Cost Accounting

I.     Course Prefix/Number: ACC 245

       Course Name: Cost Accounting

       Credits: 3 (3 lecture; 0 lab)

II.    Prerequisite

Recommended: ACC 154 Managerial Accounting

III.   Course (Catalog) Description

Course presents managerial and cost accounting with a focus on how management can use this information to make strategic business decisions. Content includes application of cost concepts in manufacturing under differing costing methods, with focus on job, process, standard, variable and activity-based costing.  Additional content includes short and long-term decision techniques with focus on cost-volume-profit analysis and capital budgeting.  Assignments include computerized spreadsheeting.

IV.   Learning Objectives

At the conclusion of this course, students will be able to:

  • define the accounting terms applicable to a manufacturing industry
  • prepare an income statement for a manufacturer showing, in detail, the sum of the various inventories in determining Cost of Goods Sold
  • properly classify costs as variable, mixed, and fixed
  • use cost-volume-profit analysis to make strategic business decisions
  • use job order costing, process costing, and activity-based costing to determine unit costs and make decisions with this information
  • prepare a master budget and establish responsibility for managers
  • calculate flexible budgets and apply standard costs for jobs to compute the variances from standard to actual
  • make short-term and long-term decisions using various relevant costing models
  • evaluate performance of managers using the balanced scorecard
  • use capital budgeting and time value of money to make investment decisions

V.    Academic Integrity and Student Conduct

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.

Please review the Code of Academic Conduct and the Code of Student Conduct, both located online at

VI.   Sequence of Topics

  1. The Manager and Management Accounting
  2. Introduction to Cost Terms and Purposes
  3. Cost-Volume-Profit Analysis and Decision Making
  4. Job Order Costing and Allocation of Overhead
  5. Process Costing
  6. Activity Based Costing and Activity Based Management
  7. Master Budget and Responsibility Accounting
  8. Flexible Budgets
  9. Variance Analysis and Management Control
  10. Relevant Costing and Decision Making
  11. Balanced Scorecard and Strategic Profitability
  12. Capital Budgeting and Cost Analysis

VII.  Methods of Instruction

Textbook, online tools, videos, homework, quizzes, exams and Excel projects.

Course may be taught as a face-to-face, hybrid or online course

Course may be taught as face-to-face, hybrid or online course.

VIII. Course Practices Required

  • Students must perform on a college level with reading, writing, problem-solving
  • There is weekly homework and discussions due
  • Students will use Microsoft Excel. There will be a tutorial for new users

IX.   Instructional Materials

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

In example:
Cost Accounting, Datar, Horngren, and Rajan. 15th Edition, bundled with MyAccountingLab access code.

X.    Methods of Evaluating Student Progress

Varies by instructor.

Will include homework, quizzes, practice exams, discussion postings, Excel projects and exams

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.

Oakton Community College is committed to maintaining a campus environment emphasizing the dignity and worth of all members of the community, and complies with all federal and state Title IX requirements.

Resources and support for
  • pregnancy-related and parenting accommodations; and
  • victims of sexual misconduct
can be found at

Resources and support for LGBTQ+ students can be found at

Electronic video and/or audio recording is not permitted during class unless the student obtains written permission from the instructor. In cases where recordings are allowed, such content is restricted to personal use only. Any distribution of such recordings is strictly prohibited. Personal use is defined as use by an individual student for the purpose of studying or completing course assignments.

For students who have been approved for audio and/or video recording of lectures and other classroom activities as a reasonable accommodation by Oakton’s Access Disabilities Resource Center (ADRC), applicable federal law requires instructors to permit those recordings. Such recordings are also limited to personal use. Any distribution of such recordings is strictly prohibited.

Violation of this policy will result in disciplinary action through the Code of Student Conduct.