Basic Cost Accounting
Course Number: BA 215
Transcript Title: Basic Cost Accounting
Created: September 1, 2012
Updated: August 26, 2019
Total Credits: 3
Lecture Hours: 30
Lecture / Lab Hours: 0
Lab Hours: 0
Satisfies Cultural Literacy requirement: No
Satisfies General Education requirement: No
Grading options: A-F (default), audit
Repeats available for credit: 0
Covers cost accounting concepts, application, and techniques employed in the accumulation and reporting of manufacturing cost data. Particular attention shall be paid to job order costing, process costing, joint and by-product costing, standard costs, budgeting and analysis of variances. Prerequisite: WR 115, RD 115, and MTH 20 or equivalent placement test scores; and BA 211. Audit available.
Upon successful completion of BA 215, the student will be able to:
- Demonstrate an understanding of the differences between job-order costing and process costing.
- Demonstrate knowledge of the tools to make management decisions using relevant costs and capital budgeting techniques.
- Explain how an organization develops their master budget.
- Demonstrate knowledge of standard costs and analysis of variances.
Outcome Assessment Strategies
At the beginning of the course, the instructor will detail methods used to evaluate student progress and the criteria for assigning a course grade. Assessment methods may include the following:
- Objective examinations such as multiple choice, matching, short answer, etc.
- Exercise and problem test items.
- Problem assignments which demonstrate the application of appropriate accounting procedures.
Assessment choices may also include:
- Attendance and participation in class activities.
- Any combination of other methods, including quizzes, group activities, presentations, practice sets, oral presentations, case studies or research assignment.
Course Activities and Design
The determination of teaching strategies used in the delivery of outcomes is generally left to the discretion of the instructor. Here are some strategies that you might consider when designing your course: lecture, small group/forum discussion, flipped classroom, dyads, oral presentation, role play, simulation scenarios, group projects, service learning projects, hands-on lab, peer review/workshops, cooperative learning (jigsaw, fishbowl), inquiry based instruction, differentiated instruction (learning centers), graphic organizers, etc.
Course Content (Themes, Concepts, Issues and Skills)
THEMES, ISSUES, CONCEPTS
- Accounting for materials
- Accounting for labor
- Accounting for manufacturing overhead
- Job-order costing
- Process costing
- Accounting for spoiled units, units lost, units gained in production
- Standard costs and variance analysis
- Cost-volume-profit analysis
- Relevant costs for decision making
- Time value of money
- Capital budgeting
- Critical Thinking
- Effective written and oral communications
- Ethical conduct
COMPETENCIES AND SKILLS
- Identify and describe the basic cost concepts, and understand the manufacturing environment.
- Demonstrate job-order costing, including the accounting for the purchase of materials, issuing materials into production, accounting for labor, accounting for factory overhead, and applying overhead to production.
- Demonstrate the accounting for scrap, spoiled, and defective units.
- Explain process cost accounting, including weighted average costing of work in process, FIFO costing of work in process, and accounting for units lost or increased in production.
- Describe the various accounting methods for joint products and by-products.
- Demonstrate the analysis of cost behavior by preparing scattergraph, using high-low method, and performing a least-squares analysis. Identify the difference between absorption costing and direct costing.
- Demonstrate the essentials of budgeting, including the use of standard costs and actual costs through variance analysis.
- Demonstrate the ability to make decisions using relevant costs. Identify the basic concepts behind capital budgeting including the tools for analysis.
Analysis-type instruction is utilized throughout the course in introducing students to the fundamentals of cost accounting. This course is a requirements for the two-year Associate of Applied Science degree in Accounting.
The lecture time is used to provide the student with the basic tools to analyze costs and prepare financial statements for a manufacturing firm. Discussion on topics presented, visual aids, and related problems provide the opportunity to develop insight and experience in applying cost accounting concepts.