.applying factory overhead to production

e.calculation of budget and volume variances

5.Job order cost accounting

a.comprehensive illustration of job order accounting

b.chart of accounts, trial balances, books of accounts, worksheet, financial statements, adjusting and closing entries

6.Process cost accounting

a.material, labor, and factory overhead costs

b.product cost

c.work in process inventories

7.Process cost accounting--additional procedures

a.equivalent production

b.units lost in production

c.units gained in production

d.joint products and by-products

8.Standard cost accounting

a.types of standards

b. standard cost procedures

1)materials and labor

2)variances

9.Standard cost accounting-factory overhead

a.two-variance method of analysis

b. budgeted factory overhead

c. three-variance method of analysis

10.Cost analysis for management decision making

a.direct costing and absorption costing

b.segment reporting for profitability analysis

c.cost volume profit analysis

d.costs for decision making

e.differential cost analysis

f.distribution costs

Methods of Presentation:

1.Lecture

2Discussion

3.Problem solving

Assignments and Methods of Evaluating Student Progress:

1.Typical Assignments:

a.Prepare a cost sheet using job order cost method.

b.Prepare a cost sheet using process cost method.

c.Calculate materials and labor variances using Standard Cost.

2.Methods of Evaluating Student Progress:

a.Graded problems

b.Examinations

c.Final examination

ChabotCollege

Course Outline for Business 4, Page 3

Fall 2007

Textbook(s) (Typical):

FUNDAMENTALS OF COST ACCOUNTING, Maher, Lanen, & Rajan, McGraw Hill, 2006

PRINCIPLES OF COST ACCOUNTING, Edward Vanderbeck, 13th Edition, Southwestern, 2005

Special Student Materials:

Calculator

WW 9/2006

Bus 04 course outline.doc