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Cost Accounting

I.     Course Prefix/Number: ACC 245

       Course Name: Cost Accounting

       Credits: 3 (3 lecture; 0 lab)

II.    Prerequisite

Recommended: ACC 154

III.   Course (Catalog) Description

Course presents advanced discussion of cost accounting and provides in-depth study of additional concepts/techniques beyond scope of ACC 154.  Content includes application of  cost concepts in manufacturing under differing costing methods, with focus on job, process, standard, variable and activity based costing.  Short-term and long-term decision techniques with focus on cost-volume-profit analysis, incremental analysis and capital budgeting.  Additional content includes inventory control, JIT, cost allocation methods and decentralization issues with transfer pricing.  Assignments incorporate computerized spreadsheeting.

IV.   Learning Objectives

Upon successful completion of this course, the student should demonstrate the ability to:
A.    Define the accounting terms applicable to a manufacturing industry.
B.    Prepare an income statement for a manufacturer showing, in detail, the sum of the various inventories in determining Cost of Goods Sold.
C.    Use job order cost, process cost and standard cost systems.
D.    Allocate the manufacturing costs to the products under all three of the above methods.
E.    Properly classify costs as variable, mixed, and fixed.
F.    Calculate and apply standard costs for jobs and to compute the variances from standard to actual.
G.    Allocate joint costs and by product costs to the products produced.
H.    Prepare various forms of budgets (cash, production, purchases, capital, etc.)
I.    Determine income effects of alternative product costing methods.
J.    Use cost-volume-profit analysis.
K.    Define relevant costs and use capital budgeting in deciding whether to make or buy, sell or lease, etc.
L.    Understand decentralization issues and transfer pricing.

V.    Academic Integrity

Students and employees at Oakton Community College are required to demonstrate academic integrity and follow Oakton's Code of Academic Conduct. This code prohibits:

• cheating,
• plagiarism (turning in work not written by you, or lacking proper citation),
• falsification and fabrication (lying or distorting the truth),
• helping others to cheat,
• unauthorized changes on official documents,
• pretending to be someone else or having someone else pretend to be you,
• making or accepting bribes, special favors, or threats, and
• any other behavior that violates academic integrity.

There are serious consequences to violations of the academic integrity policy. Oakton's policies and procedures provide students a fair hearing if a complaint is made against you. If you are found to have violated the policy, the minimum penalty is failure on the assignment and, a disciplinary record will be established and kept on file in the office of the Vice President for Student Affairs for a period of 3 years.
Details of the Code of Academic Conduct can be found in the Student Handbook.

VI.   Sequence of Topics

A.    Basic Concepts, Functions of Managerial Accounting Systems, Cost Terms, Cost of Goods Manufactured.
B.    Cost-Volume-Profit Analysis, Contribution Margin Approach.
C.    Standard Costs: Direct Material and Direct Labor Variances.
D.    Standard Costs and Flexible Budgeting for Overhead:  Variable and Fixed Overhead Variances.  Denominator Levels, and Prorations.
E.    Capital Budgeting and Present Value Concepts, Payback, Rate of Return and BET.
F.    Inventory Planning and Control, EOQ, JIT, MRP, Lead-Time and Safety Stock.  Also, other DCF Topics.
G.    Cost Allocations:  Direct, Step and Reciprocal Methods.  Controllability Issues.
H.    Joint-Product and By-Product Costs.
I.    Job Costing Systems in Manufacturing.
J.    Activity-Based Costing.
K.    Process Cost Systems:  Weighted Average, FIFO, Standard Costing.
L.    Process Costing With Normal and Abnormal Spoilage.
M.    Responsibility Accounting and Controllability.
N.    Goal Congruence, Motivation, Evaluation
O.    Decentralization, Transfer Pricing, Opportunity Costs.
P.    Strategic Control Systems, Quality, Time and Cost.

VII.  Methods of Instruction

A.    Lecture and Discussion
B.    Problem Solving
C.    Case Problems
Course may be taught as face-to-face, media-based, hybrid or online course.

VIII. Course Practices Required

A.    Reading, writing at college level.
B.    Participation in class discussions.

IX.   Instructional Materials

Note: Current textbook information for each course and section is available on Oakton's Schedule of Classes.

Varies by instructor.

X.    Methods of Evaluating Student Progress

A.    Four Tests (100 points each)
Final Exam (200 points each)
Homework   (6 points each)
Quizzes    (10 points each)
Projects/Cases (50 points each)
Attendance is considered if a student is between grades

B.    A point scale based on a total possible points.
90 - 100% = A
80 -  89% = B
70 -  79% = C
60 -  69% = D
59% & Below F

 

XI.   Other Course Information



If you have a documented learning, psychological, or physical disability you may be entitled to reasonable academic accommodations or services. To request accommodations or services, contact the Access and Disability Resource Center at the Des Plaines or Skokie campus. All students are expected to fulfill essential course requirements. The College will not waive any essential skill or requirement of a course or degree program.