Overview
This course is a study of the fundamentals of cost accounting within an industrial organization. The accounting functions related to materials, labor, and factory overhead are treated in detail. Job order and process cost systems are fully explored. Standard cost systems, budgeting, and managerial control functions are also discussed.
Upon completion of this course, the student will:
l understand the design and use of Activity–Based Costing Systems.
l understand how costs are classified, why such classifications are useful and the assumptions made relative to cost behavior.
l understand how and why cost is allocated to products and services.
l understand process costing and cost of production report using average costing and FIFO costing methods.
l understand why lost units, normal and abnormal, occur in manufacturing process.
l understand costing for joint products and by-products.
l understand standard costing, setting and analyzing variances.
l understand factory overhead and overhead variances.
Syllabus
l Introduction
Cost accounting: basic concepts
Type of cost, cost assignment, costing methods
l Type of cost
Materials costing
Labor cost and machinery
l Cost allocation, cost assignment. Costing Methods. Actual cost.
Job costing
Cost allocation
Variable costing
Process costing systems
Cost of quality. Spoilage
Joint production process
l Activity-based Costing
Activity
Cost drivers
Cost pool
Cost allocation
Activity based cost management
l Tools for planning and control. Budgeted costs
Budget and planning
Standard costs